The following table presents the flow of production in units. Assume that there are 5,000 total spoiled units at each stage of completion and that the normal spoilage rate is 3% of good units passingthe inspection point. What is the number of normal spoiled units recognized at the 40% stage of completion?Click the icon to view the flow of production table.O A. 1,950B. 1,500C. 1,800D. 1,650E. 1,740Flow of ProductionWork-in-process beginning (20% complete)Started during the monthTo account forGood units completed and transferredNormal spoilageAbnormal spoilageWork-in-process ending inventory (30% complete)To account forPhysical UnitsInspection at Stage of Completionat 15%at 40%at 100%10,00010,00010,00055,00055,00055,00065,00065,00065,00058,000??3,00065,00058,000??3,00065,00058,0002.2.??3,00065,000X

Inventory means the detailed list or stock of items, goods, or materials held by a business or…

The following table presents the flow of production in units. Assume that there are 5,000 total spoiled units at each stage of completion and that the normal spoilage rate is 3% of good units passing the inspection point. What is the number of normal spoiled units recognized at the 40% stage of completion? Click the icon to view the flow of production table. O A. 1,950 OB. 1,500 O C. 1,800 OD. 1,650 OE. 1,740 Flow of Production Work-in-process beginning (20% complete) Started during the month To account for Good units completed and transferred Normal spoilage Abnormal spoilage Work-in-process ending inventory (30% complete) To account for Physical Units Inspection at Stage of Completion at 15% at 40% at 100% 10,000 10,000 10,000 55,000 55,000 55,000 65,000 65,000 65,000 58,000 ? ? 3,000 65,000 58,000 ? ? 3,000 65,000 58,000 ? ? 3,000 65,000 - X

The following table presents the flow of production in units. Assume that there are 5,000 total spoiled units at each stage of completion and that the normal spoilage rate is 3% of good units passing the inspection point. What is the number of normal spoiled units recognized at the 40% stage of completion? Click the icon to view the flow of production table. O A. 1,950 OB. 1,500 O C. 1,800 OD. 1,650 OE. 1,740 Flow of Production Work-in-process beginning (20% complete) Started during the month To account for Good units completed and transferred Normal spoilage Abnormal spoilage Work-in-process ending inventory (30% complete) To account for Physical Units Inspection at Stage of Completion at 15% at 40% at 100% 10,000 10,000 10,000 55,000 55,000 55,000 65,000 65,000 65,000 58,000 ? ? 3,000 65,000 58,000 ? ? 3,000 65,000 58,000 ? ? 3,000 65,000 - X

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

The following table presents the flow of production in units. Assume that there are 5,000 total spoiled units at each stage of completion and that the normal spoilage rate is 3% of good units passing
the inspection point. What is the number of normal spoiled units recognized at the 40% stage of completion?
Click the icon to view the flow of production table.
O A. 1,950
B. 1,500
C. 1,800
D. 1,650
E. 1,740
Flow of Production
Work-in-process beginning (20% complete)
Started during the month
To account for
Good units completed and transferred
Normal spoilage
Abnormal spoilage
Work-in-process ending inventory (30% complete)
To account for
Physical Units
Inspection at Stage of Completion
at 15%
at 40%
at 100%
10,000
10,000
10,000
55,000
55,000
55,000
65,000
65,000
65,000
58,000
?
?
3,000
65,000
58,000
?
?
3,000
65,000
58,000
2.2.
?
?
3,000
65,000
X

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