Oehkle Inc. produces paint in a process in which spoilage occurs continually. Spoilage of 2 percent or
Question:
Oehkle Inc. produces paint in a process in which spoilage occurs continually. Spoilage of 2 percent or fewer of the gallons of raw material placed into production is considered normal. The following operating statistics are available for June 2010:
Beginning WIP Inventory (60% complete as to material;
70% complete as to conversion) .......... 16,000 gallons
Started during June ................360,000 gallons
Ending WIP Inventory (40% complete as to material;
20% complete as to conversion) ........... 8,000 gallons
Spoiled ..................... 2,800 gallons
a. How many gallons were transferred out?
b. What are the FIFO equivalent units of production for material? For conversion?
Step by Step Answer:
a b Units Material Conversion Beginning inventory 60 70 16000 Gallons started 360000 Gallons to ac...View the full answer
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
