Manufacturing Company uses FIFO method of accumulating costs in a two-department process. Materials are introduced at the inception of the process except for a special material which is added in department 2 at 60% completion as to overhead. Inspection is done at the end of the process in both departments. Production data for Department 2 are given below: In process, beginning, (80% labor, 70% overhead) 2,000 Transferred in 14,900 In process, ending (40% labor, 20% overhead) 3,000 Normal spoilage 200 Abnormal spoilage (found at 30% completion as to labor and 15% as to overhead due to internal failure) 400 Cost data for the month: In process beginning: Transferred in 15,020 Special materials 1,900 Direct labor 4,388 Overhead 11,044 Current costs: Transferred in 137,080 Special materials 14,030 Direct labor 46,000 Overhead 113,564 The cost of units transferred to finished goods is? The cost of spoilage charged to revenue is?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Manufacturing Company uses FIFO method of accumulating costs in a two-department process.
Materials are introduced at the inception of the process except for a special material which is added in
department 2 at 60% completion as to overhead. Inspection is done at the end of the process in both
departments. Production data for Department 2 are given below:
In process, beginning, (80% labor, 70% overhead)
2,000
Transferred in 14,900
In process, ending (40% labor, 20% overhead) 3,000
Normal spoilage 200
Abnormal spoilage (found at 30% completion as to labor
and 15% as to overhead due to internal failure) 400
Cost data for the month:
In process beginning:
Transferred in 15,020
Special materials 1,900
Direct labor 4,388
Overhead 11,044
Current costs:
Transferred in 137,080
Special materials 14,030
Direct labor 46,000
Overhead 113,564
The cost of units transferred to finished goods is?
The cost of spoilage charged to revenue is?
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