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Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost. Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they are completed. Units are inspected at the end of the production process (discrete) in the Forming Department and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept. are: UNITS: Units in beginning inventory, 100% M, 35%CC Units started in process Units transferred to next department Units in process end, 100% M, 65% 10,000 90,000 80,000 15,000 COSTS: Costs- prior period Costs this period P12,600 Materials P360,000 Labor 7,700 14,000 111,390 222,780 Overhead

Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost. Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they are completed. Units are inspected at the end of the production process (discrete) in the Forming Department and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept. are: UNITS: Units in beginning inventory, 100% M, 35%CC Units started in process Units transferred to next department Units in process end, 100% M, 65% 10,000 90,000 80,000 15,000 COSTS: Costs- prior period Costs this period P12,600 Materials P360,000 Labor 7,700 14,000 111,390 222,780 Overhead

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 10P: Mt. Palomar Manufacturing Co. uses a process cost system. Its manufacturing operation is carried on...
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The total cost of spoilage chargeable to Revenue is (recognized as expenses):

The total cost of spoilage chargeable to Revenue is (recognized as expenses): Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost. Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they are completed. Units are inspected at the end of the production process (discrete) in the Forming Department and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept. are: UNITS: Units in beginning inventory, 100% M, 35%CC Units started in process Units transferred to next department Units in process end, 100% M, 65% 10,000 90,000 80,000 15,000 COSTS: Costs- prior period Costs this period P12,600 Materials Labor P360,000 111,390 222,780 7,700 Overhead 14,000
Transcribed Image Text:The total cost of spoilage chargeable to Revenue is (recognized as expenses): Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost. Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they are completed. Units are inspected at the end of the production process (discrete) in the Forming Department and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept. are: UNITS: Units in beginning inventory, 100% M, 35%CC Units started in process Units transferred to next department Units in process end, 100% M, 65% 10,000 90,000 80,000 15,000 COSTS: Costs- prior period Costs this period P12,600 Materials Labor P360,000 111,390 222,780 7,700 Overhead 14,000
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