yan Roque Steel Company manufactures steel products. During the current period, an order or 30,000 units was began on Job 143 for Ms. Andrea, a customer. After the job was ompleted, the units were inspected and 5% of the total units were determined to be spoiled. ndrea agreed to accept the units that were not spoiled instead of the quantity originally rdered. The spoiled units can be sold as seconds for P12.50 each. Spoiled units are kept in an nventory account separate from Finished Goods Inventory account. Total costs charged to Job 43 are: Materials abor (9,000 direct labor hours @P12 per hour) actory overhead (P20 per direct labor hour) P192,000 108,000 180,000 P480,000 otal costs Issuming the spoiled units are the result of a change in design specified by the customer, ow much is the cost per unit of goods delivered to Ms. Andrea?

yan Roque Steel Company manufactures steel products. During the current period, an order or 30,000 units was began on Job 143 for Ms. Andrea, a customer. After the job was ompleted, the units were inspected and 5% of the total units were determined to be spoiled. ndrea agreed to accept the units that were not spoiled instead of the quantity originally rdered. The spoiled units can be sold as seconds for P12.50 each. Spoiled units are kept in an nventory account separate from Finished Goods Inventory account. Total costs charged to Job 43 are: Materials abor (9,000 direct labor hours @P12 per hour) actory overhead (P20 per direct labor hour) P192,000 108,000 180,000 P480,000 otal costs Issuming the spoiled units are the result of a change in design specified by the customer, ow much is the cost per unit of goods delivered to Ms. Andrea?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 16P: Lloyd Industries manufactures electrical equipment from specifications received from customers. Job...

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Lloyd Industries manufactures electrical equipment from specifications received from customers. Job X10 was for 1,000 motors to be used in a specially designed electrical complex. The followingcosts were determined for each motor: At final inspection, Lloyd discovered that 33 motors did not meet the exacting specifications established by the customer. Anexamination indicated that 18 motors were beyond repair andshould be sold as spoiled goods for 75 each. The remaining15 motors, though defective, could be reconditioned as first-qualityunits by the addition of 1,650 for materials, 1,500 for labor, and1,200 for factory overhead. Required: Prepare the journal entries to record the following: 1. The scrapping of the 18 motors, with the income from spoiledgoods treated as a reduction in the manufacturing cost of thespecific job. 2. The correction of the 15 defective motors, with the additionalcost charged to the specific job. 3. The additional cost of replacing the 18 spoiled motors with newmotors. 4. The sale of the spoiled motors for 75 each. 5. If the reconditioned motors sell for 400 each, is Lloyd betteroff reconditioning the defective motors or selling them as isfor 75 as spoiled goods?
Walloon Company produced 150 defective units last month at a unit manufacturing cost of 30. The defective units were discovered before leaving the plant. Walloon can sell them as is for 20 or can rework them at a cost of 15 and sell them at the regular price of 50. What is the total relevant cost of reworking the defective units? a. 2,250 b. 3,000 c. 4,500 d. 6,750
Pasha Company produced 50 defective units last month at a unit manufacturing cost of 30. The defective units were discovered before leaving the plant. Pasha can sell them as is for 20 or can rework them at a cost of 15 and sell them at the regular price of 50. Which of the following is not relevant to the sell-or-rework decision? a. 30 b. 20 c. 15 d. 50
Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next months sales are in the finished goods inventory. Ingles also purchases sufficient materials to ensure that materials inventory is 60 percent of the following months scheduled production. Ingless sales budget in units for the next quarter is as follows: Ingless ending inventories in units for July 31 are as follows: Required: 1. Calculate the number of tables to be produced during August. 2. Disregarding your response to Requirement 1, assume the required production units for August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is 4,000 units. Compute the number of table legs to be purchased in August. 3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees will be required for the Assembly Department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.) (CMA adapted)
Eyring Manufacturing produces a component used in its production of washing machines. The time to set up and produce a batch of the components is two days. The average daily usage is 800 components, and the maximum daily usage is 875 components. Required: Compute the reorder point assuming that safety stock is carried by Eyring Manufacturing. How much safety stock is carried by Eyring?
