CC and Co. purchases fish and creates spicy fish patties to sell to its retail sales department.
Question:
CC and Co. purchases fish and creates spicy fish patties to sell to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some patties are spoiled due todefects. Inspection occurs when units are 100% converted. Normal spoiled patties generally constitute 4% of the good patties. Data for January 2020 are as follows:
WIP, beginning inventory 1/1/2025,000 patties
Direct materials (100% complete)
Conversion costs (50% complete)
Started during January230,000 patties
Completed and transferred out Jan. 31, 2020190,000 patties
WIP, ending inventory1/31/202045,000patties
Direct materials (100% complete)
Conversion costs (30% complete)
Costs for January:
WIP, beginning Inventory:
Direct materials$ 130,000
Conversion costs95,910
Direct materials added300,000
Conversion costs added383,130
How many total units were spoiled?
Question Blank
How many units should be considered "abnormal" spoilage?
Question Blank
What is the TOTAL cost of the abnormal spoilage?
Question Blank
(round this UP to the nearest $100)
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura