Assume that 50,000 units are put into production for Job 101 and the total cost of production
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Question:
Assume that 50,000 units are put into production for Job 101 and the total cost of production was P1,500,000. At the completion of production only 47,000 units were good. The remaining units were classified as spoiled and had a salvage value of P7,000. Management considers spoilage to be normal to the general production process and includes normal spoilage in the predetermined factory overhead application rate.
When accounting for the spoilage of Job 101, what is the total amount of costs to be removed from work-in-process inventory?
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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