Reference no: EM132582991

Question 1: Vejar Inc., a local company, produces a small standard component in a process operation. There is a quality control check at the end of processing, and items which fail this check are sold off as scrap for $1.80 per unit. The expected rate of rejection is 10%. Normal loss is not given any cost, except that whatever scrap value it has is credited to the process account. The cost of abnormal loss, net of scrap value, is written off to the profit and loss account.

Data for July, 2019 are as follows:

No work in process at the beginning of the month

Materials input                  1,000 units               5,100
Conversion cost                                              3,000
Output to finished goods                               800 units

REQUIRED:

What was the full cost of the finished output that passed the quality control check?

Question 2: In the manufacture of its only product, Consunji Manufacturing Co. experiences average evaporation loss of 12% in the first department, the Cooking Process. Production data for October 2019 follows:

In process October 1 (1/4 complete)                29,100 liters
Started in process during October                     50,000 liters
Completed and transferred to next process         61,600 liters
In process, October 31, (1/2 complete)                   ? liters

REQUIRED:

1. The closing work in process inventory consisted of how many liters?

2. How many liters is the quantity of the evaporation loss?