The opening inventory of a process is 40,000 units which are deemed 75% completed with respect...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The opening inventory of a process is 40,000 units which are deemed 75% completed with respect to material and 50% completed with respect to direct labour and overheads. Opening material cost is $300,000, while direct labour and production overheads are $500,000 and $1,500,000 respectively. During the period 60,000 units were started. Material cost for the period was $600,000. Meanwhile, direct labour and production overheads incurred were $1,000,000 and $1,100,000 respectively. It was ascertained that there were 20,000 units at the end of the period which are 50% completed for materials and 10% complete for labour and production overheads. Required: a Using the Weighted Average cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost. 110.5 marks] b. Using the FIFO cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost. [5.5 marks] The opening inventory of a process is 40,000 units which are deemed 75% completed with respect to material and 50% completed with respect to direct labour and overheads. Opening material cost is $300,000, while direct labour and production overheads are $500,000 and $1,500,000 respectively. During the period 60,000 units were started. Material cost for the period was $600,000. Meanwhile, direct labour and production overheads incurred were $1,000,000 and $1,100,000 respectively. It was ascertained that there were 20,000 units at the end of the period which are 50% completed for materials and 10% complete for labour and production overheads. Required: a Using the Weighted Average cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost. 110.5 marks] b. Using the FIFO cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost. [5.5 marks]
Expert Answer:
Answer rating: 100% (QA)
Solution a b A using the weighted Averige cast flow Material ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The opening inventory of a process is 20,000 units which are deemed 40% complete. Opening material costs are $200,000. Opening inventory of conversion costs are $800,000. All materials are added at...
-
a. Assume that 80 percent of the units completed in April are sold in that month. What will be the difference in reported profit between the two approaches? b. Which approach is most appropriate from...
-
During August, Panama Paint Company completed 90,000 cans of paint. At the beginning of August, the company had 800 units that were 75 percent complete with respect to material and 50 percent...
-
PMOs should help to ensure that organizations use the resources in the best way. This contributes to: Group of answer choices Effective use or organizations and alignment Effectiveness, efficiency,...
-
Kioda Corporation assembles various components used in the electronics industry. The companys major product, a computer chip, is the result of assembling three parts: X1, Y2, and Z3.The following...
-
The diagram below depicts the demand curve for "mini burgers" in a local fast-food market. Use the information in this diagram to answer the questions that follow. a. What is the price elasticity of...
-
How to draft a complaint?
-
Tech Systems manufactures an optical switch that it uses in its final product. Tech Systems incurred the following manufacturing costs when it produced 68,000 units last year: Direct...
-
Consider the series 2 4 6 + + +.. 3 9 27 Write the series in sigma notation and simplify. Assume n starts with 1.
-
Southwestern University (SWU), a large state college in Stephenville, Texas, 30 miles southwest of the Dallas/Fort Worth metroplex, enrolls close to 20,000 students. In a typical town-gown...
-
Joe Klyne's three children, John, Karen, and Terri, want to earn some money for personal expenses. Mr. Klyne has chosen three chores for his children: mowing the lawn, painting the garage door, and...
-
In 2022, you had a very strong sales performance. As the Sales Representative for the San Diego territory you achieved a strong sales year (specifics below), as well as assumed a strong base salary...
-
What technique(s) would you use to employ a PFAS with a 6 foot shock absorbing lanyard with 3.5 foot deceleration distance, for a work that was around 6 foot tall, if the distance to the lower...
-
Unitongue Talk, Inc. just paid a $2.00 annual dividend. Investors believe that the dividends will grow at a rate of 20% per year for each of the next two years and 5% per year thereafter. Assuming a...
-
Four runners completed a relay race where they each ran 800 m(for a total of 3200 m). If their times were 1 minute 55 seconds, 2minutes 2 seconds, 1 minute 58 seconds, and 1 minute 52 seconds,what...
-
The half-life for thorium-227 is 18.72 days. This means that thorium-227 decays In 2 exponentially at a rate of 18.72 per day What fraction of its initial radioactivity will remain after 5 days?...
-
Search the internet and Read this article "a few useful things to Know about machine Learning" by Pedro domingos Pick two of the 12 key lessons outlined in the review paper by Domingos, prepare a...
-
Sportique Boutique reported the following financial data for 2012 and 2011. Instructions(a) Calculate the current ratio for Sportique Boutique for 2012 and 2011.(b) Suppose that at the end of 2012,...
-
Overhead costs in Logan Company totaled $8,100,000 last year, and Product RK used 600 direct labor hours out of the company's total of 50,000 direct labor hours used. All overhead costs are...
-
What are some non-quantifiable benefits of investing in such advanced manufacturing technologies as CIM, FMS, and robotics?
-
What is the standard error of the estimate?
-
The financial management process is important for auditors because of its role in helping to form expectations about financial statement results. To illustrate this concept, explain how an...
-
Consider Manny Corp., our military outfitting operation from Chapter 10. Its financial data is reprinted here for convenience. a. If you were the auditor assigned to perform substantive analytical...
-
Following are some routine procedures for the audit of payroll (discussed in the Appendix). For each procedure, (1) state whether it is a test of controls or a substantive test, (2) state which...
Study smarter with the SolutionInn App