During may a machine malfunctioned and dumped salt into

Reference no: EM13586711

Corn meal in a continuous, mass production process. Corn is added at the beginning of the process. Normal losses are minimal and abnormal losses infrequently occur when foreign materials are found in the corn meal. Routine inspection occurs at the 95 percent completion point as to conversion.

During May, a machine malfunctioned and dumped salt into 8,000 pounds of corn meal. This abnormal loss occurred when conversion was 70 percent complete on those pounds of product. The error was immediately noticed, and those pounds of corn meal were pulled from the production process. Two thousand additional pounds of meal were detected as unsuitable at the routine inspection point; this amount was considered within normal limits. Production data for the month follow.

Beginning WIP Inventory (85% complete) 40,000 pounds

Started during the month 425,000 pounds

Ending WIP Inventory (25% complete) 10,000 pounds

a. Determine the number of EUP for direct material and for conversion, assuming a FIFO cost flow.

b. If the costs per EUP are $0.08 and $0.15 for direct material and conversion, respectively, what is the cost of the ending WIP Inventory?

c. What is the cost of abnormal loss? How is this cost treated in May?

Reference no: EM13586711

Questions Cloud

Compute the net amount of deferred income taxes to be : presented below are two independent situations related to future taxable and deductible amounts resulting from

On march 31 2013 the herzog company purchased a factory : on march 31 2013 the herzog company purchased a factory complete with machinery and equipment. the allocation of the

Dodge incorporated acquires 15 of gates corporation on : dodge incorporated acquires 15 of gates corporation on january 1 2013 for 105000 when the book value of gates was

List of types of investments proposed at least three you : you are the assistant treasurer for a company. your company has 10 million in excess cash that it does not plan to use

During may a machine malfunctioned and dumped salt into : corn meal in a continuous mass production process. corn is added at the beginning of the process. normal losses are

On december 20 2013 jamesway received a 4100 payment from a : the jamesway corporation had the following situations on december 2013.1.on december 20 2013 jamesway received a 4100

Elaines original basis in the hornbeam partnership was : elaines original basis in the hornbeam partnership was 25000. her share of the taxable income from the partnership

Sam heaves a 16-lb shot straight upward giving it a : sam heaves a 16-lb shot straight upward giving it a constant upward acceleration from rest of 45.0 ms for 64.0 cm. he

A company that has a fiscal year-end of december 31 1 on : a company that has a fiscal year-end of december 31 1 on october 1 30000 was paid for a one-year fire insurance policy

User Account

All Pages