Determine the amount charged to Finished Goods for the period and the costs of spoilage charged to revenue. Daily Custom Company manufactures plastic chairs in its Processing Department. Direct materials are includedat the inception of the process. Conversion costs are incurred evenly throughout the process. The machinebroke down at 60% stage of completion due to inefficient operator that caused some of the units in process tobe spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided forSeptember of the current year are as followsWork in process, beg.StartedCompleted & transferredWork in process, endCosts:Work in Process, beg.MaterialsConversion costsAdded during the period:MaterialsConversion costs30,000 units80,000 units86,000 units20,000 unitsP70,00040,000P160,000122,480Mat-100%; CC-89.5%Mat-100%; CC-75%

statement of equivalent unitsinputoutputopening wip30,000completed and transferred86,000unit…

Answered: Determine the amount charged to…

Business

Accounting

Determine the amount charged to Finished Goods for the period and the costs of spoilage charged to revenue.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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Question

Determine the amount charged to Finished Goods for the period and the costs of spoilage charged to revenue.

Daily Custom Company manufactures plastic chairs in its Processing Department. Direct materials are included
at the inception of the process. Conversion costs are incurred evenly throughout the process. The machine
broke down at 60% stage of completion due to inefficient operator that caused some of the units in process to
be spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided for
September of the current year are as follows
Work in process, beg.
Started
Completed & transferred
Work in process, end
Costs:
Work in Process, beg.
Materials
Conversion costs
Added during the period:
Materials
Conversion costs
30,000 units
80,000 units
86,000 units
20,000 units
P70,000
40,000
P160,000
122,480
Mat-100%; CC-89.5%
Mat-100%; CC-75%

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