Inter Manufacturing Company manufactures expensive chairs. The following data relates to January 20x1. Beginning Work in...

Inter Manufacturing Company manufactures expensive chairs. The following data relates to January 20x1.
Beginning Work in Process (1-1-x1) (BWIP)	3,000		Units
Added during the month	13,000		Units
Completed and transferred out (CTO)	14,000		Units
Ending Work in Process (31-1-x1) (EWIP)	2,000		Units
Percentage of completion of conversion costs for BWIP & EWIP	80%
Costs added during January
	Total costs		Material costs
Beginning Work in Process (1-1-x1)	$60,000		$32,000
Costs added during January	$280,000		$135,000
Inter uses First In First Out (FIFO), and materials are added at the beginning of the process.
The inspection point, for spoilage units, occurs at the end of the production process
Spoilage is considered abnormal if it is greater than		2%	of CTO

Find normal spoilage and abnormal spoilage in units, total costs of CTO, and total cost of EWIP.

Solutions

Expert Solution

Input	Particulars	Phy units	Mat. Costs	Conv. Costs	Total
3000	Beg WIP	3000	0	600
13000	Started & Completed units	11000	11000	11000
	Transferred out (CTO)	14000	11000	11600
	Normal spoilage	0
	Abnormal spoilage	0
	End WIP	2000	2000	1600
16000	Equivalent units		13000	13200
	Costs incurred		135000	145000
	Cost per Eq unit		10.38	10.98
	Total Cost of Beg WIP:
	Beg cost		32000	28000	60000
	add: during Jan		0	6591	6591
	Total Cost of Beg WIP		32000	34591	66591
	Cost of Started & Completed		114231	120833	235064
	Cost of Normal spoilage	280	2908	3076	5983
	Cost of Transferred out (CTO)		149138	158500	307638
	Cost of ending WIP	1720	17862	18894	36755


	REQUIREMENT:
	Normal spoilage, units	280
	Abnormal spoilage, units	0
	Cost of CTO, $	307638
	Cost of Ending WIP, $	36755

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

The following information relates to the inventory transactions of Thames Company for 2018. January 1 Beginning...

The following information relates to the inventory transactions of Thames Company for 2018. January 1 Beginning inventory, 90 units @ $75/unit March 8 Purchased 160 units @ $80/unit October 24 Purchased 100 units @ $90/unit On August 19, the Company sold 225 units at a selling price of $115/unit A. Number of units remaining in ending inventory. B. Compute the cost of goods sold and ending inventory under each of the following methods: LIFO FIFO Weighted average cost C. Determine...

i. Cheaper manufacturing company developed the following data: Beginning work in process inventory $6000 Direct material...

i. Cheaper manufacturing company developed the following data: Beginning work in process inventory $6000 Direct material used 360,000 Actual overhead 420,000 Overhead applied 405,000 Total manufacturing cost 960,000 Ending work in process 45,000 How much are the direct labour costs for the period? a. $175,000 b. $195,000 c. $200,000 d. $180,000 ii. What is the production cost report used for? a. It is an external report provided to shareholders. b. It shows costs charged to a department and costs accounted...

Vega Manufacturing Company developed the following data: Beginning work in process inventory: $900,000 Direct materials used:...

Vega Manufacturing Company developed the following data: Beginning work in process inventory: $900,000 Direct materials used: $800,000 Actual overhead: $1,000,000 Overhead applied: $800,000 Direct labor: $1,300,000 Ending work in process: $1,600,000 Vega's total manufacturing costs for the period is

The following data relates to ABC Ltd: • Profit for the year ended 30 June 20X1,...

The following data relates to ABC Ltd: • Profit for the year ended 30 June 20X1, $500,000. • On 31 March 20X1, the directors decided to pay an interim cash dividend of $100,000. • On 7 April 20X1, the interim dividend was paid. • For final dividends, the company’s constitution provides that the directors can recommend a dividend to be subsequently declared by a resolution of the members in a general meeting. • The directors recommended a final dividend of...

he following data relates to ABC Ltd: • Profit for the year ended 30 June 20X1,...

he following data relates to ABC Ltd: • Profit for the year ended 30 June 20X1, $500,000. • On 31 March 20X1, the directors decided to pay an interim cash dividend of $100,000. • On 7 April 20X1, the interim dividend was paid. • For final dividends, the company’s constitution provides that the directors can recommend a dividend to be subsequently declared by a resolution of the members in a general meeting. • The directors recommended a final dividend of...

Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,300 units, 1/10 complete...

Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,300 units, 1/10 complete Materials $17,500 Units transferred out 54,500 Conversion costs 14,160 $31,660 Units started 50,800 Materials 227,731 Ending work in process 11,600 units, 1/5 complete Labor 67,200 Overhead 80,577 Exercise 3-13 The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process...

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was...

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 90 units at $95 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 214-unit purchase at $108 per unit; the second was a 252-unit purchase at $114 per unit. During the period, it sold 354 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming...

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was...

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 70 units at $30 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 162-unit purchase at $34 per unit; the second was a 200-unit purchase at $36 per unit. During the period, it sold 276 chairs. Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that...

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was...

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 50 units at $75 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 218-unit purchase at $85 per unit; the second was a 236-unit purchase at $90 per unit. During the period, it sold 340 chairs. Determine the amount of products costs that would be allocated to cost of goods sold and ending inventory, assuming that...

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was...

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 170 units at $42 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 295-unit purchase at $47 per unit; the second was a 365-unit purchase at $49 per unit. During the period, it sold 515 chairs Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that...

Subjects