The following data, in physical units, describe a grinding process for January:Work in process, beginning 19,000Started during current period 50,000To account for 169,000Spoiled units 12,000Good units completed and transferred out 132,000Work in process, ending 25,000Accounted for 169,000Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the goodunits passing inspection.Required:1. Compute the normal and abnormal spoilage in units.2. Assume that the equivalent-unit cost of a spoiled unit is $10. Compute theamount of potential savings if all spoilage were eliminated, assuming thatall other costs would be unaffected. Comment on your answer.

The following data, in physical units, describe a grinding process for January:Work in process, beginning 19,000Started during current period 50,000To account for 169,000Spoiled units 12,000Good units completed and transferred out 132,000Work in process, ending 25,000Accounted for 169,000Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the goodunits passing inspection.Required:1. Compute the normal and abnormal spoilage in units.2. Assume that the equivalent-unit cost of a spoiled unit is $10. Compute theamount of potential savings if all spoilage were eliminated, assuming thatall other costs would be unaffected. Comment on your answer.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 5PB: Ardt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units...

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The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units one-fourth completed at a cost of 2,500 for materials, 1,400 for labor, and 1,800 for overhead. Production costs for the monthmaterials, 130,000; labor, 70,000; and factory overhead, 82,000. Units completed and transferred to stock45,000. Work in process, end of month5,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
Ardt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units before ending the month with 3.000 u flits that were 100% complete with regard to materials and 80% complete with regard to conversion costs. The cost per unit of material is $5.45, and the cost per unit for conversion is $6.20 per unit, Using the weighted-average method, prepare the companys process cost summary for the month.
The following information is available for ABOC Company for April: Started this month 80,000 units Beginning WIP (60% incomplete) 7,500 units Normal spoilage 1,100 units Abnormal spoilage 900 units Ending WIP (70% complete) 13,000 units units 72,500 Transferred out Beginning Work in Process Costs: Material P 6,875 Conversion 17,210 Current Costs: Material P120,000 Conversion 348,870 All materials are added at the start of production and the inspection point is at the 80% conversion. How many units were started and completed?
Elmoe has the following information for the month of October, its first month of operations: Work in Process October 1 Units completed & transferred out in October Work in process October 30 100% completed for materials 80% completed for conversion costs 120,000 32,000 Costs added in October S145,900 $96,000 Materials Direct Labor Overhead S108,000 Required a) Determine the equivalent units of production for October. b) Determine the cost of the ending work-in-process. c) Determine the cost of goods completed. d) What is meant by the term equivalent full units?
The following information is available for Jones Company for April: Started this month 80,000 units Beginning WIP (40% complete) 7,500 units Normal spoilage (discrete) 1,100 units Abnormal spoilage 900 units Ending WIP (70% complete) 13,000 units Transferred out 72,500 units Beginning Work in Process Costs: Material $10,400 Conversion 13,800 Current Costs: Material $120,000 Conversion 350,000 All materials are added at the start of production and the inspection point is at the end of the process. The following information is available for Jones Company for April: Started this month 80,000 units Beginning WIP (40% complete) 7,500 units Normal spoilage (discrete) 1,100 units Abnormal spoilage 900 units Ending WIP (70% complete) 13,000 units…
The Smelting Department of Kiner Company has the following production and cost data for October: Beginning work in process (30% incomplete as to conversion cost) 20,000 units Units transferred out 66,000 units Ending work in process (40% incomplete as to conversion cost) 30,000 units Abnormal lost units 4,000 units Materials are added at the beginning of the process. Lost units are detected at the end of the process. What is the equivalent units of conversion cost for October?
ABC Company has the following information for the current month: Units started 175,000 WIP beginning(65% to be done) 35,000 Total spoilage 14,875 Spoilage within tolerance level 6,125 WIP ending (20% incomplete) 25,375 Transferred out ? Beginning work in process costs: Material 46,250 Conversion 60,675 Current Costs: Material 170,625 Conversion 265,335 All materials are added at the start of the production process. ABC Corporation inspects goods at 100% completion as to conversion. Using the method…
Watkins Company had the following production for the month: Units Work-in-process, beginning 6,000 Started during the month 24,000 Completed and transferred to finished goods 18,000 Spoilage incurred 3,000 Work-in-process, ending 9,000 Materials are added at the beginning of the process. As to conversion cost, work-in-process was 20% complete at the beginning and 70% complete at the end of the month. Spoilage is detected at the end of the process. 1. Using the weighted-average method, the equivalent units for the month, with respect to conversion cost, were: 2. Assume that the spoilage for the month included abnormal spoilage of 1,000 units, and that the total costs incurred to date for materials and conversion costs are $30,000 and $54,600, respectively. What is the amount…
Goode Company has the following production data for selected months. Ending Work in Process Beginning Work in Process Units % Complete as to Conversion Cost Month Transferred Out Units January 36,500 10,600 44 % March 41,000 8,200 73 July 50,800 18,300 24 Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the process.
The following data were taken from the records of Winner Company for the month of October:Work in process, October 1   10,000 unitsStarted during October 40,000 unitsCompleted and transferred to next department 33,000 unitsAbnormal spoilage incurred   2,000 unitsWork in process, October 31   15,000 unitsMaterials are added after quality control inspection at the end of the process. As to conversion cost, the beginning work in process was 70% complete while the ending work in process is 40% complete.Using the weighted average method, the equivalent units of production for conversion was?
The following data were taken from the records of Winner Company for the month of October:Work in process, October 1   10,000 unitsStarted during October 40,000 unitsCompleted and transferred to next department 33,000 unitsAbnormal spoilage incurred   2,000 unitsWork in process, October 31   15,000 unitsMaterials are added after quality control inspection at the end of the process. As to conversion cost, the beginning work in process was 70% complete while the ending work in process is 40% complete.1.) Using the weighted average method, the equivalent units of production for conversion was: 2.) Using the FIFO method, the equivalent units of production for materials was:
The following data were taken from the records of Winner Company for the month of October:Work in process, October 1   10,000 unitsStarted during October 40,000 unitsCompleted and transferred to next department 33,000 unitsAbnormal spoilage incurred   2,000 unitsWork in process, October 31   15,000 unitsMaterials are added after quality control inspection at the end of the process. As to conversion cost, the beginning work in process was 70% complete while the ending work in process is 40% complete.Using the FIFO method, the equivalent units of production for materials was:Using the weighted average method, the equivalent units of production for conversion was: