Answered: PL manufactures athletic clothing,…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15P: One of the tennis rackets that Ace Sporting Goods manufactures is a titanium model (Slam) that sells...

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Answer Pleaser The Peric Manufacturing Shop produces motorcycle parts. Typically, 12 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $40.00 per unit. Spoiled pieces may be disposed at $8.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 3,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? a. Dr. Work-in-Process Control 96; Cr. Materials Control 96 b. Dr. Materials Control 288; Cr. Work-in-Process Control 288 c. Dr. Work-in-Process Control 288; Cr. Materials Control 288 d. Dr. Materials Control 96; Cr. Work-in-Process Control 96
14. Ryan Roque Steel Company manufactures steel products. During the current period, an order for 30,000 units was began on Job 143 for Ms. Andrea, a customer. After the job was completed, the units were inspected and 5% of the total units were determined to be spoiled. Andrea agreed to accept the units that were not spoiled instead of the quantity originally ordered. The spoiled units can be sold as seconds for P12.50 each. Spoiled units are kept in an inventory account separate from Finished Goods Inventory account. Total costs charged to Job 143 are:Materials P192,000Labor (9,000 direct labor hours @P12 per hour) 108,000Factory overhead (P20 per direct labor hour) 180,000 Total costs P480,000Assuming the spoiled units are the result of a change in design specified by the customer, how much is the cost per unit of goods…
Catriona Company completed 300 units of customized jewelry. The product cost per unit: Direct materials P8,400 Direct labor 500 Factory overhead 750 P9,650 However, upon quality inspection, 20 units were found to be spoiled. The spoiled goods are sold for P138,400. The spoilage is due to customer's preferences. All good items and spoiled items are sold. How much is the product cost per unit?
The Peric Manufacturing Shop produces motorcycle parts. Typically, 12 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $40.00 per unit. Spoiled pieces may be disposed at $8.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 3,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? a. Dr. Work-in-Process Control 96; Cr. Materials Control 96 b. Dr. Materials Control 288; Cr. Work-in-Process Control 288 c. Dr. Work-in-Process Control 288; Cr. Materials Control 288 d. Dr. Materials Control 96; Cr. Work-in-Process Control 96
Jimin Company completed 5,200 units of customized souvenir items. The product cost per unit: Direct materials P50 Direct labor 80 Factory overhead 60 P190 However, upon quality inspection, 50 units were found to be spoiled. The spoiled/damaged goods are sold for P6,000. The spoilage is due to the employee's fault. How much is the amount charged to factory overhead control?
12. Treasures Company manufactures picture frames of all sizes and shapes and uses a job-order costing system. There is always some spoilage in each production run. The following costs relate to the current run: Estimated overhead (exclusive of spoilage) $160,000 Spoilage (estimated) $ 25,000 Sales value of spoiled frames $ 11,500 Labor hours 100,000 The actual cost of a spoiled picture frame is $7.00. During the year 170 frames are considered spoiled. Each spoiled frame can be sold for $4. The spoilage is considered a part of all jobs. Required: a. Labor hours are used to determine the predetermined overhead rate. What is the predetermined overhead rate per direct labor hour? b. Prepare the journal entry needed to record the spoilage. c. Prepare the journal entry if the spoilage relates only to Job #12 rather than being a part of all production runs.
Southwest toys manufacturers gloves at its San Francisco facility. The company uses job costing and provides you with the following information regarding operations for April 2020: Data table Total globes manufactured 35000 Globes rejected as spoiled units 850 Total manufacturing costs $700000 Requirements 4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred. Data Table Total globes manufactured 35,000 Globes rejected as spoiled units 850 Total manufacturing cost $700,000 ************************only need ansrew to #4***********************************
Wally Company makes dog beds. Last year Wally incurred the following costs related to quality control. What is Wally Company's cost of quality for external failures? 1. Repairs for dog beds under warranty 2. Seamstress training 3. Wages of part-time inspector of products 4. Cost of replacements given to customers for defective dog beds 5. Product liability insurance 6. Inspection of sewing machines as part of routine maintenance 7. Inspection of fabric and thread for defects 8. Repairing defective dog beds prior to sale 1,460 2,081 1,047 1,440 2,744 1,528 253 1,805
Zumiez Company produces a small standard component in a process operation. 25. There is a quality control check at the end of processing, and items which fail the check are sold as scrap for P2.80 per unit. The expected rate of rejection is 10%. Normal loss is not given any cost, except that whatever scrap value it has is credited to the process account. The cost of abnormal loss, net of scrap value, is written off to the profit and loss account. Data for April 2015 are as follows: Materials 4,000 units P16,000 Conversion costs 24,000 Output to finished goods 3,000 units Assuming there were no work in process at the beginning and end of the month, what was the full cost of the finished output that passed the quality control check? P32,400 a. b. P33,333 C. P36,000 d. P38,880
Jack Company's production report for Job #901 showed that 5 vehicle parts out of 100 vehicle parts are spoiled. Costs assigned prior to the inspection point are P10,000 per part. When the spoilage is detected, the spoiled goods were valued at P2,000 per part, the net disposal value. Required: Compute the following: (1) Jack determined that the spoilage is caused by the specifications of a particular job. What amount should be debited to factory overhead? (2) Based on your answers to (1), how much is the cost per good unit? (3) If the spoilage is a normal characteristic of the production process, what amount should be debited to factory overhead? (4) If the spoilage is abnormal, how much is the cost per good unit?
Legacy Company completed 200 units of customized jewelry. The product cost per unit: Direct materials P7,500 Direct labor 2,500 Factory overhead 2,500 P12,500 However, upon quality inspection: 2 units were sub-standard due to internal failure and sold immediately for an amount of P15,000. How much is charged to factory overhead control due to spoiled goods?
Guess Apparel completed 3,600 expensive bags during the 1" quarter of the current year. The following costs per unit are presented below: Direct materials Direct labor P200 180 180 Factory overhead, including P10 allowance for spoilage Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed the customer at 20% gross profit 6. If the spoilage is common to all jobs, the amount billed to the customer is 7. spoilage is due to customer's intervention, how much is the gross profit on the order?

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