Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fantastic Furniture manufactures plastic lawn furniture in a continuous process. The company pours molten plastic into molds and then cools the plastic. Materials are added

Fantastic 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)

Fantastic Furniture had 1,000 spoiled units in March, 2021.

(Show all your work to receive full credits.)

Required:

  1. Using the format used in class, 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.

Inspection point

15%

40%

100%

Normal spoilage in units

Abnormal spoilage in units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Sustainability Accounting And Accountability

Authors: Matias Laine, Helen Tregidga, Jeffrey Unerman

3rd Edition

1032023104, 9781032023106

More Books

Students also viewed these Accounting questions

Question

Using your own words, explain how third-party cookies are created.

Answered: 1 week ago

Question

3. Give examples of four fair disciplinary practices.

Answered: 1 week ago

Question

4. Explain how to use fair disciplinary practices.

Answered: 1 week ago