1. Is the spoilage a normal or an abnormal spoilage? - Normal or Abnormal2. What is the EUP for materials?3. How many units were transferred out?4. What is the EUP for conversion costs? Diligent Manufacturing produces product 2AB and uses the FIFO method in its EUP computations. All directmaterial is entered at the beginning of the process. Some shrinkage occurs during the production process, butany shrinkage of less than 3 percent to be normal. October 2021 data are as follows:Beginning WIP inventory(60% complete as to material; 80% complete as to conversion)Started during OctoberEnding WIP inventory(40% complete as to material; 20% complete as to conversion)20,000 pounds180,000 pounds15,000 poundsFSDuring the month 4,800 gallons were spoiled.

Since you have asked multiple questions under a single question as theory regarding spoilage and…

Answered: 1. Is the spoilage a normal or an…

Business

Accounting

1. Is the spoilage a normal or an abnormal spoilage? - Normal or Abnormal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following statements best describes conversion costs? OA. Conversion costs are all…

A: Process costing is a term used in cost accounting to describe one method for collecting and…

Q: How does the variable cost per unit change as the level of activity (or cost driver) increases? Why?

A: A variable cost changes is directly proportional to the change in the level of activity or cost…

Q: Which of the following is called minimum point of production at which total cost is recovered:…

A: The margin of safety sales is calculated as difference between current sales and break even sales.

Q: Which of the following is called minimum point of production at which total cost is recovered:

A: Total cost recovery is the point under which the entity does not make any profit or loss That is…

Q: Which one of the following is a fixed cost? a. Raw material costs b. Salary with commission c.…

A: A fixed cost is one that does not adjust in the short term, even though a company's sales volume or…

Q: Which of the following is not included in the calculation of the lifecycle cost of a product?…

A: Cost of disposal refers to the additional expense incurred as a result of the disposal of an asset,…

Q: Fixed costs per unit _______. .1. can be estimated by the high-low method 2. remains the same when…

A: The high-low technique tries to distinguish between fixed and variable costs. The highest level of…

Q: Why is JIT costing sometimes called backflush costing?

A: Just-in-time manufacturing system: Just-in-time OIT) manufacturing system is an approach to…

Q: 6. What are costs that vary in proportions to changes in the activity base?

A: In cost accounting, different types of costs are incurred and accounted for. Some costs do not…

Q: Which of the following is an example of an indirect cost? Multiple Choice Cost of labor Cost of…

A: Indirect Cost are expenses other than direct expenses are known as indirect expenses. These cannot…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

Q: Describe cost depletion and percentage depletion. Whyis the percentage depletion method permitted?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: Which of the following statements is correct about fixed costs? a. Fixed costs vary on per unit…

A: SOLUTION EXPLANATION- 1-FIXED COST DOES NOT CHANGE BASED ON ACTIVITY. 2-THE COST WILL STAY THE SAME…

Q: 17. What are costs that remain the same in total dollar amount as the activity base changes?

A: The costs that remain same in total dollar amount is Both cost per unit and activity base are…

Q: What are the arguments for and against "backflush" costing?

A: Arguments for and against Backflush costing: Backflush costing system is that the method of…

Q: 7. Which of the following is an example of a mixed cost? a) Direct labor cost b) Rent expense c) Raw…

A: Mixed cost is a cost combination of variable and fixed costs. Mixed cost accounting fixed cost and…

Q: 2) Which of the following is the type of cost calculated with a scientific and engineering approach…

A: A company will incur various costs to earn revenue. The costs can be either direct or indirect costs…

Q: What is the amount of the difference between the variable costing and absorption costing net…

A: Sales 3,311,000 Variable costs Direct Materials 1,161,000…

Q: How would the equation for total costs be written using the following? y = total costs v =…

A: Variable costs are costs that change with change in volume of production . Whereas, Fixed costs…

Q: How was total cost (a) found for #1?

