Question:

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Step: 1

The Flow Schedule For Production At Different Level Of Inspection Is Given Below: -

Flow Of Production Inspection Inspection Inspection

At 15% At 40% At 100%

Work In Process, Beginning (20%) 14000 14000 14000

Started During March 120000 120000 120000

To Account For 134000 134000 134000

Good Units Completed And Transferred Out 113000 113000 113000

Normal Spoilage 6600 7440 6780

Abnormal Spoilage 3400 2560 3220

Work In Process, Ending 11000 11000 11000

Accounted For 134000 134000 134000

Explanation

Normal Spoilage At 15% Inspection = (120,000 - 10,000) * 6% = 6,600 Units

Explanation

Normal Spoilage At 40% Inspection = (134,000 - 10,000) * 6% = 7,440 Units

Explanation

Normal Spoilage At 100% Inspection = 113,000 * 6% = 6,780 Units

Explanation

Abnormal Spoilage = 10,000 Units - Normal Spoilage (It Applies For All The Inspection Levels)

Workings:

`Good Units Completed And Transfered Out = Work In Process, Beginning + Started During March - Normal Spoilage - Work In Process, Ending

14000 + 120000 - 10000 - 11000 = 113,000`

Final Answer

Hence, The Final Answer Is As Follows: -

Flow Of Production Inspection Inspection Inspection

At 15% At 40% At 100%

Work In Process, Beginning 14000 14000 14000

Started During March 120000 120000 120000

To Account For 134000 134000 134000

Good Units Completed And Transferred Out 113000 113000 113000

Normal Spoilage 6600 7440 6780

Abnormal Spoilage 3400 2560 3220

Work In Process, Ending 11000 11000 11000

Accounted For 134000 134000 134000

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