Question 1The following data, in physical units, describe a grinding process for January:Work in process, beginningStarted during current periodTo account forSpoiled unitsGood units completed and transferred outWork in process, endingAccounted for19,00050,000169,00012,000132,00025,000169,000Inspection 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.

Reference:Tamplin, T. (2024, April 26). Abnormal Spoilage | Definition, Causes, and Calculation.…

Answered: Question 1 The following data, in…

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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In each case below, fill in the missing amount. 1. Work in process, September 1 Units started during September Units completed during September Work in process, September 30 2. Work in process, February 1 Units started during February Units completed during February Work in process, February 28 3. Work in process, January 1 Units started during the year Units completed during the year Work in process, December 31 9,000 tons tons 19,000 tons 2,000 tons 13,000 kilograms 1,500 kilograms 9,200 kilograms kilograms + 100,000 gallons 850,000 gallons gallons 200,000 gallons
Required information Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Note: Assume all raw materials were used as direct materials. Beginning of Year End of Year Inventories Raw materials inventory $ 6,300 $ 8,100 Work in process inventory 12, 600 9,300 Finished goods inventory 9, 100 5,800 Activity during current year Raw materials purchased $ 124,100 Direct labor 94,300 Factory overhead 39,900 QS 14-17 (Algo) Schedule of cost of goods manufactured LO P2 Factory overhead of $39,900 consists of Indirect labor of $20,300, Depreciation expense-Factory of $15,300, and Factory utilities of $4,300. Compute total manufacturing costs. Prepare a schedule of cost of goods manufactured.
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Preparation of Process Accounts (With Closing WIP but no process losses) Practice Problem 8 In process A on 1st March, there was no work-in-progress. During the month of March, 2,000 units of material were issued at a cost of RO 18,000. Labour and overheads totaled RO 9,000 and RO 6,600 respectively. On 31st March, 1,500 units were completed and transferred to the next process. On the remaining 500 units, which are incomplete, degree of completion was as follows Materials 100% Labour 60% Overhead 30% Prepare (a) Statement of Equivalent Production (b) Statement of Cost (c) Statement of Evaluation (d) Process Account
Case 2: Consider the following data for the Assembly Department of Sink Manufacturing Company: Quantity Work in process, May 1 Started in May Completed during May Work in process, May 31 80 500 460 120 Stage of Completion Materials WIP-Beg. 90% 40% WIP-End 60% 30% Conversion Costs Cost Data: Materials P49,336 322,000 Conversion Costs Work in process, May 1 Cost added during May P9,104 139,200 The Assembly Department uses the average method of process costing. What are the equivalent units of production for direct materials and conversion costs? 5. FIFO METHOD -EUP AS TO MATERIALS: 6. FIFO METHOD -EUP AS TO CC:
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Problem The Molding Department is the second department in Paxton Company production process. The data below summarize the operations in January. Cost for January Work in process, January 1 Added during the month Beginning work in process inventory Started in January Completed and transferred to the next department during January Ending work in process inventory All materials are added at the start of the process. Materials (Php) Conversion Costs (Php) 35,000 54,000 165,000 315,000 Units Percentage Complete 5,000 55,000 48,000 12,000 Prepare Cost of Production Report using Weighted Average and FIFO Method. 80% 20%
If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August? a.$390,000 b.$525,000 c.$580,000 d.$170,000

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