The following information is available for Integrity Co. for the current year: Beginning Work in Process (75% complete) 14,500 units Costs of Beginning Work in Process: Materials, P25,100 Conversion, P50,000 Started, 75,000 units Current costs: Materials, P120,400 Conversion, P301,168 Ending Work in Process (60% complete), 16,000 units Normal spoilage (continuous), 5,000 units Abnormal spoilage, 2,500 units Completed and Transferred, 66,000 units All materials are added at the start of the process. Integrity uses the FIFO method for process costing. How much is the amount chargeable to Loss from Abnormal Spoilage?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
The following information is available for Integrity Co. for the current year:
Beginning Work in Process (75% complete) 14,500 units
Costs of Beginning Work in Process: Materials, P25,100 Conversion, P50,000
Started, 75,000 units
Current costs: Materials, P120,400 Conversion, P301,168
Ending Work in Process (60% complete), 16,000 units
Normal spoilage (continuous), 5,000 units
Abnormal spoilage, 2,500 units
Completed and Transferred, 66,000 units
All materials are added at the start of the process. Integrity uses the FIFO method for
How much is the amount chargeable to Loss from Abnormal Spoilage?
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