Académique Documents
Professionnel Documents
Culture Documents
31
45,000
60,000
45,000
60,000
31
24,000
21,000
35,000
25,000
45,000
60,000
70,000
50,000
120,000
January
March
July
Materials
Conversion Costs
a. 10,000 X 40%
b. 8,000 X 75%
c. 16,000 X 25%
3-6
Equivalent units
of materials
10,000
Equivalent units
of conversion costs
12,000
Unit conversion
cost
$4.50
Unit materials
cost
$3.60
Unit conversion
cost
$4.50
Total manufacturing
cost per unit
$8.10
Equivalent Units
Unit Cost
40,000
$11
5,000
2,000
$ 4
$ 7
$440,000
$20,000
14,000
34,000
$474,000
Equivalent units
of materials
20,000
Equivalent units
of conversion costs
19,000
Unit materials
cost
$.80
Unit conversion
cost
$2.50
*$29,500 + $18,000
3-7
$59,400
(18,000 X $3.30)
(2,000 X $.80)
(1,000* X $2.50)
$1,600
2,500
4,100
$63,500
*2,000 X 50%
BRIEF EXERCISE 3-9
(a)
Materials
(b)
Conversion Costs
8,000
8,000
7,000
2,800
10,800
15,000
Equivalent
Units
Unit
Cost
Transferred out
Work in process, 3/1
Started and completed
0
30,000
$ 0
$18
5,000
2,000
$ 6
$12
Total Costs
Assigned
$
0
540,000
540,000
$594,000
3-8
$ 30,000
24,000
54,000
$594,000
-030,000
2,000
32,000
-030,000
5,000
35,000
SANDERSON COMPANY
(Partial) Production Cost Report
For the Month Ended March 31
COSTS
Materials
Unit costs
Total costs (a)
Equivalent units (b)
Unit costs (a) (b)
Costs to be accounted for
In process, March 1
Costs in March
Total costs
Costs accounted for
Transferred out
In process, March 1
Started and completed
(30,000 units X $18)
In process, March 31
Materials (5,000 X $6)
Conversion costs
(2,000 X $12)
Total costs
$210,000 *
35,000
$
6
Conversion
Costs
Total
$384,000 ** $594,000
32,000
$
12
$
18
$
0
594,000
$594,000
540,000
$ 30,000
24,000
54,000
$594,000
3-9
Equivalent units
of materials
20,000
Unit materials
cost
$3.75
Unit conversion
cost
$2.00
Total conversion
costs
2
$38,0002
Equivalent units
of conversion costs
19,000
$20,000 + $18,000
False
False
True
False
DO IT! 3-2
Work in ProcessMixing ............................................................
Work in ProcessPackaging.....................................................
Raw Materials Inventory......................................................
(To record materials used)
10,000
28,000
8,000
36,000
12,000
54,000
3-10
38,000
44,000
66,000
21,000
21,000
106,000
DO IT! 3-3
(a) Since materials are entered at the beginning of the process, the equivalent units of ending work in process are 12,000.
20,000 units + 12,000 units = 32,000 equivalent units of production for
materials.
(b) Since ending work in process is only 70% complete as to conversion
costs, the equivalent units of ending work in process for conversion
costs are 8,400 (70% X 12,000 units).
20,000 units + 8,400 units = 28,400 equivalent units of production for
conversion costs.
DO IT! 3-4
(a) 0 (Work in process, March 1) + 26,000* (Started into production) = 26,000
*22,000 + 4,000
(b) Equivalent units of production:
Materials
22,000
4,000
26,000
Conversion
22,000
1,600 (4,000 X 40%)
23,600
3-11
3-12
$396,000
$40,000
12,800
52,800
$448,800
SOLUTIONS TO EXERCISES
EXERCISE 3-1
1. True.
2. True.
3. False. Companies that produce soft drinks and computer chips would use
process cost accounting.
4. False. In a job order cost system, costs are tracked by individual jobs.
5. False. Job order costing and process costing track the same three manufacturing cost elements.
6. True.
7. True.
8. False. In a process cost system, multiple work in process accounts are
used.
9. False. In a process cost system, costs are summarized in a production
cost report for each department.
10. True.
EXERCISE 3-2
April 30
30
30
30
Work in ProcessCooking.....................................
Work in ProcessCanning.....................................
Raw Materials Inventory.................................
21,000
9,000
Work in ProcessCooking.....................................
Work in ProcessCanning.....................................
Factory Labor.....................................................
8,500
7,000
Work in ProcessCooking.....................................
Work in ProcessCanning.....................................
Manufacturing Overhead ...............................
31,500
25,800
Work in ProcessCanning.....................................
Work in ProcessCooking ...........................
53,000
30,000
15,500
57,300
53,000
3-13
EXERCISE 3-3
(a) Work in process, May 1
Started into production
Total units to be accounted for
Less: Transferred out
Work in process, May 31
(b) and (c)
400
1,400
1,800
1,500
300
Equivalent Units
Materials
Conversion Costs
1,500
1,500
300
1,800
120
1,620
Direct
Materials
Conversion Costs
$2,040
5,160
$7,200
1,800
$4.00
$1,550
4,120*
$5,670
1,620
$3.50
*$2,740 + $1,380
(d) Transferred out (1,500 X $7.50)
(e) Work in process
Materials (300 X $4.00)
Conversion costs (120 X $3.50)
3-14
$11,250
$ 1,200
420
$ 1,620
EXERCISE 3-4
1.
2.
3.
4.
5.
6.
7.
8.
9.
62,500
60,000
70,000
Work in ProcessCutting..............................................
Work in ProcessAssembly.........................................
Raw Materials Inventory ........................................
15,700
8,900
Work in ProcessCutting..............................................
Work in ProcessAssembly.........................................
Factory Labor ............................................................
33,000
27,000
30,240
30,960
Work in ProcessAssembly.........................................
Work in ProcessCutting.....................................
67,600
134,900
150,000
200,000
62,500
60,000
40,000
30,000
24,600
60,000
61,200
67,600
134,900
150,000
200,000
3-15
EXERCISE 3-5
(a)
January
May
0
11,000
11,000
0
23,000
23,000
9,000
2,000
11,000
16,000
7,000
23,000
(b)
(1)
January
March
May
July
Materials
(2)
Conversion Costs
10,200 ( 9,000 + 1,200)
12,900 (12,000 + 900)
21,600 (16,000 + 5,600)
10,600 (10,000 + 600)
EXERCISE 3-6
(a)
(1)
Materials
(2)
Conversion Costs
12,000
12,000
3,000
15,000
1,800
13,800
3-16
$66,000
$9,000
4,500
13,500
$79,500
EXERCISE 3-7
RICHARDS FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2014
Physical
Units
Quantities
Units to be accounted for
Work in process, March 1
Started into production
Total units
0
12,000
12,000
9,000
3,000
12,000
Equivalent Units
Conversion
Materials
Costs
9,000
3,000
12,000
9,000
600
9,600
Costs
Materials
Conversion
Costs
Unit costs
Total cost
Equivalent units
Unit costs (a) (b)
$33,000
12,000
$2.75
$60,000*
9,600
$6.25
(3,000 X 20%)
Total
$93,000
$9.00
$
0
93,000
$93,000
$81,000
$8,250
3,750
12,000
$93,000
*$24,000 + $36,000
3-17
EXERCISE 3-8
(a)
Materials
(2)
Conversion
Costs
17,000
17,000
(1)
1,000
400
17,400
18,000
(b)
Total cost
Equivalent units
Unit costs
(1)
$100,000 + $800,000
(2)
$ 70,000 + $365,000
Materials
$900,000(1)
18,000
$
50
Conversion
Costs
$435,000(2)
17,400
$
25
Total
$1,335,000
$
75
$1,275,000
$50,000
10,000
60,000
$1,335,000
EXERCISE 3-9
(a) Materials: 34,000* + 6,000 = 40,000
Conversion costs: 34,000* + (6,000 X 40%) = 36,400
*40,000 6,000
(b) Materials: $72,000/40,000 = $1.80
Conversion costs: ($81,000 + $101,000)/36,400 = $5.00
(c) Transferred out: 34,000 X $6.80 = $231,200
Ending work in process:
Materials (6,000 X $1.80)
Conversion costs (2,400 X $5.00)
Total
3-18
=
=
$10,800
12,000
$22,800
EXERCISE 3-10
(a)
Beginning work in process
Units started into production
Physical
Units
20,000
164,000
184,000
Equivalent Units
Materials
160,000
24,000
184,000
160,000
24,000
184,000
(b)
Costs incurred
Equivalent units
Unit costs
Materials
$101,200
184,000
$0.55
Conversion
Costs
160,000
14,400 (60% X 24,000)
174,400
Conversion
Costs
$348,800
174,400
$2.00
Total
$450,000
$2.55
$408,000
$13,200
28,800
42,000
$450,000
EXERCISE 3-11
(a)
Work in process, September 1
Units started into production
Units transferred out
Work in process, September 30
Physical
Units
1,600
38,400
40,000
35,000
5,000
40,000
3-19
35,000
35,000
5,000
500
35,500
40,000
(b)
Materials
Work in process, September 1
Direct materials
$ 20,000
177,200
$197,200
$ 43,180
382,820
$426,000
3-20
$592,550
$24,650
6,000
30,650
$623,200
EXERCISE 3-12
To:
David Skaros
From:
Student
Re:
Ending inventory
The reason for any confusion related to your departments ending inventory
quantity stems from the fact that the quantity can be measured in two different
ways, depending on what the information is used for.
