Cost Accounting Practices
SOAL LATIHAN CHAPTER 18
ASISTENSI COST ACCOUNTING
UNIVERSITAS BAKRIE
1. 18-16
The following data, in physical units, describe a grinding process for January :
WIP, beginning 19,000
Started during current period 150,000
To account for 169,000
Spoiled units 12,000
Good units completed and transferred out 132,000
WIP,ending 25,000
Accounted for 169,000
Inspection occurs at the 100% completion stage. Normal spoilage is 5 % of the good units passing inspection.
1. Compute the normal and abnormal spoilage in units.
2. Assume that the equivalent-unit cost of a spoiled unit is $10.Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your answer. 2. In October 2005, Mendonza Co. incurs costs of $615,000 to produce 20,500 units. Of these 20,500 units, 20,000 are good units and 500 are spoiled units. Mendonza has no beginning inventory and no ending inventory that month. Of the 500 spoiled units, 400 units are spoiled because the injection molding machines are unable to manufacture good casing 100% of the time. That is, these units are spoiled even though the machines were run carefully and efficiently. The remaining 100 units are spoiled because of machine breakdowns and operator errors.
Compute the normal spoilage rate . 3. 18-17 4. Lorando Co uses process costing system for its production. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at a zero net disposal value. Lorando Co uses the weighted average method of process costing. On May 2010, beginning WIP has same amount with ending WIP, 2,500 units for direct materials and 4000 units for conversion costs. Production started in May 2010 is 10,000 units. After the production process, product controller finds
ASISTENSI COST ACCOUNTING
UNIVERSITAS BAKRIE
1. 18-16
The following data, in physical units, describe a grinding process for January :
WIP, beginning 19,000
Started during current period 150,000
To account for 169,000
Spoiled units 12,000
Good units completed and transferred out 132,000
WIP,ending 25,000
Accounted for 169,000
Inspection occurs at the 100% completion stage. Normal spoilage is 5 % of the good units passing inspection.
1. Compute the normal and abnormal spoilage in units.
2. Assume that the equivalent-unit cost of a spoiled unit is $10.Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your answer. 2. In October 2005, Mendonza Co. incurs costs of $615,000 to produce 20,500 units. Of these 20,500 units, 20,000 are good units and 500 are spoiled units. Mendonza has no beginning inventory and no ending inventory that month. Of the 500 spoiled units, 400 units are spoiled because the injection molding machines are unable to manufacture good casing 100% of the time. That is, these units are spoiled even though the machines were run carefully and efficiently. The remaining 100 units are spoiled because of machine breakdowns and operator errors.
Compute the normal spoilage rate . 3. 18-17 4. Lorando Co uses process costing system for its production. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at a zero net disposal value. Lorando Co uses the weighted average method of process costing. On May 2010, beginning WIP has same amount with ending WIP, 2,500 units for direct materials and 4000 units for conversion costs. Production started in May 2010 is 10,000 units. After the production process, product controller finds