PC With Spoilage Rework
-
Upload
vijay-glen-jr-gangadeen -
Category
Documents
-
view
219 -
download
0
Transcript of PC With Spoilage Rework
-
8/10/2019 PC With Spoilage Rework
1/32
Compliance Non-ComplianceCosts Costs
Prevention Appraisal Internal External Spoilage Rework
FC
1
-
8/10/2019 PC With Spoilage Rework
2/32
2
-
8/10/2019 PC With Spoilage Rework
3/32
Normal [Expected] AbnormalSpoilage Spoilage
Difference betweenactual & normal
spoilage
3
-
8/10/2019 PC With Spoilage Rework
4/32
AS NS AS NS
LOSS GAIN
4
-
8/10/2019 PC With Spoilage Rework
5/32
Spoilage
Ins pt before Ins ptE WIP % after E WIP %
5
-
8/10/2019 PC With Spoilage Rework
6/32
COG E WIPCompleted
6
-
8/10/2019 PC With Spoilage Rework
7/32
Allocate NS
Only to COG completed
7
-
8/10/2019 PC With Spoilage Rework
8/32
0% 100%
B ESNS AS
C
Good
Spoiled
8
-
8/10/2019 PC With Spoilage Rework
9/32
DM DL CCCompletedNS
ANSE WIP
10
-
8/10/2019 PC With Spoilage Rework
10/32
Cost DM DL CCB WIPCURRENT
COST TO a/c for
Calculate the cost per E.U?Prepare the cost distribution
schedule.
11
-
8/10/2019 PC With Spoilage Rework
11/3214
-
8/10/2019 PC With Spoilage Rework
12/32
Normal [Expected] AbnormalRework Rework
Difference betweenactual & normal
rework
15
-
8/10/2019 PC With Spoilage Rework
13/32
AR NR AR NR
LOSS GAIN
16
-
8/10/2019 PC With Spoilage Rework
14/32
Rework
Ins pt before Ins ptE WIP % after E WIP %
17
-
8/10/2019 PC With Spoilage Rework
15/32
COG E WIPCompleted
18
-
8/10/2019 PC With Spoilage Rework
16/32
Allocate NR
Only to COG completed
19
-
8/10/2019 PC With Spoilage Rework
17/32
0% 100%
B ES
C
Calculate normal reworked units.Determine actual reworked units.Compute abnormal reworked units, if any.
20
-
8/10/2019 PC With Spoilage Rework
18/32
DM DL CCCompletedNR
ANRE WIP
22
-
8/10/2019 PC With Spoilage Rework
19/32
-
8/10/2019 PC With Spoilage Rework
20/32
26
-
8/10/2019 PC With Spoilage Rework
21/32
In relation to Spoilage [Refer to slides 2 11]: How much is actual spoilage, in units? What % and activity volume is used to express
normal spoilage? How much is abnormal spoilage?
How is abnormal spoilage treated? How is normal spoilage allocated to the cost of
production?Dependent on where Ending WIP inventory %completion lies in relation to the Spoilage Inspection
Point.If E WIP % is beyond Spoilage Ins Pt NS allocated to COGcompleted & E WIPIf E WIP % is before Spoilage Ins Pt NS allocated to COGcompleted only
27
-
8/10/2019 PC With Spoilage Rework
22/32
In relation to Rework [Refer to slides 14 23]: How much is actual reworked units? What % and activity volume is used to express
normal rework? How much is abnormal rework?
How is abnormal rework treated? How is normal rework allocated to the cost of
production?Dependent on where Ending WIP inventory %completion lies in relation to the Rework Inspection
Point.If E WIP % is beyond Rework Ins Pt NS allocated to COGcompleted & E WIPIf E WIP % is before Rework Ins Pt NS allocated to COGcompleted only
28
-
8/10/2019 PC With Spoilage Rework
23/32
In relation to both Spoilage & Rework: Where does the Rework Inspection Point lie in
relation to the Spoilage Inspection Point?
29
RW
Ins Pt
RW
Ins Pt
SP
Ins Pt
SP
Ins Pt
Where to allocate costs of NR?
-
8/10/2019 PC With Spoilage Rework
24/32
NS AS
30
-
8/10/2019 PC With Spoilage Rework
25/32
31
COGCompleted E WIP
NR is now allocatedin 4 ways: NS
AS
-
8/10/2019 PC With Spoilage Rework
26/32
32
COGCompletedR is now allocated
in 3 ways:
NS AS
-
8/10/2019 PC With Spoilage Rework
27/32
DO NOTAllocate NS
toNR & AR
33
-
8/10/2019 PC With Spoilage Rework
28/32
COG E WIPCompleted
34
Allocation of NS
-
8/10/2019 PC With Spoilage Rework
29/32
-
8/10/2019 PC With Spoilage Rework
30/32
0% 100%
B ES
RWBAL
36
G
S
RW
Determine actual reworked units.Calculate normal reworked units.
Compute abnormal reworked units, if any.
Determine good units.Calculate normal spoilage.Compute abnormal spoilage, if any.
-
8/10/2019 PC With Spoilage Rework
31/32
DM DL CCCompletedNS
ANSNRANRE WIP
38
-
8/10/2019 PC With Spoilage Rework
32/32
Cost DM DL CCB WIPCURRENT
COST TO a/c for
Calculate the cost per E.U?Prepare the cost distribution
schedule.