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there is spoilage involved.... TWUN Carefree Company (CC) produces miniature plastic cars. Two departments, casting and molding, are involved in the manufacturing. The process starts
there is spoilage involved....
TWUN Carefree Company (CC) produces miniature plastic cars. Two departments, casting and molding, are involved in the manufacturing. The process starts in the casting department before the products move to the molding department. The following information is available for the month of January: WIP Inventory January 1 Quantity (Grams) January 31 Quantity (Grams) Cost Cost Casting Department None None 5,000 Molding Department RM15,000 2,000 ? The work in process in the molding department is estimated to be 0% complete for materials and 40% complete for conversion for the beginning of January. While for the end of January, the work in process will be 100% for materials and 40% for conversion. Also, the company had 3,000 spoiled miniature cars in February, 70% was normal spoilage and the rest abnormal spoilage. The product is inspected at the end of the production process. Costs of production for January follows: Materials Used RM450,000 Costs of Production Casting Department Molding Department Conversion RM90,000 80,000Step by Step Solution
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