Normal and abnormal spoilage in units. The following data, in physical units, describe a grinding process for January: Work in process, beginning Started during current period To account for 19,300 145,400 164,700 Spoiled units Good units completed and transferred out Work in process, ending Accounted for 12,000 128,000 164,700 Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the good units passing inspection.

Normal and abnormal spoilage in units. The following data, in physical units, describe a grinding process for January: Work in process, beginning Started during current period To account for 19,300 145,400 164,700 Spoiled units Good units completed and transferred out Work in process, ending Accounted for 12,000 128,000 164,700 Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the good units passing inspection.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4BE: The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory...

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Compute the normal and abnormal spoilage in units
The following data, in physical units, describe a grinding process for January:Work in process, beginning 19,000Started during current period 50,000To account for 169,000Spoiled units 12,000Good units completed and transferred out 132,000Work in process, ending 25,000Accounted for 169,000Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the goodunits passing inspection.Required:1. Compute the normal and abnormal spoilage in units.2. Assume that the equivalent-unit cost of a spoiled unit is $10. Compute theamount of potential savings if all spoilage were eliminated, assuming thatall other costs would be unaffected. Comment on your answer.
Using the FIFO method, the equivalent units of production for materials was:
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Watkins Company had the following production for the month: Units Work-in-process, beginning 6,000 Started during the month 24,000 Completed and transferred to finished goods 18,000 Spoilage incurred 3,000 Work-in-process, ending 9,000 Materials are added at the beginning of the process. As to conversion cost, work-in-process was 20% complete at the beginning and 70% complete at the end of the month. Spoilage is detected at the end of the process. 1. Using the weighted-average method, the equivalent units for the month, with respect to conversion cost, were: 2. Assume that the spoilage for the month included abnormal spoilage of 1,000 units, and that the total costs incurred to date for materials and conversion costs are $30,000 and $54,600, respectively. What is the amount…
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