A: Total cost for any product or service is calculating by taking sum of variable cost of the total…

Q: Within the relevant range, A B D variable cost per unit increases as production decreases variable…

A: VARIABLE COST Variable cost are costs that changes as the Volume Changes. Variable Cost is…

Q: Costs that vary in proportion to volume changes but not directly are considered

A: Mixed Costs are the costs in which some of its component is fixed, i.e. it doesn't change with the…

Q: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…

A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…

Q: What effect does an increase in volume have on—c. Total fixed costs?

Q: why does fixed costs remain the same in total dollar amount but increases per unit as the level of…

A: Fixed costs means those costs which remain fixed in total dollar amount as the level of activity…

Q: Machine Replacement Decision A company is considering replacing an old piece of machinery, which…

A: Required (a)Differential AnalysisContinue with Old Machine (Alt. 1) or Replace Old Machine (Alt.…

Q: What are some costs associated with high inventories? With lowinventories?

A: Cost associated with inventories are also known as inventory cost. Inventory cost can be classified…

Q: There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of…

A: Semi-variable cost includes both fixed and variable costs. In this, most of the part is fixed but…

Q: Why is it difficult to assign a dollar figure to an intangible cost? Can it ever be done? Explain…

Q: On what do total line haul costs and line haul costs per hundredweight depend? What two wayscan…

A: Haul Costs are the transportation costs of delivering products from one place to another. It doesn't…

Q: Which of the following costs change in total directly and proportionately with respect to the…

A: The objective of the question is to identify the type of cost that changes in total directly and…

Q: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs: These are the costs that remain constant in total dollar amount irrespective to the…

Q: Each incorrect answer cancels out each correcr one. Indicate which of the following statements are…

A: 1. Indirect costs are those factors whose increase or decrease is not related to changes in the…

Q: Electirical costs to light the production facility, is it a indirect material or direct material?…

A: Direct material: Material which is used in manufacturing process and also inseparable from the…

Q: In Make or buy decision ,irrelevant costs are : Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Question

1. Is the spoilage a normal or an abnormal spoilage? - Normal or Abnormal

2. What is the EUP for materials?

3. How many units were transferred out?

4. What is the EUP for conversion costs?

Diligent Manufacturing produces product 2AB and uses the FIFO method in its EUP computations. All direct
material is entered at the beginning of the process. Some shrinkage occurs during the production process, but
any shrinkage of less than 3 percent to be normal. October 2021 data are as follows:
Beginning WIP inventory
(60% complete as to material; 80% complete as to conversion)
Started during October
Ending WIP inventory
(40% complete as to material; 20% complete as to conversion)
20,000 pounds
180,000 pounds
15,000 pounds
FS
During the month 4,800 gallons were spoiled.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A price that can't be quickly or efficiently linked to a cost object is referred to as: Additional charges may apply. The total cost Costs incurred indirectly Cost of conversion.
The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal loss d. Scrap
Why might it be misleading to show the fixed costs on a per unit basis?
variable costs change in direct proportion to a change in the activity level. True or False?
When using the high-low method to estimate costs, the formula “Change in Cost divided by Change in Units” (or “Change in Total Cost divided by Change in Activity Level”) is used to estimate the: Fixed cost per unit Mixed cost per unit Profit per unit Indirect cost per unit Variable cost per unit Differential cost per unit Opportunity cost per unit
How does the length of the time horizon affect the classification of a cost as fixed or variable? What is the meaning of short run? Long run?
The computation for the shutdown point is A. Avoidable fixed costs ÷ unit contribution margin B. Differential fixed costs ÷ contribution margin ratio C. (Avoidable fixed costs + additional cost) ÷ unit contribution margin D. (Avoidable fixed costs – additional cost) ÷ unit contribution margin
How do fixed costs create difficulties in costing units of product? please explain in details.
In incremental analysis, the only costs to be considered are O relevant costs. sunk costs. O variable costs. O manufacturing costs.
Show how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the same
What is the result of dividing the depletable amount by the estimated life in terms of units of output?
Then, how about the fixed cost and the shipping cost?