[Paras316]

Hi All,

can someone please help with the below question? I just can’t figure it out.

Kepler Optics makes lenses for telescopes. Because Kepler will only sell lenses of the highest quality, the normal spoilage during a reporting period is 1,000 units. At the beginning of the current reporting period, Kepler had 2,200 units in inventory, and during the period, production was started and completed on 4,000 units. Units in inventory at the end of the current reporting period were 1,500, and the units transferred out were 3,000. During this period, the abnormal spoilage for Kepler’s lens production was?

I apologize if I posted it in the wrong section. This is my first time posting here after 4 years! 🙂

[smazthespaz]

Beg Inv + Prod – Xfers out – Total Spoilage = End Inv

2200 + 4000 – 3000 – x = 1500

x = 1700

Total Spoilage = Normal Spoilage + Abnormal Spoilage

1700 = 1000 + x

x = 700

REG - 83 11/24/14
AUD - 94 2/17/15
FAR - 93 5/26/15
BEC - 90 8/10/15

[Paras316]

Thanks so much for your quick help! I really appreciate it.

[Paras316]

Stuck on another question. Someone please advise! – Calculate the exponential smoothing forecast for Week 3 using a smoothing constant of 0.2. The forecast for Week 1 is 32. The time-series data follows.

Week

Sales

1 32

2 36

[Paras316]

One more – cost of leveling land to make it usable for building should be included in the cost of Land or building on balance sheet? Thanks all!!

[Paras316]

No one can help with the above question?! I know there are a lot of sharp people on this site! I will really appreciate any help.

[Anonymous]

cost of land

[Paras316]

Thanks Blue! Just curious – how hard was the CMA exam?

[Paras316]

Ok I have one more (exam is on monday!!) – how do we report inventory write down loss? I know it is a separate line item on income statement. The question is where on income statement does it go? COGS? or period cost?

Again, your help is appreciated greatly. Thanks!

[Author]

Replies