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Bob's Furniture manufactures plastic lawn furniture in a continuous process. The company pours molten plastic into molds and then cools the plastic. Materials are added
- Bob's Furniture manufactures plastic lawn furniture in a continuous process. The company pours molten plastic into molds and then cools the plastic. Materials are added at the beginning of the process, and conversion is considered uniform through the period. Occasionally, the plastic does not completely fill a mold because of air pockets, and the chair is then considered spoilage. Normal spoilage is 6% of the good units that pass inspection. The following information pertains to March, 2021:
Beginning inventory | 1,400 units (100% complete for materials; 20% complete for conversion costs) |
Units started | 12,000 units |
Unites in ending work in process | 1,100 units (100% complete for materials; 70% complete for conversion costs) |
Bob Furniture had 1,000 spoiled units in March, 2021. |
A) compute the normal and abnormal spoilage 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.
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