Prepare Cost of Production Reports for all the departments. Fifo, abnormal Lost units. The...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Prepare Cost of Production Reports for all the departments. Fifo, abnormal Lost units.
The Boy Manufacturing Co. manufactures a product which is processed in three successive departments - Department A, Department B, and Department C. In September, units were spoiled in all three departments at various stages of processing of the defective materials used. Production data for the month follow:
Department A Department B Department C
In process, September 1 5,000 2/5 8,000 3/8 10,000 1/2
Transferred to next department 35,000 34,000 34,000
Abnormal lost units discovered:
(1) at start of processing 2,000 - -
(2) when 1/2 processed - 4,000 -
(3) at end of processing - - 7,000
In process, September 30 3,000 1/3 5,000 3/5 3,000 1/3
Cost Data:
Work in process, September 1 6,000 36,000 98,400
Cost added: Materials 17,000 72,000 92,500
Labor 59,500 36,000 55,500
Overhead 25,500 36,000 37,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