The ending inventory quantity can be measured in physical units or equivalent
units. Physical units are actual units present without regard to the stage of
completion. Your departments ending inventory in physical units is at least
double the amount reported as equivalent units.
Equivalent units measure the work done on the physical units, expressed
in terms of fully completed units. Therefore, if your ending inventory contains
4,000 units which are 50% complete, that is equivalent to having 2,000 completed units at month end. Therefore, the ending inventory could be expressed
as containing 4,000 physical units or 2,000 equivalent units.
I hope this clears up any misunderstandings. Please contact me if you have
any further questions.
3-21
EXERCISE 3-13
THORPE COMPANY
Welding Department
Production Cost Report
For the Month Ended February 28, 2014
Quantities
Physical
Units
Equivalent Units
Conversion
Materials
Costs
(Step 1)
(Step 2)
15,000
45,000
60,000
49,000
11,000
60,000
Costs
49,000
11,000
60,000
Materials
(a) $198,000(1)
60,000
(b)
$3.30
49,000
2,200
51,200
(11,000 X 20%)
Conversion
Costs
$128,000(2)
51,200
$2.50
Total
$326,000
$5.80
$ 32,175
293,825
$326,000
$284,200
$36,300
5,500
41,800
$326,000
$18,000 + $180,000
$14,175 + $52,380 + $61,445
3-22
EXERCISE 3-14
(a)
0
1,200
1,200
Containers off-loaded
Containers in transit, April 30
Total containers
850
350
1,200
(b)
Containers off-loaded
Containers in transit, April 30
Total equivalent units
*350 x 40% = 140
**350 x 20% = 70
Equivalent Units
Physical
Direct
Conversion
Units
Materials
Costs
850
850
850
350
140*
70**
990
920
EXERCISE 3-15
(a)
Applications transferred out
Work in process, September 30
Equivalent units
Materials
800
200*
1,000
Conversion
Costs
800
120**
920
$26,400
$1,100
3,300
4,400
$30,800
3-23
*EXERCISE 3-16
(a)
Physical
Units
Applications completed:
Work in process, September 1
Started and completed
Work in process, September 30
Total units
Equivalent Units
Conversion
Materials
Costs
100
700
200
1,000
0
700
200
900
60
700
120
880
(b)
Materials: $4,500 900 = $5.00
Conversion costs: $21,340* 880 = $24.25
*($12,000 + $9,340)
Costs accounted for:
Applications completed:
Work in process, September 1
Conversion costs (60 x $24.25)
Started and completed (700 x $29.25)
Work in process, September 30:
Materials (200 x $5.00)
Conversion costs (120 x $24.25)
Total costs
$4,960
1,455
$ 6,415
20,475
1,000
2,910
$26,890
3,910
$30,800*
3-24
*EXERCISE 3-17
(a) (1) Materials:
Production Data
Physical
Units
Materials Added
This Period
Equivalent
Units
0
8,000
2,000
10,000
0
100%
100%
0
8,000
2,000
10,000
Production Data
Work in process, August 1
Started and completed
Work in process, August 31
Total
Work Added
This Period
0
100%
40%
0
8,000
2,000
10,000
Equivalent
Units
0
8,000
800
8,800
*$14,700 + $16,100
Costs to Be
Assigned
Assignment of Costs
Equivalent Unit
Units
Cost
Total Costs
Assigned
0
8,000
$0
$8
$
0
64,000
2,000
800
$4.50
$3.50
$ 9,000
2,800
$64,000
11,800
$75,800
3-25
*EXERCISE 3-18
(a) (1)
Materials
Work in process,
September 1
Started and completed
Work in process,
September 30
Total
(2)
Conversion Costs
