Question
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in
Outose 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 undetectable materials defects. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows:
| WIP, beginning inventory 12/1/2017 | 22,600 units | |
| Direct materials (100% complete) | ||
| Conversion costs (80% complete) | ||
| Started during December | 77,000 units | |
| Completed and transferred out 12/31/2017 | 72,900 units | |
| WIP, ending inventory 12/31/2017 | 18,600 units | |
| Direct materials (100% complete) | ||
| Conversion costs (65% complete) | ||
| Costs for December: | ||
| WIP, beginning Inventory: | ||
| Direct materials | $154,000 | |
| Conversion costs | 76,800 | |
| Direct materials added | 230,400 | |
| Conversion costs added | 290,000 |
Abnormal spoilage totals ________.
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Business Intelligence For New-Generation ManagersCurrent Avenues Of Development
Authors: Jörg H. Mayer, Reiner Quick
6th Edition
3319156950, 9783319156958
