BPW Incorporated produces perishable frozen food items for sale in grocery stores across the USA. During...
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BPW Incorporated produces perishable frozen food items for sale in grocery stores across the USA. During November, BPW produces a goods with a total manufacturing cost of $10,000,000. BPW's operational manager expects 2% of goods manufactured will spoil prior to sale. Due to a transport error, an entire shipment of product in the Florida panhandle region thawed and was ruined. The shipment has a production cost of $100,000 and a sales value of $115,000. Other spoilage in November, besides the transportation error, totaled $200,000. A. What is BPW's normal spoilage for November (if any)? B. What is BPW's abnormal spoilage for November (if any)? C. How much spoilage would be accounted for as a loss on the income statement? BPW Incorporated produces perishable frozen food items for sale in grocery stores across the USA. During November, BPW produces a goods with a total manufacturing cost of $10,000,000. BPW's operational manager expects 2% of goods manufactured will spoil prior to sale. Due to a transport error, an entire shipment of product in the Florida panhandle region thawed and was ruined. The shipment has a production cost of $100,000 and a sales value of $115,000. Other spoilage in November, besides the transportation error, totaled $200,000. A. What is BPW's normal spoilage for November (if any)? B. What is BPW's abnormal spoilage for November (if any)? C. How much spoilage would be accounted for as a loss on the income statement? BPW Incorporated produces perishable frozen food items for sale in grocery stores across the USA. During November, BPW produces a goods with a total manufacturing cost of $10,000,000. BPW's operational manager expects 2% of goods manufactured will spoil prior to sale. Due to a transport error, an entire shipment of product in the Florida panhandle region thawed and was ruined. The shipment has a production cost of $100,000 and a sales value of $115,000. Other spoilage in November, besides the transportation error, totaled $200,000. A. What is BPW's normal spoilage for November (if any)? B. What is BPW's abnormal spoilage for November (if any)? C. How much spoilage would be accounted for as a loss on the income statement? BPW Incorporated produces perishable frozen food items for sale in grocery stores across the USA. During November, BPW produces a goods with a total manufacturing cost of $10,000,000. BPW's operational manager expects 2% of goods manufactured will spoil prior to sale. Due to a transport error, an entire shipment of product in the Florida panhandle region thawed and was ruined. The shipment has a production cost of $100,000 and a sales value of $115,000. Other spoilage in November, besides the transportation error, totaled $200,000. A. What is BPW's normal spoilage for November (if any)? B. What is BPW's abnormal spoilage for November (if any)? C. How much spoilage would be accounted for as a loss on the income statement?
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Spoilage Cost Analysis for BPW Incorporated A Normal Spoilage Calculate the expected normal spoilage ... View the full answer
Related Book For
Essentials Of Statistics For Business And Economics
ISBN: 9781305081598
7th Edition
Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam
Posted Date:
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