Alpha Company manufactures candles. Each candle requires a wick and one kilogram of wax. The wick...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Alpha Company manufactures candles. Each candle requires a wick and one kilogram of wax. The wick and melted wax are immediately placed in molds and allowed to harden for twenty four hours. The dried candles are then inspected and all defective candles are destroyed. Normal spoilage is regarded as 3% of the number of candles that pass inspection. Cost data for last week follows: Direct Materials Requisitioned Conversion Costs $ 33,400 $ 12,195 During the week, 78,000 candles were completed; 75,000 passed inspection and the remainder were defective. At the end of the week, 5,500 candles were still in the molds, they were considered 60% complete. There was no beginning W.I.P. inventory. Required: Prepare the journal entries to record abnormal spoilage and the transfer of the finished candles from the production area. Assume that the weighted average method is used. Repeat the above requirement, assuming that the FIFO method is used. Alpha Company manufactures candles. Each candle requires a wick and one kilogram of wax. The wick and melted wax are immediately placed in molds and allowed to harden for twenty four hours. The dried candles are then inspected and all defective candles are destroyed. Normal spoilage is regarded as 3% of the number of candles that pass inspection. Cost data for last week follows: Direct Materials Requisitioned Conversion Costs $ 33,400 $ 12,195 During the week, 78,000 candles were completed; 75,000 passed inspection and the remainder were defective. At the end of the week, 5,500 candles were still in the molds, they were considered 60% complete. There was no beginning W.I.P. inventory. Required: Prepare the journal entries to record abnormal spoilage and the transfer of the finished candles from the production area. Assume that the weighted average method is used. Repeat the above requirement, assuming that the FIFO method is used.
Expert Answer:
Answer rating: 100% (QA)
Weighted Average Method Abnormal Spoilage Debit Abnormal ... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
Students also viewed these accounting questions
-
Prepare general journal entries to record the transactions below for Dexter Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; M....
-
Prepare General Journal entries to record the following August 2014 transactions of a new business called The Pixel Shop. Aug. 1 Joseph Eetok, the owner, invested $20,000 cash and photography...
-
Prepare General Journal entries to record the following periodic system merchandising transactions for Schafer Merchandising. Use a separate account for each receivable and payable: Oct. 1. Purchased...
-
Consider the following data set that contains information about a sample of ten vehicles that recorded their gross weight and their fuel efficiency as stated by the manufacturer. Vehicle Vehicle...
-
Discuss the assumptions that are inherent in production setup cost, ordering cost, and carrying costs. How valid are they?
-
At the beginning of the year, CCZ Corporation bought three used machines from Pequita Compression Incorporated. The machines immediately were overhauled, installed, and started operating. Because the...
-
Patients undergoing an MRI occasionally report seeing flashes of light. Some practitioners assume that this results from electric stimulation of the eye by the emf induced by the rapidly changing...
-
Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is...
-
Walmart agreed to provide priority consideration for hiring applicants who were qualified to work at Walmart but had been rejected based on illegal information obtained through its employment...
-
Two slender rods of negligible weight are pin-connected at C and attached to blocks A and B, each of weight W. Knowing that P = 1.260W and that the coefficient of static friction between the blocks...
-
You are the bookkeeper for Brad's Vegan Ice Creamery. Bradley Stanton, the owner of Brad's Vegan Ice Creamery, has called a meeting with you (the bookkeeper) and Melinda (the sales manager) to...
-
Question 1 Income per person exceeds $25,000 in many countries, but is below $1,000 per person in many other countries. Based on the solow growth model, suggest at least three possible explanations...
-
Qatar has the highest GDP per capita in the world, according to the IMF. Therefore, Qatar is the most powerful country economically in the world. Explain why this statement is flawed
-
What are the major problems of the fiscal policy? How does fiscal policy differ from the monetary policy in the USA economic system?
-
Read the article by Grossman (2016) and analyze the factors contributing to the current heroin epidemic that has been particularly devastating in rural areas. What are the implications for potential...
-
I. What are some great ways to look at the following statement, "Identification of possible issues brings forth the good project performance and this process should involve the entire team?" As we...
-
What is the equations to calculate the answers? Start Start 8 Phase I Success 75% 13 Failure 25% 7 Phase II Utah 32% Colorado 25% Network Expansion Phase III Arizona 18% Failure 25% 9 10 14 5...
-
PC Contractors, Inc., was an excavating business in Kansas City, Missouri. Union Bank made loans to PC, subject to a perfected security interest in its equipment and other assets, including...
-
Patrick Inc. sells industrial solvents in five-gallon drums. Patrick expects the following units to be sold in the first three months of the coming year: January ................41,000 February...
-
Kiwi Corporation issued at par $350,000, 9 percent bonds on December 31, 2011. Interest is paid annually on December 31. The principal and the final interest payment are due on December 31, 2013....
-
Drysdale Dairy produces a variety of dairy products. In Department 12, cream (transferred in from Department 6) and other materials (sugar and flavorings) are mixed at the beginning of the process...
-
If a tRNA has an anticodon with the sequence 3-GAC-5, which amino acid does it carry? a. Aspartic acid c. Leucine b. Valine d. Glutamine
-
Lets suppose a researcher mixed together nucleotides with the following percentages of bases: 30% G, 30% C, and 40% A. If RNA was made via polynucleotide phosphorylase, what percentage of the codons...
-
An inborn error of metabolism is caused by a. a mutation in a gene that causes an enzyme to be inactive. b. a mutation in a gene that occurs in somatic cells. c. the consumption of foods that disrupt...
Study smarter with the SolutionInn App