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IP Beginning = 4,000
= 24,000

Spoiled Units = 3,000

SIP = 26,000 F&T

Raw materials added at the start


IPB were 90% as to CC
units are 75% to CC

IPE 80%

Inspection takes place when

The Company usually experience a 5% loss based on completed units Cost:


IPB: Mat - 32,400 Lab - 26,400
Current Cost: Mat - 111,600
Requirements:
a. Total Cost of Transfer
b. Total Cost of IPE
c. Total Cost of Abnormal LU

OH - 28,500
Lab - 88,200

OH - 114,750

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