XYZ Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Inspection occurs when units are completed. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows: WIP, beginning inventory 12/1/2017 Direct materials (100% complete) Conversion costs (20% complete) Started during December Completed and transferred out 12/31/2017 WIP, ending inventory 12/31/2017 Direct materials (100% complete) Conversion costs (80% complete) 17,600 units 60,900 units 58,200 units 18,000 units
XYZ Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Inspection occurs when units are completed. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows: WIP, beginning inventory 12/1/2017 Direct materials (100% complete) Conversion costs (20% complete) Started during December Completed and transferred out 12/31/2017 WIP, ending inventory 12/31/2017 Direct materials (100% complete) Conversion costs (80% complete) 17,600 units 60,900 units 58,200 units 18,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:XYZ Concept manufactures small tables in its Processing Department. Direct materials are added at the
initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are
incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to
undetectable materials defects. Inspection occurs when units are completed. Spoiled units generally constitute
3% of the good units. Data for December 2017 are as follows:
WIP, beginning inventory 12/1/2017
Direct materials (100% complete)
Conversion costs (20% complete)
Started during December
Completed and transferred out 12/31/2017
WIP, ending inventory 12/31/2017
Direct materials (100% complete)
Conversion costs (80% complete)
17,600 units
60,900 units
58,200 units
18,000 units
Transcribed Image Text:Costs for December:
WIP, beginning Inventory:
Direct materials
Conversion costs
Direct materials added
Conversion costs added
Abnormal spoilage totals
O 540 units
O 554 units
O 528 units
O 690 units
$183,600
92,500
269,280
352,800
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