If the beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and the completed good units are 8000 then total spoilage will be ____________?
Correct answer: C. 1300 units
- A. 1200 units
- B. 990 units
- C. 1300 units
- D. 1000 units
Explanation
Units to account for are 2,600 beginning WIP plus 9,000 started, or 11,600 units. Since 8,000 were completed and 2,300 remain in ending WIP, spoilage is 11,600 minus 10,300, equal to 1,300 units.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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