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Work in process, beginning                                       24,500
Started during current period                                 152,340
To account for                                                          176,840
Spoiled unit                                                                 12,720
Good units completed and transferred out          133,760
Work in process, ending                                           30,360
Accounted for                                                          176,840
Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.
1.  COMPUTE THE NORMAL AND ABNORMAL UNITS
2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.?
Most Upvoted Answer
Work in process, beginning                                       24,50...
1. COMPUTE THE NORMAL AND ABNORMAL UNITS
To determine the normal and abnormal spoilage, we first need to establish the good units that were completed and transferred out.
- Good Units Completed: 133,760
- Normal Spoilage Rate: 3% of good units
Calculating Normal Spoilage:
- Normal Spoilage = 3% of Good Units Completed
- Normal Spoilage = 0.03 * 133,760 = 4,012.8 (rounded to 4,013 units)
Now, we can compute the abnormal spoilage:
- Total Spoiled Units: 12,720
- Abnormal Spoilage = Total Spoiled Units - Normal Spoilage
- Abnormal Spoilage = 12,720 - 4,013 = 8,707 units
2. CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED
If we assume that the equivalent unit cost of a spoiled unit is P14, we can calculate the savings from eliminating all spoilage.
- Total Spoiled Units: 12,720
- Equivalent Unit Cost: P14
Calculating Total Cost of Spoilage:
- Total Cost of Spoilage = Total Spoiled Units * Equivalent Unit Cost
- Total Cost of Spoilage = 12,720 * P14 = P177,120
Thus, if all spoilage is eliminated, the amount of savings would equal the total cost of the spoiled units, which is P177,120.
In summary, by eliminating spoilage, the company can save P177,120, improving efficiency and profitability.
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Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.?
Question Description
Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.?.
Solutions for Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.? defined & explained in the simplest way possible. Besides giving the explanation of Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.?, a detailed solution for Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.? has been provided alongside types of Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.? theory, EduRev gives you an ample number of questions to practice Work in process, beginning                                       24,500Started during current period                                 152,340To account for                                                          176,840Spoiled unit                                                                 12,720Good units completed and transferred out          133,760Work in process, ending                                           30,360Accounted for                                                          176,840Inspection occurs at 100% completion stage.  Normal spoilage is 3% of good units passing through inspection.1.  COMPUTE THE NORMAL AND ABNORMAL UNITS2.  ASSUME THAT THE EQUIVALENT UNIT COST OF A SPOILED UNIT IS p14.  CALCULATE THE AMOUNT OF SAVINGS IF ALL SPOILAGE IS ELIMINATED.? tests, examples and also practice CA Foundation tests.
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