Without Ending Work in Process, Sales of Spoiled Goods as a Deduction for Production Costs Department II PT. TCA in June 2019 Production Data is as follows: The product is received from the Dept. I Finished Goods that meet Quality standards Defective Goods (then repaired) Spoiled Goods (normal) Missing Goods (ending of process) 82.500 Units 65.000 Units 5.000 Units 10.000 Units 2.500 Units Production Cost Data are as follows: Cost of Goods from Dept. I $ 8,000,000 Product Completion Costs at Dept. Il is: Material Cost Labor Cost Overhead Cost $ 1,600,000 2,950,000 2,950,000 To repair defective goods, an additional labor cost of $ 50,000 and an overhead cost of $ 50,000. Spoiled Goods can be sold $ 78/unit. Instructions Compile the Statement of Cost of Goods Manufactured and the required Journal! Notes: Defective Goods can be repaired thus increasing production costs - The proceeds from the sale of Spoiled Goods are used to reduce Production Costs Without Ending Work in Process, Sales of Spoiled Goods as a Deduction for Production Costs Department II PT. TCA in June 2019 Production Data is as follows: The product is received from the Dept. I Finished Goods that meet Quality standards Defective Goods (then repaired) Spoiled Goods (normal) Missing Goods (beginning of process) 82.500 Units 65.000 Units 5.000 Units 10.000 Units 2.500 Units Instructions Compile the Statement of Cost of Goods Manufactured and the required Journal! Notes: Defective Goods can be repaired thus increasing production costs - The proceeds from the sale of Spoiled Goods are used to reduce Production Costs Without Ending Work in Process, Sales of Spoiled Goods as a Deduction for Production Costs Department II PT. TCA in June 2019 Production Data is as follows: The product is received from the Dept. I Finished Goods that meet Quality standards Defective Goods (then repaired) Spoiled Goods (normal) Missing Goods (beginning of process) 82.500 Units 65.000 Units 5.000 Units 10.000 Units 2.500 Units Production Cost Data are as follows: Cost of Goods from Dept. I $ 8,000,000 Product Completion Costs at Dept. Il is: Material Cost Labor Cost Overhead Cost $ 1,600,000 2,950,000 2,950,000 To repair defective goods, an additional labor cost of $ 50,000 and an overhead cost of $ 50,000. Spoiled Goods can be sold $ 78/unit. Instructions Compile the Statement of Cost of Goods Manufactured and the required Journal! Notes: - Defective Goods can be repaired thus increasing production costs - The proceeds from the sale of Spoiled Goods are used to reduce Production Costs
