Problem 10: Spoiled GoodsJosh Inc. has completed the Job 101, containing 2,200 shoes, during 2016 atthe following unit costs:Direct materialsDirect labor2,0001,0001,300Factory overhead (including an allowance of P300 for spoiled work)Final inspection of Job 101 disclosed 200 spoiled shoes which were sold to adepartment for P400,000.Required:1. What is the unit cost of shoes produced on Job 101 if spoilage loss iscommon to all jobs?2. What is the unit cost of shoes produced on Job 101 if spoilage loss ischarged to specific Job 101?

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Answered: Problem 10: Spoiled Goods Josh Inc. has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 3: Sur Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2015 for the company and for Job 50: Company OMR 60.000 OMR 25,000 OMR 72,000 90.000 Job 50 OMR 4,000 OMR 2.500 Direct materials Direct labor Manufacturing overhead costs Machine hours 1,350 During 2015, the actual machine-hours totaled 94,000, and actual overhead costs were OMR 71,000. Instructions (a) Compute the predetermined overhead rate. (b) Compute the manufacturing overhead applied. (c) Compute the total manufacturing costs for Job 50.
Job A has 1,000 units with costs incurred as follows: Direct materials of 100,000; Direct labor of 200,000 (1 unit requires 2 DL hrs) and with OH rate is 20 per DL hr (includes allowance for spoilage of 5 per DL hr). Per inspection, waste was determined weighing 100 kgs with zero value and damaged units (not reparable) of 100 units with salvage value of 30,000. The damage units were due to customer’s specifications. The good units were delivered and sold to customer at 1,000 per good unit. If rent and utility expenses totaled 50,000, compute the gross profit (at normal cost).
What is the cost per unit of Job number 007 if the rework costs were attributable to the exacting specifications?
Manufacturing overhead has an underallocated balance of $12,400; raw materials inventory balance is $145,500; work in process inventory is $122,800; finished goods inventory is $140,300; and cost of goods sold is $170,500. After adjusting for the underallocated manufacturing overhead, what is cost of goods sold? Question 44 options: $12,400 $182,900 $170,500 $158,100
(Defective units and rework) Plastico produces plastic pipe to customer specifications. Losses of less than 5 per cent are considered normal because they are inherent in the production process. The company applies overhead to products using machine hours. PlastiCo used the following information in setting its predetermined OH rate for 2010: Expected overhead other than rework $850,000 Expected rework costs 75,000 Total expected overhead $925,000 Expected machine hours for 2010 100,000 During 2010, the following production and cost data were accumulated: 2,000,000 feet of pipe 40,000 feet of pipe Total good production completed Total defects Ending inventory 75,000 feet of pipe Total cost of direct material for Job #B316 $687,100 Total cost of direct labor for Job #B316 $157,750 Total machine hours for Job #B316 3,080 Cost of reworking defects during 2010 $75,500 Total actual overhead cost for 2010 $862,000 a. Determine the overhead application rate for 2010. b. Determine the cost for…
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At the end of 2018, Furry Balls Co. had the following account balances after factory overhead had been closed to manufacturing overhead control: Manufacturing overhead control, P20,000 dr. Cost of goods sold, P384,000 dr. Finished goods, P96,000 dr. Work in process, P160,000 dr. Raw materials, P160,000 dr. Case 1: any under- or over-applied overhead is considered immaterial. What is the adjusted balance of work in process inventory after disposing of the under-or over-applied overhead?
TOPIC: PROCESS COSTING-LOST UNITS
Exercise 6-36 (Algo) Process Costing (LO 6-1) Bremen Fitness Products produces a sports drink. On October 1, it had no work-in-process inventory. It started production of 10,200 cases of the drink in October and shipped 8,400 cases to retailers. (Bremen holds no finished goods inventory.) The costs of the resources used by Bremen in October consist of the following. Materials Conversion costs (Labor and overhead) $ 87,523 162,251 Required: The production supervisor estimates that the ending work in process is 55 percent complete on October 31. Compute the cost of cases shipped and the amount in work-in-process ending inventory as of October 31. Note: Do not round intermediate calculations. Cost of cases shipped Work-in-process ending inventory
Illustrative Problem: SPOILED GOODS The GRAND CABINET COMPANY manufactures custom cabinets for homebuilders. During the current period, an order for 3,500 was begun as Job No. 2-54. Unit cost is as follows: Direct materials Direct labor Factory overhead (includes P1.00 allowance for spoiled units) Total P 19.60 17.20 2) If loss is special (specific order). 14.80 P 51.60 When the job was completed, 200 units were rejected and sold for P15.60 each. A separate work in process account is used for each cost element. Required: Journal entries under each of the following: T 1) If loss is due to internal failure (total production).
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