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uestion: The total cost of spoilage chargeable to Revenue is (recognized as expenses) and the total costs of goods allocated to units transferred out are

uestion: The total cost of spoilage chargeable to Revenue is (recognized as expenses) and the total costs of goods allocated to units transferred out are

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
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 13P: Tanaka Manufacturing Co. uses the process cost system. The following information for the month of...
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The total cost of spoilage chargeable to Revenue is (recognized as expenses) and the total costs of goods allocated to units transferred out are: 

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 7,700 111,390 Overhead 14,000 222,780
Transcribed Image Text: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 7,700 111,390 Overhead 14,000 222,780
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