Work in process,
September 1
Started and completed
Work in process,
September 30
Total
(b) Materials
Conversion costs
(c)
Costs to Be
Assigned
Total mfg. costs
*$207,200*
Physical
Units
Materials Added
This Period
Equivalent
Units
2,000
9,000
Q
0%
100%
0
9,000
1,000
12,000
100%
1,000
10,000
Physical
Units
Work Added
This Period
Equivalent
Units
2,000
9,000
80%
100%
1,600
9,000
1,000
12,000
40%
400
11,000
Unit
Cost
Total Costs
Assigned
$ 60,000 10,000 = $ 6
$132,000 11,000 = 12
$18
Assignment of Costs
Equivalent
Units
Transferred out
Work in process, 9/1
0
Conversion costs
1,600
Started and completed
9,000
Total costs transferred out
Work in process, 9/30
Materials
1,000
Conversion costs
400
Total costs
$ 0
$12
$18
$15,200
19,200
$ 6
$12
$6,000
4,800
$ 34,400
162,000
196,400
10,800
$207,200
*Work in process, September 1, $15,200 + materials costs $60,000 + labor and overhead
costs $132,000.
3-26
*EXERCISE 3-19
(a) Work in process, March 1
Started into production
Total units to be accounted for
Less: Transferred out
Work in process, March 31
800
1,200
2,000
1,500
500
(b) Materials:
Physical Materials Added Equivalent
Production Data
Units
This Period
Units
Work in process, March 1
800
%100
0
Started and completed
700
100%
700
Work in process, March 31
500
100%
500
2,000
1,200
Total
Unit cost = $6,600 1,200 = $5.50.
(c) Conversion costs:
Production Data
Work in process, March 1
Started and completed
Work in process, March 31
Total
Physical
Units
Work Added
This Period
Equivalent
Units
800
700
500
2,000
70%
100%
40%
560
700
200
1,460
$3,680
1,400
$5,080
$2,750
500
$3,250
3-27
*EXERCISE 3-20
MAJESTIC COMPANY
Welding Department
Production Cost Report
For the Month Ended February 28, 2014
Quantities
Equivalent Units
Conversion
Materials
Costs
(Step 2)
Physical
Units
(Step 1)
15,000
64,000
79,000
15,000
39,000*
54,000
25,000
79,000
0
39,000
39,000
25,000
64,000
*(64,000 25,000)
Costs
Unit costs (Step 3)
Costs in February
Equivalent units
Unit costs (a) (b)
Materials
(a)
(b)
$192,000 (1)
64,000
$3.00
Conversion
Costs
$103,500 (2)
57,500
$1.80
3-28
Total
$295,500
$4.80
$ 32,175
295,500
$327,675
$32,175
24,300
$ 56,475
187,200
$243,675
75,000
9,000
84,000
$327,675
3-29
SOLUTIONS TO PROBLEMS
PROBLEM 3-1A
1.
2.
3.
4.
5.
6.
7.
8.
9.
3-30
300,000
Work in ProcessMixing.......................................
Work in ProcessPackaging...............................
Raw Materials Inventory................................
210,000
45,000
Factory Labor.............................................................
Wages Payable .................................................
258,900
Work in ProcessMixing.......................................
Work in ProcessPackaging...............................
Factory Labor....................................................
182,500
76,400
810,000
672,000
300,000
255,000
258,900
258,900
810,000
144,000
816,000
Work in ProcessPackaging...............................
Work in ProcessMixing..............................
979,000
1,315,000
Accounts Receivable...............................................
Sales Revenue ..................................................
