How much spoilage should be charged off against revenues

Assignment Help Accounting Basics

Reference no: EM131763121

Question: Suppose a company manufactured 100,000 units in the month of August, exclusive of spoilage allocation. Of these completed units, 50,000 units were sold during the same month. The inspection point is at the end of the production process. For the month, normal spoilage is $40,000 and abnormal spoilage is $30,000. How much spoilage should be "charged off" against revenues?

Suppose a company has been buying widgets in bulk, 1000 units 3 times a year. The company pays $200 per unit on its PO and the relevant carrying cost is $20 per unit. Assume the units are required evenly throughout the year. What is the EOQ?

Reference no: EM131763121

Questions Cloud

Application in different situations : Describe the functionality of the cin, getand getline, and compare their application in different situations.

Problem analysis before coding : What might happen if shortcuts are taken? What real-world examples can you think of where shortcuts may have had an impact?

Organization plans to seek grants from private foundation : The organization plans to seek grants from private foundations to carry out research projects pertaining to various political causes

Identify from the standpoint of the welfare recipients : Supposing you are one of the members, what difficulties or barriers can you identify from the standpoint of the welfare recipients?

How much spoilage should be charged off against revenues : Suppose a company manufactured 100,000 units in the month of August, exclusive of spoilage allocation. Of these completed units, 50,000 units were sold.

Ethical behavior of employees within organization : The HR department is not solely responsible for the ethical behavior of employees within an organization, but it is a key factor.

Calculate the inventory turnover for oakley inc : Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.

Identify gaps in and propose improvements for professional : PSY 540 : Create a short presentation that will help a target audience in a professional setting understand the basic principles of visual perception.

Handling costs allocated to one unit of specialty windows : what would be the materials handling costs allocated to one unit of specialty windows

User Account

All Pages