Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 18, Problem 18.20E
Normal and abnormal spoilage in units. The following data, in physical units, describe a grinding process for January:
| Work in process, beginning | 19,300 |
| Started during current period | 145,400 |
| To account for | 164,700 |
| Spoiled units | 12,000 |
| Good units completed and transferred out | 128,000 |
| Work in process, ending | 24,700 |
| Accounted for | 164,700 |
Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the good units passing inspection.
- 1. Compute the normal and abnormal spoilage in units.
Required
- 2. Assume that the equivalent-unit cost of a spoiled unit is $8. Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your answer.
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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:
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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?
Chapter 18 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 18 - Why is there an unmistakable trend in...Ch. 18 - Distinguish among spoilage, rework, and scrap.Ch. 18 - Normal spoilage is planned spoilage. Discuss.Ch. 18 - Costs of abnormal spoilage are losses. Explain.Ch. 18 - What has been regarded as normal spoilage in the...Ch. 18 - Units of abnormal spoilage are inferred rather...Ch. 18 - In accounting for spoiled units, we are dealing...Ch. 18 - Total input includes abnormal as well as normal...Ch. 18 - Prob. 18.9QCh. 18 - The unit cost of normal spoilage is the same as...
Ch. 18 - In job costing, the costs of normal spoilage that...Ch. 18 - The costs of rework are always charged to the...Ch. 18 - Abnormal rework costs should be charged to a loss...Ch. 18 - When is a company justified in inventorying scrap?Ch. 18 - How do managers use information about scrap?Ch. 18 - Prob. 18.16MCQCh. 18 - Which of the following is a TRUE statement...Ch. 18 - Healthy Dinners Co. produces frozen dinners for...Ch. 18 - Fresh Products, Inc. incurred the following costs...Ch. 18 - Normal and abnormal spoilage in units. The...Ch. 18 - Weighted-average method, spoilage, equivalent...Ch. 18 - Weighted-average method, assigning costs...Ch. 18 - FIFO method, spoilage, equivalent units. Refer to...Ch. 18 - FIFO method, assigning costs (continuation of...Ch. 18 - Weighted-average method, spoilage. LaCroix Company...Ch. 18 - FIFO method, spoilage. 1. Do Exercise 18-25 using...Ch. 18 - Spoilage, journal entries. Plastique produces...Ch. 18 - Recognition of loss from spoilage. Spheres Toys...Ch. 18 - Weighted-average method, spoilage. LogicCo is a...Ch. 18 - FIFO method, spoilage. Refer to the information in...Ch. 18 - Standard-costing method, spoilage. Refer to the...Ch. 18 - Spoilage and job costing. (L. Bamber) Barrett...Ch. 18 - Reworked units, costs of rework. Heyer Appliances...Ch. 18 - Scrap, job costing. The Russell Company has an...Ch. 18 - Weighted-average method, spoilage. World Class...Ch. 18 - FIFO method, spoilage. Refer to the information in...Ch. 18 - Weighted-average method, shipping department...Ch. 18 - FIFO method, shipping department (continuation of...Ch. 18 - Physical units, inspection at various levels of...Ch. 18 - Spoilage in job costing. Jellyfish Machine Shop is...Ch. 18 - Rework in job costing, journal entry (continuation...Ch. 18 - Scrap at time of sale or at time of production,...Ch. 18 - Physical units, inspection at various stages of...Ch. 18 - Weighted-average method, inspection at 80%...Ch. 18 - Job costing, classifying spoilage, ethics....
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