Question
Pharoah Flour Company makes flour from high-protein lentils. It uses a process costing system. In the month of January, the company started 15,890 units
Pharoah Flour Company makes flour from high-protein lentils. It uses a process costing system. In the month of January, the company started 15,890 units and completed and transferred out 12,200 units. The inspection process occurs at the 60% point and the process results in normal spoilage of 13.5% of the good units passed. There were no beginning inventories in January. January's ending inventories were 75% complete with respect to labour and overhead and 100% complete with respect to materials. There was no abnormal spoilage during January. The company incurred $14,684 in conversion costs and $15,890 in direct materials cost during January. (a) Your Answer Correct Answer (Used) What is the number of spoiled units? Spoiled units 1,890 units
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