2,500,000
1,604,000
979,000
1,315,000
2,500,000
1,604,000
PROBLEM 3-2A
0
22,000
22,000
20,000
2,000
22,000
Conversion Costs
20,000
20,000
2,000
800
20,800
22,000
Unit Costs
Materials
Conversion costs
Total unit cost
*$53,600 + $112,800
(d) Costs accounted for
Transferred out (20,000 X $17.00)
Work in process, June 30
Materials (2,000 X $9.00)
Conversion costs (800 X $8.00)
Total costs
$340,000
$18,000
6,400
24,400
$364,400
3-31
ROSENTHAL COMPANY
Molding Department
Production Cost Report
For the Month Ended June 30, 2014
Quantities
Physical
Units
Equivalent Units
Conversion
Materials
Costs
(Step 1)
(Step 2)
0
22,000
22,000
20,000
2,000
22,000
Costs
20,000
2,000
22,000
Materials
(a) $198,000
22,000
(b)
$9.00
20,000
800
20,800
Conversion
Costs
$166,400
20,800
$8.00
(2,000 X 40%)
Total
$364,400
$17.00
$
0
364,400
$364,400
3-32
$340,000
$18,000
6,400
24,400
$364,400
PROBLEM 3-3A
C10
Chairs
0
19,000
19,000
0
16,000
16,000
16,000
3,000
19,000
15,500
500
16,000
16,000
16,000
3,000
19,000
1,800
17,800
C10 Chairs
Conversion
Materials
Costs
15,500
15,500
500
16,000
400
15,900
3-33
T12
Tables
$20
C10
Chairs
$18
19
$39
13
$31
$234,200 + $104,000
(b)
$110,000 + $96,700
(4)
T12 Tables
Costs accounted for
Transferred out (16,000 X $39)
Work in process
Materials (3,000 X $20)
Conversion costs (1,800 X $19)
Total costs
$624,000
$60,000
34,200
94,200
$718,200
C10 Chairs
Costs accounted for
Transferred out (15,500 X $31)
Work in process
Materials (500 X $18)
Conversion costs (400 X $13)
Total costs
3-34
$480,500
$9,000
5,200
14,200
$494,700
Quantities
Physical
Units
Equivalent Units
Conversion
Materials
Costs
(Step 1)
(Step 2)
0
19,000
19,000
16,000
3,000
19,000
16,000
3,000
19,000
Costs
Unit costs (Step 3)
Total cost
Equivalent units
Unit costs (a) (b)
(a)
(b)
16,000
1,800 (3,000 X 60%)
17,800
Materials
Conversion
Costs
$380,000
19,000
$
20
$338,200
17,800
$
19
Total
$718,200
$
39
0
718,200
$718,200
$624,400
$60,000
34,200
94,200
$718,200
3-35
PROBLEM 3-4A
(a)
Physical
Units
Units to be accounted for
Work in process, November 1
Started into production
Total units
35,000
660,000
695,000
670,000
25,000
695,000
Equivalent Units
Conversion
Materials
Costs
670,000
25,000
695,000
670,000
10,000*
680,000
*25,000 X 40%
Beginning work in
process
Added during month
Total
Materials cost
Conversion costs
$ 79,000
1,589,000
$1,668,000
$ 48,150
563,850
$612,000
695,000
680,000
$2.40
$.90
Equivalent units
Cost per unit
($225,920 + $337,930)
3-36
$2,211,000
$60,000
9,000
69,000
$2,280,000
RIVERA COMPANY
Assembly Department
Production Cost Report
For the Month Ended November 30, 2014
Quantities
Physical
Units
Equivalent Units
Conversion
Materials
Costs
(Step 1)
(Step 2)
35,000
660,000
695,000
670,000
25,000
695,000
Costs
670,000
25,000
695,000
Materials
670,000
10,000 (25,000 X 40%)
680,000
Conversion
Costs
(a) $1,668,000
(b)
695,000
$2.40
$612,000
680,000
$.90
Total
$2,280,000
$3.30
$ 127,150
2,152,850
$2,280,000
$60,000
$2,211,000
9,000
69,000
$2,280,000
3-37
PROBLEM 3-5A
(a)
(1)
Physical
Units
Units to be accounted for
Work in process, July 1
Started into production
Total units
500
1,250
1,750
1,150
600
1,750
Equivalent Units
Conversion
Materials
Costs
1,150
600
1,750
1,150
240*
1,390
*600 X 40%
(2)
Materials cost
Beginning work
in process
Added during month
Total
Conversion costs
$ 750
2,400
$3,150
$ 600
2,875
$3,475
Equivalent units
1,750
1,390
$1.80
$2.50
($1,580 + $1,295)
3-38
$4,945
$1,080
600
1,680
$6,625
MORSE COMPANY
Basketball Department
