week 5 qquiz

Topics: Manufacturing, Supply chain management terms, Inventory Pages: 3 (428 words) Published: May 12, 2014
Week 5 : Spoilage and Inventory Management - Quiz

1.
(TCO 6) MedicalTechnical, Inc. manufactures surgical instruments to the exacting specifications of various customers. During April 2005, Job 911 for the production of 4,500 instruments was completed at the following costs per unit. Direct materials$ 60

Direct manufacturing labor20
Allocated manufacturing overhead 80
$160
Final inspection of Job 911 disclosed 100 defective units and 50 spoiled units. The defective instruments were reworked at a total cost of $12,000, and the spoiled instruments were sold to a jobber for $3,000.

If the costs associated with spoilage and reworked units are considered as normal to manufacturing operations, the unit cost of the good units produced on Job 911 is (Points : 6)
$165.
$164.
$162.
$160.

2.
(TCO 6) Walbreck Company had the following production for the month of August. Units
Work in process, August 1 6,000
Started during August24,000
Completed and transferred to finished goods18,000
Abnormal spoilage incurred3,000
Work in process, August 31 9,000
Materials are added at the beginning of the process. As to conversion cost, work in process was 20% complete at the beginning and 70% complete at the end of the month. Spoilage is detected at the end of the process.

Using the weighted-average method, the equivalent units for August, with respect to conversion costs, were (Points : 6)
30,000.
24,300.
23,700.
27,300.

3. (TCO 6) The sale of scrap from a manufacturing process usually would be recorded as a(n) (Points : 6) increase in manufacturing overhead control.
decrease in manufacturing overhead control.
increase in finished goods control.
decrease in finished goods control.

4. (TCO 6) Libations Corporation manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The...
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