Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem Eight; (5 points) Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000

image text in transcribed

Problem Eight; (5 points) Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000 units, 25% complete. Normal spoilage is equal to 10% of the units inspected The inspection point occurs at the 20% point and 7 000 units were rejected Direct materials are added at the 50%-point direct labour at 30% and overhead is applied uniformly. The costs per equivalent unit are: direct material $1.00; direct labour $1.50, averhead $2.00 Calculate the cost of abnormal spoilage. Problem Nine: (5 points) Sault Company uses a weighted average process costing system. Beginning inventory consists of 6,000 units 40% complete. Units started are 14.000, completed are 10,000, and ending inventones are 9,000 units, 70% complete Normal spoilage is 5% of the units inspected. Direct material is added at the 75% point and spoilage inspection occurs at the 80% point. The cost per equivalent unit for materials was $1.00 and $3.00 for conversion costs Assume actual spoilage was 500 units and ending work in process was 9,500 units. Calculate the equivalent units of conversion costs

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_2

Step: 3

blur-text-image_3

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

CIA Review Part 2 Internal Audit Practice For The New 3 Part Exam

Authors: Irvin N.Gleim

17th Edition

158194375X, 978-1581943757

More Books

Students also viewed these Accounting questions