Production Cost Report
For the Month Ended July 31, 2014
Quantities
Physical
Units
Equivalent Units
Conversion
Materials
Costs
(Step 1)
(Step 2)
500
1,250
1,750
1,150
600
1,750
Costs
Unit costs (Step 3)
Costs in July
Equivalent units
Unit costs (a) (b)
(a)
(b)
1,150
600
1,750
1,150
240
1,390
Materials
Conversion
Costs
$3,150
1,750
$1.80
$3,475
1,390
$2.50
Total
$6,625
$4.30
$1,350
5,275
$6,625
$4,945
$1,080
600
1,680
$6,625
3-39
PROBLEM 3-6A
Equivalent Units
Conversion
Materials
Costs
120,000
120,000
120,000
50,000
170,000
30,000
150,000
20,000
140,000
3-40
$282,000
$48,000
15,000
63,000
$345,000
*PROBLEM 3-7A
(a) Bicycles
(1) Equivalent unitsMaterials
Materials
Added
This Period
Physical
Units
Work in process, March 1
Started and completed
Work in process, March 31
Total
200
950 (1,250 300)
300
1,450
Equivalent
Units
0%*
100%
100%
0
950
300
1,250
Equivalent unitsConversion
Conversion
Added
This Period
Physical
Units
Work in process, March 1
Started and completed
Work in process, March 31
Total
200
950 (1,250 300)
300
1,450
Equivalent
Units
20% (1 .8)
100%
40%
40
950
120
1,110
Materials
Conversion
$50,000
1,250
$
40
**$55,500**
1,110
$
50
3-41
Assignment of Costs
Transferred out
Work in process, March 1
Conversion
Started and completed
Total costs transferred out
Work in process, March 31
Materials
Conversion costs
Total costs
Equivalent Unit
Units
Cost
40
950
$50
$90
Total Costs
Assigned
$19,280
2,000
85,500
$106,780
300
120
$40
$50
12,000
6,000
18,000
$124,780
Tricycles
(1) Equivalent unitsMaterials
Physical
Units
Work in process, March 1
Started and completed
Work in process, March 31
Total
100
740 (800 60)
60
900
Materials
Added
This Period
*
Equivalent
Units
0%*
100%
100%
0
740
60
800
Equivalent unitsConversion
Physical
Units
Work in process, March 1
Started and completed
Work in process, March 31
Total
3-42
100
740 (800 60)
60
900
Conversion
Added
This Period
Equivalent
Units
25% (1 .75)
100%
25%
25
740
15
780
Materials
Conversion
$30,400
800
$
38
$35,100**
780
$
45
Assignment of Costs
Equivalent
Units
25
740
Unit
Cost
Total Costs
Assigned
$45
$83
$ 6,125
1,125
61,420
$68,670
60
15
$38
$45
2,280
675
2,955
$71,625
3-43
RONDELI COMPANY
Production Cost ReportBicycles
For the Month Ended March 31
Quantities
Physical
Units
Equivalent Units
Conversion
Materials
Costs
(Step 1)
(Step 2)
200
1,250
1,450
200
950
300
1,450
Costs
Materials
$50,000
1,250
$
40
0
950
300
1,250
40
950
120
1,110
Conversion
Costs
$ 55,500
1,110
$
50
Total
$105,500
$
90
$ 19,280
105,500*
$124,780
$19,280
2,000
85,500
12,000
6,000
$106,780
18,000
$124,780
3-44
BYP 3-7
(a) Some of the costs that the company now faces include:
Monetary damages: The company paid $21.4 million in fines as a
result of an OSHA investigation; $1.6 billion to compensate those
affected by the accident; and $1 billion to repair and update its
refinery (plus an additional $250 million to install safety valves)
Bad publicity
Lost sales
Cost of cleaning up the affected area including transporting workers
to the site; housing workers near the site; per diem for cleanup
workers; safety equipment for the workers
Transportation and storage/disposal fees for any contaminants
removed from the area
Legal fees associated with lawsuits/settlements
Reimburse the Coast Guard for any oil containment equipment
provided
Possible air/water testing for an extensive time following the accident
(b) Some steps that the company could have taken to reduce the environmental failure costs include:
3-68