SCENARIO: FIFO Abnormal Loss Units

Problem I: Prepare Cost of Production Reports for all the departments. The Boy Manufacturing Co. manufactures a product which is processed in three successive departments - Department A, Department B, and Department C. In September, units were spoiled in all three departments at various stages of processing of the defective materials used. Production data for the month follow: Department A 5,000 35,000 Department B 8.000 Department C 10,000 2/5 3/8 1/2 34,000 34,000 In process, September 1 Transferred to next department Abnormal lost units discovered: (1) at start of processing (2) when 1/2 processed (3) at end of processing In process, September 30 2,000 4,000 7,000 3,000 1/3 5,000 3/5 3,000 1/3 Cost Data: Work in process, September 1 Cost added: Materials 6,000 17,000 59,500 25,500 36,000 72,000 36,000 36,000 98,400 92,500 55,500 37,000 Labor Overhead Problem I: Prepare Cost of Production Reports for all the departments. The Boy Manufacturing Co. manufactures a product which is processed in three successive departments - Department A, Department B, and Department C. In September, units were spoiled in all three departments at various stages of processing of the defective materials used. Production data for the month follow: Department A 5,000 35,000 Department B 8.000 Department C 10,000 2/5 3/8 1/2 34,000 34,000 In process, September 1 Transferred to next department Abnormal lost units discovered: (1) at start of processing (2) when 1/2 processed (3) at end of processing In process, September 30 2,000 4,000 7,000 3,000 1/3 5,000 3/5 3,000 1/3 Cost Data: Work in process, September 1 Cost added: Materials 6,000 17,000 59,500 25,500 36,000 72,000 36,000 36,000 98,400 92,500 55,500 37,000 Labor Overhead