Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by 20%. The company's controller suspects that the year-end dollar balances shown below in the inventory accounts may be incorrect. Units Costs Work in process, December 31 (materials 100% complete; conversion 50% complete) Finished goods, December 31 41,000 46,000 $ 76,000 $129,500 There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department. A review of the company's inventory and cost records shows the following: Costs Units Materials Conversion Work in process, beginning of year (materials 100% complete; conversion 80% complete) 36,000 Started into production Costs added during the year Units completed during the year 845,000 840,000 $ 38,000 $ 64,000 $766,000 $2,160,000 Required: 1. Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year. (Round your "Cost per equivalent unit" answers to 2 decimal places.) Equivalent units of production. Cost per equivalent unit Materials Conversion 840,000 2. Determine the amount of cost that should be assigned to the ending work in process and finished goods inventories. Cost of ending work in process inventory Cost of finished goods inventory Materials Conversion Total $ 0 $ 0 3. Prepare the necessary correcting journal entry to adjust the work in process and finished goods inventories to the correct balances as of December 31. (Round intermediate calculations to 2 decimal places.) View transaction list Journal entry worksheet A Record the entry to adjust the work in process and finished goods inventories Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by 20%. The company's controller suspects that the year-end dollar balances shown below in the inventory accounts may be incorrect. Units Costs Work in process, December 31 (materials 100% complete; conversion 50% complete) Finished goods, December 31 41,000 46,000 $ 76,000 $129,500 There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department. A review of the company's inventory and cost records shows the following: Costs Units Materials Conversion Work in process, beginning of year (materials 100% complete; conversion 80% complete) 36,000 Started into production Costs added during the year Units completed during the year 845,000 840,000 $ 38,000 $ 64,000 $766,000 $2,160,000 Required: 1. Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year. (Round your "Cost per equivalent unit" answers to 2 decimal places.) Equivalent units of production. Cost per equivalent unit Materials Conversion 840,000 2. Determine the amount of cost that should be assigned to the ending work in process and finished goods inventories. Cost of ending work in process inventory Cost of finished goods inventory Materials Conversion Total $ 0 $ 0 3. Prepare the necessary correcting journal entry to adjust the work in process and finished goods inventories to the correct balances as of December 31. (Round intermediate calculations to 2 decimal places.) View transaction list Journal entry worksheet A Record the entry to adjust the work in process and finished goods inventories Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Question 8 10 Points Boswell company reported the following information for the current year: Sales (50,000 units) $1,000,000, direct materials and direct labour $500,000, other variable costs...
-
Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by 10%. The company's controller suspects that the year-end...
-
Danis Inc is an American firm. The company will receive 626,000 British pounds (GBP) from one of its trading partners in 30 days. The company has obtained an analyst report for possible foreign...
-
The market performance ratios for Bispectacle are presented below. Calculate the entity's dividend payout ratio, interpret the ratio, and explain why an investor would be interested in this ratio....
-
Do you consider computers to possess intelligence? Why or why not? Are you worried about how your career plans might be affected by machine learning and AI? What do you think it means for global...
-
Ruiz Restaurant provides French cuisine dining at a popular tourist destination on the north coast of New South Wales. The business has been doing well lately and the number of tourists dining in...
-
For the following situations, indicate the most appropriate type of file organization. Explain your choice. a. A local utility company has 80,000 residential and 10,000 commercial customers. The...
-
Multiply: (3x-1) (2x + 7y-9) Select the correct
-
Demonstrate competency in the behavioral finance you are required to complete the following learning demonstration. 1. Executive summary 2) A numeric example demonstrating violations of expected...
-
Solve for x : 3x 1 1 X 3 -5 5+5 (no fractions) (in the form ax + bx + c = 0) Question Help: Message instructor (type: "x=? is not applicable" if one of the solutions is not applicable) Submit...
-
DEF stock is trading in an auction market with partial fills permitted. Four investors submit bids to buy shares and four other investors respond with offers to sell their current shares as follows:...
-
The Garcia Industries balance sheet and income statement for the year ended Year 1 are as follows: Balance Sheet (in Millions of Dollars) Assets Liabilities and Stockholders' Equity Cash $5.0...
-
what is the most important learning you take with you from the perspective of you as a person? what is the most important learning you will take with you into a management rol If I have a preference...
-
Solve the given system of equations by the addition-subtraction method. 6x-y=46 x+8y = 24
-
What are the prevailing attitudes in your culture toward the following: Negotiating methods, Truth in advertising, Company-worker loyalty, Women's place in society, and the Protestant work ethic?...
-
Why are stocks usually more risky than bonds?
-
How do you classify a lathe? Explain briefly.
-
Differentiate between live and dead centres of a lathe.
-
List the various lathe accessories.
Study smarter with the SolutionInn App