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 thecheck 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 creditedto the process account. The cost of abnormal loss, net of scrap value, is written offto the profit and loss account. Data for April 2015 are as follows:Materials4,000 units P16,000Conversion costs24,000Output to finished goods 3,000 unitsAssuming 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?P32,400a.b.P33,333C.P36,000d.P38,880 of 100 vehicle parts are spoiled. Costs assigned prior to the inspection pointP10,000 per part. When the spoilage is detected, the spoiled goods were valuedby the specifications of a particular job.21. Refer to the data for Jack Company. If the spoilage is a normal characteristic of theproduction process and Jack produced a total of 250 good parts from all jobs duringthe month, how much is the normal spoilage cost per good unit?a.P 40b.P160с.P200d.22. Refer to the data for Jack Company. If the spoilage is a normal characteristic of theproduction process and Jack produced a total of 250 good parts from all jobs duringthe month, how much is the cost per good unit for Job #901?P421а.P 9,840b.P10,000с.P10,160d.P10,686

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Zumiez Company produces a small standard component in a process operation. 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? а. P32,400 b. P33,333

Zumiez Company produces a small standard component in a process operation. 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? а. P32,400 b. P33,333

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 abnormal spoilage is 300 units and the cost per equivalent unit is $2 for direct materials and $3 for conversion. The inspection point is at the end of processing. There are 600 units in ending Work-in-Process and normal spoilage is 200 units. What are the equivalent units for material and conversion using the weighted -average method and the FIFO method? Please provide an explanation of the calculation.
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