Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Before being transferred to Finished Goods Inventory, the steel chairs were inspected by Quality Assurance Officers and 40 were found to be spoiled. The

 

Before being transferred to Finished Goods Inventory, the steel chairs were inspected by Quality Assurance Officers and 40 were found to be spoiled. The spoiled items are too impractical and expensive to rework as it needs to be molded again, however these items can be salvages for P10 each. The company maintains a separate Spoiled Goods Inventory for defective products and chares the unrecoverable cost of spoilage to Factory Overhead Control (FOC) account. Required: (NOTE: NO peso sign, PUT comma) 1. failure. abnormal. Determine the cost to be transferred to Spoiled Goods Inventory. 2. Determine the cost of the job transferred to finished goods if the spoilage was due to internal Determine the cost of the job transferred to finished goods if the spoilage was considered to be 3. 4. Determine the cost of the job transferred to finished goods to the customer if the spoilage was due to sudden change of customer's specification and not by the inspection of the Quality Assurance officers. Question 25 Raghnall Electronics Inc manufactures gauges and instruments for aircraft. During the current year, an order for P2,500 units of a custom design gauge was begun for the Suffolk Aircraft International. The cost incurred on the job are: Materials - P50,000; Labor (2.500 hours x P15 per hour) - P37,500; Factory Overhead (P30 pr direct labor hour) P75,000. Before taking delivery of the gauges, engineers at Suffolk Aircraft changed the design specification. The change requires the replacement of some parts. The material cost was P1 and required 25 minutes for installation in each gauge. The change affected all 2.500 gauges manufactured on the job. Required: (Note: NO peso sign: PUT comma) 1. Cost of job shipped to the customer. 2. Cost of job shipped to the customer if the rework is due to internal failure. job if the rework is considered abnormal. 3. Unit cost of

Step by Step Solution

3.42 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

Question 1 1 Cost to be transferred to Spoiled Goods Inventory Cost of spoiled goods 40 units x P200 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

Students also viewed these Accounting questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What are the need and importance of training ?

Answered: 1 week ago