Parandah Electronics Ltd., located in England, assembles a standard electrical component from parts it purchases from various
Question:
The companys management would like some additional information about Mays operation in the Assembly Department. (The currency in England is the pound, denoted by the symbol £.)
Required:
1. How many units were started and completed during May?
2. What were the equivalent units for May for materials and conversion costs?
3. What were the costs per equivalent unit for May? The following additional data are available concerning the departments costs:
4. Verify the accountants ending work in process inventory figure (£12,450) given in the report.
5. The new manager of the Assembly Department is asked to estimate the incremental cost of processing an additional 1,000 units through the department. He takes the unit cost for an equivalent whole unit that you computed in (3) above and multiplies this figure by 1,000. Will this method yield a valid estimate of incremental cost? Explain.
Step by Step Answer:
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb