Michael's Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated from good units. The following details relate to production for the month of October 2020, for the Baking Department. i) Work-in-process, October 1: -0- ii) Transfer from Moulding: 2,000 units valued at $336.40 each Other manufacturing costs incurred during October: $202,120 $212,840 Direct material added Direct Manufacturing Wages Manufacturing Overhead Applied $306,160 iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion: From Moulding 100% Direct material added 40% Conversion costs 12%% vi) 1,200 pieces were completed and transferred out to the Spraying Department. vii) Work-in-process at the end of October had reached the following degree of completion: From Moulding 100% Direct material added 70% Conversion costs 55% Direct materials added and conversion costs are incurred uniformly throughout the process.
Michael's Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated from good units. The following details relate to production for the month of October 2020, for the Baking Department. i) Work-in-process, October 1: -0- ii) Transfer from Moulding: 2,000 units valued at $336.40 each Other manufacturing costs incurred during October: $202,120 $212,840 Direct material added Direct Manufacturing Wages Manufacturing Overhead Applied $306,160 iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion: From Moulding 100% Direct material added 40% Conversion costs 12%% vi) 1,200 pieces were completed and transferred out to the Spraying Department. vii) Work-in-process at the end of October had reached the following degree of completion: From Moulding 100% Direct material added 70% Conversion costs 55% Direct materials added and conversion costs are incurred uniformly throughout the process.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Given that 25% of the unexpected losses were because of pilferage, prepare the abnormal spoilage statement, clearly showing Michael Pottery’s true loss
Transcribed Image Text:Michael's Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking &
Spraying. Quality control check takes place during the process, at which point, rejected units are separated from
good units.
The following details relate to production for the month of October 2020, for the Baking Department.
i)
Work-in-process, October 1: -0-
ii)
Transfer from Moulding: 2,000 units valued at $336.40 each
iii)
Other manufacturing costs incurred during October:
Direct material added
$202,120
Direct Manufacturing Wages
$212,840
Manufacturing Overhead Applied
$306,160
iv)
Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the
Baking Department are deemed to be scrap and sold at $382 each.
v)
At inspection 300 decorative pieces were rejected as scrap. These units had reached the following
degree of completion:
From Moulding
100%
Direct material added
40%
Conversion costs
12%%
vi)
1,200 pieces were completed and transferred out to the Spraying Department.
vii)
Work-in-process at the end of October had reached the following degree of completion:
From Moulding
100%
Direct material added
70%
Conversion costs
55%
Direct materials added and conversion costs are incurred uniformly throughout the process.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 11 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education