Company X uses process costing. During the period under analysis the company produced 10000

units, of which 780 units were spoiled, due to the fact that the manufacturing process, even though

carefully and efficiently executed, is unable to produce good units 100% of the

time. The total number of units spoiled in the period was 880 units. During the period there was a machine breakdown. The standard normal spoilage rate for the company is unknown.

What was the actual normal spoilage rate for the period under analysis? (round to two decimal

places)

Company X uses the weighted-average method in its process costing system. There were 15124 units in the department's beginning work in process inventory, which were 62% complete with respect to conversion costs. During the current month, 105745 units were started and 100000 were completed and transferred out of the department. A total number of 107377 equivalent units of production was computed with respect to conversion costs during the current month. Conversion costs are added evenly in the process.

Assuming that there is no spoilage, the ending work in process inventory in the department has the following degree of completion in terms of conversion costs:

• Budgeted manufacturing costs = $63183
• Actual manufacturing costs = $56864,7

Company X sells two products – A and B - and also a bundled version of both. The

company allocates common costs and revenues using the stand-alone method. The total revenue for the bundle in the last period was $30000 The following data is available concerning selling prices:

• Product A sells for $10/unit; 10000 units
• Product B sells for $15/unit; 20000 units
• The bundle sells for $20/unit

The amount of the bundle revenue allocated to product A is ________:

Company X has two main

departments – A and B - and two support departments - HR and Maintenance. The

company allocates support department costs in both departments using headcount

as a basis for allocation, as per the following data:

Company X produces three products, Product A, Product B and Product C, in a joint production process. The following information is available for the current period:

• Units produced: 1000 units of A; 2000 units of B and 3000 units of C
• Selling prices at split off: $150 per unit of A; $100 per unit of B; $50 per unit of C
• Separable costs: $120000 for A; $30000 for B and $45000 for C
• Total costs of processing the products up to the splitoff point: $495000
• There were no inventory balances of either product

Using the sales value at splitoff, what amount of the joint costs would be allocated to Product C?

The following information is available for company X, regarding their flexible budget. 

In their first year of operations, Company X completed 100000 units

costing $600000, before spoilage allocation.

The following information is available for the same period:

• 50000 units were sold
• 10000 units were 50% complete at the end of the year, at a cost of $80000

• all units are inspected at the end of the production process
• normal spoilage rate is 3.00%
• normal spoilage cost incurred was $23831
• abnormal spoilage cost incurred was $51756

Compute the portion of total spoilage costs that should be charged

against revenue in the period under analysis.

Company X is in the process of deciding whether to maintain or discontinue brand A. The following information refers to Brand A:

• Contribution margin = $65942

• Avoidable fixed costs = $59347,8

• Non-avoidable fixed costs = $52753,6

Company X should ___________

Company X uses the FIFO method and has two departments, Department 1 and Department 2. The following information is available for Department 1, that

is the

first stage of the manufacturing process of the company. Direct materials are added when the process is 20% complete and conversion costs are added homogeneously in the process.

• BWIP for this department was 80%

  complete in what concerns conversion costs

• EWIP was 62% complete

How much of the conversion costs were assigned to the EWIP units, assuming no spoilage?