Direct materials $ 50,000Conversion costs 30,000Direct materials added 100,000Conversion costs added 140,000
42. What is the number of total spoiled units?
dCraft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generallyconstitute 5% of the good units. Data for December 20x3 are as follows:WIP, beginning inventory 12/1/20x3 10,000 unitsDirect materials (100% complete)Conversion costs (75% complete)Started during December 40,000 unitsCompleted and transferred out 12/31/20x3 38,400 unitsWIP, ending inventory 12/31/20x3 8,000 unitsDirect materials (100% complete)Conversion costs (65% complete)Costs for December:WIP, beginning Inventory:Direct materials $ 50,000Conversion costs 30,000Direct materials added 100,000Conversion costs added 140,000
43. Normal spoilage totals
cCraft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generallyconstitute 5% of the good units. Data for December 20x3 are as follows:WIP, beginning inventory 12/1/20x3 10,000 unitsDirect materials (100% complete)Conversion costs (75% complete)Started during December 40,000 unitsCompleted and transferred out 12/31/20x3 38,400 unitsWIP, ending inventory 12/31/20x3 8,000 unitsDirect materials (100% complete)Conversion costs (65% complete)Costs for December:WIP, beginning Inventory:Direct materials $ 50,000Conversion costs 30,000Direct materials added 100,000Conversion costs added 140,000
44. Abnormal spoilage totals
cCraft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generallyconstitute 5% of the good units. Data for December 20x3 are as follows:WIP, beginning inventory 12/1/20x3 10,000 unitsDirect materials (100% complete)Conversion costs (75% complete)Started during December 40,000 unitsCompleted and transferred out 12/31/20x3 38,400 unitsWIP, ending inventory 12/31/20x3 8,000 unitsDirect materials (100% complete)Conversion costs (65% complete)Costs for December:WIP, beginning Inventory:Direct materials $ 50,000Conversion costs 30,000Direct materials added 100,000Conversion costs added 140,000
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- Spring '14
- CynthiaA.Sneed
- Cost Accounting, Pricing, Manufacturing Overhead Control, grouping of individual indirect cost items