Philantro Metal Shop, manufactures metal products that require casting, such as engine blocks, pistons and engine housings. During the current year, an order of 30,000 custom housing was begun on job number 202 for Mr. A. After the job was completed, the housing was inspected and 4% of the units were determined to be defective. Mr. A agreed to accept the good units only at 140% of cost. The spoiled units can be sold as seconds for P15 each. Spoiled goods are kept in an inventory account separate from finished goods. Total costs charged to job #202 are: Materials - P276,000; Labor (6,000hrs @ P14 per hour) is P84,000 and factory overhead (P30 per labor hours) is P180,000. If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units?
P Foundry Inc. manufactures custom metal products that require casting, such as engine blocks, pistons, and engine housings. During the current period, an order for 5,000 custom housings was begun on job number 3387 for R pump Company. After the job was completed, the housings were inspected and 200 units were determined to be defective. The customer has agreed to accept the order with only 4,800 units instead of the quantity originally ordered. The spoiled units can be sold as seconds P15 each. Spoiled goods are kept in an inventory account separate from finished goods. Total costs charged to job number 3387 are: Materials P 46,000 Labor(1,000 hours X P14 per hour) 14,000 Factory Overhead (P30 per labor hour) 30,000 Total cost charged to Job number 3387 P 90,000 Required: Assuming that the defective units are the result of an internal failure (that is, employee error or a machine failure, prepare the appropriate general journal entry to record the transfer of the defective…
Paradise Bay Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay, obtains the following information for Job #22 in August 2020. A total of 23 units were started, and 3 spoiled units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,300 per unit. Assume that the 3 spoiled units of Paradise Bay Shop's Job #22 can be reworked for a total cost of $2,200. A total cost of $3,900 associated with these units has already been assigned to Job #22 before the rework. Requirements: Prepare the journal entries for the rework, assuming the following: a. The rework is related to a specific job. b. The rework is common to all jobs. c. The rework is considered to be abnormal.
Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit: Direct materials 10 Direct labor 8 Applied factory overhead 12 Total 32 Final inspection of Job 403 disclosed 59 defective units and 100 spoiled units. The defective units were reworded at a total cost of P500, and the spoiled units were sold to an employee for P1,500. If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units? (round off to the nearest centavo) Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit: Direct materials 10 Direct labor 8 Applied…
Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit: Direct materials 10 Direct labor 8 Applied factory overhead 12 Total 32 Final inspection of Job 403 disclosed 59 defective units and 100 spoiled units. The defective units were reworded at a total cost of P500, and the spoiled units were sold to an employee for P1,500. If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units? (round off to the nearest centavo)
SitChairwn Company manufactures chairs to the exacting specifications of various customers. During January 2020, Job 023 for the production of 1,100 was completed at the following costs per unit: Direct Materials 10 Direct Labor 8 Applied Factory Overhead 12 Final Inspection of the order dislosed 50 defective units and 100 spoiled units. The defective chairs were reworked at a total cost of $50 and the spoiled chairs were sold toa jobber for $150. What would be the unit cost of the good units produced?
Jellyfish Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Jellyfish, obtains the following information for Job #10 in August 2017. A total of 46 units were started, and 6 spoiled units were detected and rejected at final inspection, yielding 40 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,100 per unit. The current disposal price of the spoiled units is $235 per unit. When the spoilage is detected, the spoiled goods are inventoried at $235 per unit. . Assume that Job #10 of Jellyfish Machine Shop generates normal scrap with a total sales value of $700 (it is assumed that the scrap returned to the storeroom is sold quickly). Prepare the journal entries for the recognition of scrap, assuming The value of scrap is material, and scrap is recognized as inventory at the time of production and is recorded at its net realizable value