Question: - 19-23
Req 1
Total Manufacturing cost 800,000
Total manufactured globes 20,000
Unit cost 40
Req 2
Cost of 750 spiled unites 750*40
Cost 30,000
Req 3
Increase in Unit Cost of Good Globes if Spoilage is Normal
In this case, the cost of spoilage is distributed among the cost of good units.
Good units = 20,000 - 750 = 19,250
The total cost of manufacturing 800,000
Good units iun this case 19250
Per unit cost 41.56
Increase in Unit Cost of Good Globes if Spoilage is Normal 1.56
(41.56-40)
Req 4
Particulars Debit
Loss from Abnormal Spoilage (750*40) 30,000
TO WIP control
Question - 19-32
WEIGHTED AVERAGE METHOD
Prelim Calculations: - Good Units = Units completed & Transferred Out
WIP- May 1 7500
Started In May 18500
Unites to A/C for 26000
Good Units C & TO 15000
Ending Inventory 10000
Accounted for 25000
Unaccounted units 1000
Normal spoilage 750
Abnormal Spoilage 250
FLOW OF PRODUCTION
Physical Units
WIP, May 1 7500
Started in May 18500
Units to A/c for 26000
Good Units C& TO 15000
Normal Spoilage 750
Abnormal Spoilage 250
WIP, ending inventory, May 31 10000
Units Accounted for 26000
Summary of costs Total Production
WIP Beg balance 22250
Costs added in May 13975
Total cost to a/c for $ 36,225.00
Cost per EU DM
Cost to A/c for $ 1,600.00
EU 16000
Cost per EU $ 0.10
Assigment of costs - WA Method
Total
Particulars
Goods Units C & TO 25800
Note:
Normal Spoilage 1,290
Note:
Total cost of Goos Units - C & TO 27,090
Abnormal Spoilage 430
Note:
WIP: May 31 ending 8700
Cost accounted for $ 36,220.00
Question: 19-38
WIP, Beg, March 14,000
Started in March 120,000
Spoiled units 10,000
WIP, Ending, March 11,000
NORMAL Spoilage 6% of good units
WIP, Beg, March 100%
WIP, Ending, March 100%
FLOW OF PRODUCTION
Physical Units
WIP, Beg, March 14000
Started in May 120000
Units to A/c for 134000
b1: WIP, Beg, March 14000
B2: Good Units Started & C & TO March 99000
Normal Spoilage(113000*6%) 6780
Abnormal Spoilage (10000 - 6780) 3220
B3: WIP, ending inventory, May 31 11000
Units Accounted for 134000
Question: 19-42
Scrap sold for $ 300
Scrap returned to storeroom No journal entry
a) Debit
Cash 300
TO Scarap Revenue
b) Debit
Cash 300
TO WIP Control (Job#10)
c) Debit
Cash 300
TO MOH Control
d) Debit
Material Inventory 300
TO WIP Control (Job#10)
Debit
Cash 300
To Material Inventory
Question: 19-46
Normal spoilage is 6% of the good units passing
inspection in a forging process. In March, a total of
10,000 units were spoiled. Other data include units
started during March, 120,000; work-in-process,
beginning, 14,000 units (20% completed for conversion
costs); and work-in-process, ending, 11,000 units (70%
completed for conversion costs). Compute the normal
and abnormal spoilage in units, assuming the inspection
point is at (a) the 15% stage of completion, (b) the 40%
stage of completion, and (c) the 100% stage of
completion.
good units.
Credit
30,000
d Out
<- 26000 - 25000
(15000*5%)
(1000-750)
Equivalent Units
DM CC Transferred In costs
15000 15000 15000
750 750 750
250 250 250
0 2500 10000
16000 18500 26000
DM CC Transferred in cost
0 6125 16125
$ 1,600.00 $ 12,375.00
$ 1,600.00 $ 18,500.00 16125
CC Transferred in cost
$ 18,500.00 16125
18500 26000
$ 1.00 0.62
DM CC
Transferred in cost
1500 15000 9300
(15000*.10) (15000*1) 15000*.62
$ 75.00 $ 750.00 465
(750*.10) (750*1) (750*.62)
$ 1,575.00 $ 15,750.00 9765
$ 25.00 $ 250.00 155
(250*.10) (250*1) (250*.62)
0 2500 6200
0 (2500*1) (10000*.62)
$ 1,600.00 $ 18,500.00 16120
good units
20%
70%
Inspection point - degree of completion
15% 40% 100%
110000 124000 113000
6600 7440 6780
3400 2560 3220
Credit
300
Credit
300
Credit
300
Credit
300
Credit
300
19-30 (CW)
WEIGHTED AVERAGE METHOD
Prelim Calculations: - Good Units = Units completed & Transferred Out
WIP- May 1 2500
Started In May 22500
Unites to A/C for 25000
Units C & TO 18500
Ending Inventory 4000
Accounted for 22500
Unaccounted units 2500 <- 25000 - 22500
Normal spoilage 1850 (1850*10%)
Abnormal Spoilage 650 (2500-1850)
FLOW OF PRODUCTION Equivalent Units
Physical Units DM CC
WIP, May 1 2500
Started in May 22500
Units to A/c for 2500
Good Units C& TO 18500 18500 18500
Normal Spoilage 1850 1850 1850
Abnormal Spoilage 650 650 650
WIP, ending inventory, May 31 4000 4000 1000
Units Accounted for 25000 25000 22000
Summary of costs Total Production DM CC
WIP Beg balance 4500 2500 2000
Costs added in May 42500 $ 22,500.00 $ 20,000.00
Total cost to a/c for 47000 $ 25,000.00 $ 22,000.00
Cost per EU DM CC
Cost to A/c for $ 25,000.00 $ 22,000.00
EU 25000 22000
Cost per EU $ 1.00 $ 1.00
Assigment of costs - WA Method
Total DM CC
Particulars
Goods Units C & TO 37000 18500 18500
Note: (18500*1) (18500*1)
Normal Spoilage 3,700 $ 1,850.00 $ 1,850.00
Note: (1850*1) (1850*1)
Total cost of Goos Units - C & TO 40,700 $ 20,350.00 $ 20,350.00
Abnormal Spoilage 1,300 $ 650.00 $ 650.00
Note: (650*1) (650*1)
WIP: May 31 ending 5000 4000 1000
(4000*1) (1000*1)
Cost accounted for $ 47,000.00 $ 25,000.00 $ 22,000.00
<- 4000 *25%