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t of spoilage chargeable to Revenue is (recognized as expenses)?

t of spoilage chargeable to Revenue is (recognized as expenses)?

FINANCIAL ACCOUNTING
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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The total cost of spoilage chargeable to Revenue is (recognized as expenses)?

Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost. Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they are completed. Units are inspected at the end of the production process (discrete) in the Forming Department and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept. are: UNITS: Units in beginning inventory, 100% M, 35%CC Units started in process Units transferred to next department Units in process end, 100% M, 65% COSTS: 10,000 90,000 80,000 15,000 Costs- prior period Costs this period P12,600 Materials Labor P360,000 7,700 111,390 Overhead 14,000 222,780
Transcribed Image Text:Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost. Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they are completed. Units are inspected at the end of the production process (discrete) in the Forming Department and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept. are: UNITS: Units in beginning inventory, 100% M, 35%CC Units started in process Units transferred to next department Units in process end, 100% M, 65% COSTS: 10,000 90,000 80,000 15,000 Costs- prior period Costs this period P12,600 Materials Labor P360,000 7,700 111,390 Overhead 14,000 222,780
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