The Peric Manufacturing Shop produces motorcycle parts. Typically, 12 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $40.00 per unit. Spoiled pieces may be disposed at $8.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 3,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? a. Dr. Work-in-Process Control 96; Cr. Materials Control 96 b. Dr. Materials Control 288; Cr. Work-in-Process Control 288 c. Dr. Work-in-Process Control 288; Cr. Materials Control 288 d. Dr. Materials Control 96; Cr. Work-in-Process Control 96

The Peric Manufacturing Shop produces motorcycle parts. Typically, 12 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $40.00 per unit. Spoiled pieces may be disposed at $8.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 3,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? a. Dr. Work-in-Process Control 96; Cr. Materials Control 96 b. Dr. Materials Control 288; Cr. Work-in-Process Control 288 c. Dr. Work-in-Process Control 288; Cr. Materials Control 288 d. Dr. Materials Control 96; Cr. Work-in-Process Control 96

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 12E: A local barbershop cuts the hair of 1,200 customers per month. The clients are men, and the barbers...

See similar textbooks

Similar questions

Jack Company's production report for Job #901 showed that 5 vehicle parts out of 100 vehicle parts are spoiled. Costs assigned prior to the inspection point are P10,000 per part. When the spoilage is detected, the spoiled goods were valued at P2,000 per part, the net disposal value. Required: Compute the following: (1) Jack determined that the spoilage is caused by the specifications of a particular job. What amount should be debited to factory overhead? (2) Based on your answers to (1), how much is the cost per good unit? (3) If the spoilage is a normal characteristic of the production process, what amount should be debited to factory overhead? (4) If the spoilage is abnormal, how much is the cost per good unit?
Southwest toys manufacturers gloves at its San Francisco facility. The company uses job costing and provides you with the following information regarding operations for April 2020: Data table Total globes manufactured 35000 Globes rejected as spoiled units 850 Total manufacturing costs $700000 Requirements 4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred. Data Table Total globes manufactured 35,000 Globes rejected as spoiled units 850 Total manufacturing cost $700,000 ************************only need ansrew to #4***********************************
I need requirement B-D please.
I need requirement A-C please.
Juniper Company manufactures a single product in two departments, Cutting and Finishing. Units of product are started in the Cutting Department and then transferred to the Finishing Department, where they are completed. Units are inspected at the end of the production process in the Finishing Goods Inventory, and spoiled units are transferred to Spoiled Goods Inventory. Spoiled units are inventoried at their salvage value of P15.00 each, and the unrecoverable cost of spoilage is charged to Factory Overhead Control During July, 5,000 units were transferred from the Cutting Department to the Finishing Department and 3,800 were transferred from the Finishing Department to Finished Goods Inventory. At the end of July, the Finishing Department still had 800 units in process, 40% complete as to materials and 20% complete as to conversion costs. Cost data related to July operations in the Finishing Department are: Cost from preceding department P60,000 Materials 22,600 Labor 17,440 Overhead…
Zumiez Company produces a small standard component in a process operation. 25. There is a quality control check at the end of processing, and items which fail the check are sold as scrap for P2.80 per unit. The expected rate of rejection is 10%. Normal loss is not given any cost, except that whatever scrap value it has is credited to the process account. The cost of abnormal loss, net of scrap value, is written off to the profit and loss account. Data for April 2015 are as follows: Materials 4,000 units P16,000 Conversion costs 24,000 Output to finished goods 3,000 units Assuming there were no work in process at the beginning and end of the month, what was the full cost of the finished output that passed the quality control check? P32,400 a. b. P33,333 C. P36,000 d. P38,880
Grace Company manufactures picture frames of all sizes and shapes and uses job-order costing system. There is always some spoilage in each production run. The following costs relate to the current run: Estimated overhead (exclusive of spoilage) Spoilage (estimated) Sales value of spoiled frames Labor hours P 160,000 25,000 11,500 100,000 The actual cost of a spoiled picture frame is P7.00. During the year, 170 frames are considered spoiled. Each spoiled frame can be sold for P4. The spoilage is considered a part of all jobs (factory overhead). What amount should be debited to Factory Overhead Control to record spoilage pertaining to unrecovered cost?
In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 450 towels were in process and were 60 percent complete. The costs incurred were $160. During the month, costs of $15,600 were incurred, 3,900 towels were started, and 225 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete. Required: a. Prepare a production cost report: the company uses FIFO process costing. b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.
Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit: DIRECT MATERIALS P10 DIRECT LABOR 8 APPLIED FACTORY OVERHEAD 12 TOTAL P30 Final inspection of Job 403 disclosed 50 defective units and 100 spoiled units. The defective units were reworked at a total cost of P500, and the spoiled units were sold to an employee for P1,500. What would be the unit cost of the good units produced on Job 403? SOLUTION MUST BE IN GOOD ACCOUNTING FORM. EXCEL FORM WILL ALSO BE GOOD!
Roen Company incurred an activity cost of $117,300 for inspecting 46,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 46,000 units of production, the inspection activity was limited to a random selection of 4,600 units out of the 46,000 units of production. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the inspection activity cost per unit on 46,000 units of total production both before and after the improvement. Do not round intermediate calculations. If required, round per unit amounts to the nearest cent. Inspection activity before improvement: $ per unit Inspection activity after improvement: $ per unit
Ferdon inc. company started job #4 with 32 units. 7 units were rejected upon inspection. normal spoilage is 5 units. costs prior to inspection amount to $1,450 per unit and the spoiled units have a salvage value of $520 per unit. what is the cost per unit of the good units in job #4
Journal entries to correct defective work. Columbus Fabricators manufacture golf carts and other recreational equipment. One order from Wisconsin Wholesale Company for 1000 carts showed the following costs per unit: direct materials, $40, direct labor, $20, and factory overhead applied at 140% of direct labor cost if defective work is charged to a specific job and 150% if it is not. Final inspection revealed that wheels were assembled with improper bearings. The wheels were disassembled and the proper bearings inserted. The cost of correcting each defective cart consists of $2 added cost for bearings, $4 for labor, and factory overhead at the predetermined rate. Required: Prepare journal entries to record correction of the defective units and transfer of the work in process to finished goods if: (1) The Wisconsin Wholesale Company order is to be charged with the cost of defective units. (2) The cost of correcting the defective work is not charged to Wisconsin Wholesale Company order.