Question
In: Accounting
Rosseaux manufactures chemicals in a continuous process. The company combines various materials in a specially configured...
Rosseaux manufactures chemicals in a continuous process. The company combines various materials in a specially configured machine at the beginning of theprocess, and conversion is considered uniform through the period. Occasionally, the chemical reactions among the materials do not work as expected and the output is then considered spoiled.
Normal spoilage is 5% of the good units that pass inspection. The following information pertains to March 2017:
|
Beginning inventory |
3,000 units (100% complete for materials; |
|
25% complete for conversion costs) |
|
|
Units started |
32,000 |
|
Units in ending work in process |
2,600 (100% complete for materials; 70% |
|
complete for conversion costs) |
|
|
Rosseaux had 2,400 spoiled units in March 2017. |
|
requirement
Compute the normal and abnormal spoilage in units, assuming the inspection point is at (a) the 20% stage of completion, (b) the 45% stage of completion, and (c) the100% stage of completion.
Calculate the units to account for, then calculate the units accounted for.
|
Inspection |
Inspection |
Inspection |
|
|
Flow of Production |
at 20% |
at 45% |
at 100% |
|
Work in process, beginning |
|||
|
Started during March |
|||
|
To account for |
Solutions
Expert Solution
| Calculation of normal & abnormal spoilage in unit at various levels | ||||||
| Particulars | Inspection | Inspection | inspection | |||
| Flow of production | at 20% | at 45% | at 100% | |||
| Work in process beninning | 3000 | 3000 | 3000 | |||
| Started during march | 32000 | 32000 | 32000 | |||
| Toaccount for | 35000 | 35000 | 35000 | |||
| Good unit completed & transferred out | 30000 | 30000 | 30000 | |||
| Normal spoilage (a) | 1480 | 1630 | 1500 | |||
| abnormal spoilage 2400-(a) | 920 | 770 | 900 | |||
| Work in process ending | 2600 | 2600 | 2600 | |||
| Accounted for | 35000 | 35000 | 35000 | |||
| Good unit completed & tranferred out | ||||||
| Beginning inventory | 3000 | |||||
| add: unit started | 32000 | |||||
| less: spiled unit | -2400 | |||||
| less: inventory at the end | -2600 | |||||
| Good unit completed & tranferred out | 30000 | |||||
| Calculation of noramal spoilage | ||||||
| unit started | 32000 | |||||
| less: spoiled unit | -2400 | |||||
| Good unit | 29600 | |||||
| Normal spoilage 5%*29600 | 1480 | |||||
| Normal spoilage = 5%*(35000-2400) = 1630 | ||||||
| Normal spoilage = 5% *30000= 1500 | ||||||
ekkarill92 answered 7 months agoRelated Solutions
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Suburbia Company manufactures a product through a continuous
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Production data:
In process, beginning of month
(20% converted)
1,000 units
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Completed and transferred to
finished goods
4,500 units
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1,500 units
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Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the...
Suburbia Company manufactures a product through a continuous
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Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
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4,500 units
In process, end of month (60%
converted)
1,500 units
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(Materials $3,000; Conversion Costs: $18,360)
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Suburbia Company manufactures a product through a continuous
single-step process. All materials are added at the beginning of
processing. Production and cost data for the company for February
2016 are as follows:
Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
finished goods
4,500 units
In process, end of month (60%
converted)
1,500 units
Manufacturing costs:
Work in process, beginning
(Materials $3,000; Conversion Costs: $18,360)
$21,360
Materials
$45,000
Direct...
Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the...
Suburbia Company manufactures a product through a continuous
single-step process. All materials are added at the beginning of
processing. Production and cost data for the company for February
2016 are as follows:
Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
finished goods
4,500 units
In process, end of month (60%
converted)
1,500 units
Manufacturing costs:
Work in process, beginning
(Materials $3,000 [≈ Weekend trip for two to Hawaii];...
1) Suburbia Company manufactures a product through a continuous single-step process. All materials are added at...
1)
Suburbia Company manufactures a product through a continuous
single-step process. All materials are added at the beginning of
processing. Production and cost data for the company for February
2016 are as follows:
Production data:
In process, beginning of month
(20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to
finished goods
4,500 units
In process, end of month (60%
converted)
1,500 units
Manufacturing costs:
Work in process, beginning
(Materials $3,000; Conversion Costs: $18,360)
$21,360
Materials
$45,000...
Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced...
Dover Chemical Company manufactures specialty chemicals by a
series of three processes, all materials being introduced in the
Distilling Department. From the Distilling Department, the
materials pass through the Reaction and Filling departments,
emerging as finished chemicals.
The balance in the account Work in Process—Filling was as
follows on January 1:
Work in Process—Filling Department
(3,400 units, 70% completed):
Direct materials (3,400 x $16.80)
$57,120
Conversion (3,400 x 70% x $10.90)
25,942
$83,062
The following costs were charged to Work...
Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced...
Dover Chemical Company manufactures specialty chemicals by a
series of three processes, all materials being introduced in the
Distilling Department. From the Distilling Department, the
materials pass through the Reaction and Filling departments,
emerging as finished chemicals.
The balance in the account Work in Process—Filling was as
follows on January 1:
Work in Process—Filling Department
(4,200 units, 70% completed):
Direct materials (4,200 x $16.2)
$68,040
Conversion (4,200 x 70% x $10.6)
31,164
$99,204
The following costs were charged to Work...
Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced...
Dover Chemical Company manufactures specialty chemicals by a
series of three processes, all materials being introduced in the
Distilling Department. From the Distilling Department, the
materials pass through the Reaction and Filling departments,
emerging as finished chemicals.
The balance in the account Work in Process—Filling
was as follows on January 1:
Work in Process - Filing Department
(3,400 units, 60% completed)
Direct Materials (3,400 x $9.58)
$32,572
Conversion (3,400 x $3.90)
$ 7,956
TOTAL
$40,528
The following costs were charged...
Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced...
Dover Chemical Company manufactures specialty chemicals by a
series of three processes, all materials being introduced in the
Distilling Department. From the Distilling Department, the
materials pass through the Reaction and Filling departments,
emerging as finished chemicals.
The balance in the account Work in Process—Filling was as
follows on January 1:
Work in Process—Filling Department
(3,400 units, 70% completed):
Direct materials (3,400 x $16.80)
$57,120
Conversion (3,400 x 70% x $10.90)
25,942
$83,062
The following costs were charged to Work...
Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced...
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series of three processes, all materials being introduced in the
Distilling Department. From the Distilling Department, the
materials pass through the Reaction and Filling departments,
emerging as finished chemicals.
The balance in the account Work in Process—Filling was as
follows on January 1:
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(4,100 units, 80% completed):
Direct materials (4,100 x $17.2)
$70,520
Conversion (4,100 x 80% x $11.2)
36,736
$107,256
The following costs were charged to Work...
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