Compute the cost per equivalent unit for each cost category. Lonsdale Brewing Company (LBC) is a small
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Lonsdale Brewing Company (LBC) is a small independent organic certified brewery in North Vancouver. LBC has two production departments, Brewing and Bottling. This question relates to the Bottling Department. For processing in the Bottling Department, goods are transferred in from the Brewing Department. LBC uses the weighted average method in its process-costing system. In the Bottling Department, Direct Materials are added at two stages: material A is added at the 20% completion stage and material B is added at the 93% completion stage. Inspection occurs when units are 90% complete and conversion costs are incurred uniformly throughout the process. The following data were recorded for Bottling Department in the month of January. Units in beginning work-in-process inventory 38,000 % Completion of beginning work-in-process units Units transferred in from Brewing dept Units completed and transferred out Units in ending work-in-process inventory % Completion of ending work-in-process units Costs related to opening inventory Transferred-in costs Direct material - A- costs Direct material - B-costs Conversion costs Costs added during current period: Transferred-in costs Direct materials - A Direct materials - B Conversion costs 75% 120,000 125,000 13,000 95% $160,000 78,000 ? 124,000 $648,000 320,000 480,000 1,312,000 Normal spoilage is considered to be 6% of the units that pass inspection. The company pro-rates normal spoilage between cost of goods manufactured and ending work-in-process. Lonsdale Brewing Company (LBC) is a small independent organic certified brewery in North Vancouver. LBC has two production departments, Brewing and Bottling. This question relates to the Bottling Department. For processing in the Bottling Department, goods are transferred in from the Brewing Department. LBC uses the weighted average method in its process-costing system. In the Bottling Department, Direct Materials are added at two stages: material A is added at the 20% completion stage and material B is added at the 93% completion stage. Inspection occurs when units are 90% complete and conversion costs are incurred uniformly throughout the process. The following data were recorded for Bottling Department in the month of January. Units in beginning work-in-process inventory 38,000 % Completion of beginning work-in-process units Units transferred in from Brewing dept Units completed and transferred out Units in ending work-in-process inventory % Completion of ending work-in-process units Costs related to opening inventory Transferred-in costs Direct material - A- costs Direct material - B-costs Conversion costs Costs added during current period: Transferred-in costs Direct materials - A Direct materials - B Conversion costs 75% 120,000 125,000 13,000 95% $160,000 78,000 ? 124,000 $648,000 320,000 480,000 1,312,000 Normal spoilage is considered to be 6% of the units that pass inspection. The company pro-rates normal spoilage between cost of goods manufactured and ending work-in-process.
Expert Answer:
Answer rating: 100% (QA)
To compute the cost per equivalent unit for each cost category we need to calculate the equivalent units of production for both direct materials and c... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
Posted Date:
Students also viewed these accounting questions
-
Flu Buster Ltd manufactures a type of oral flu vaccine in capsules. These are produced in three separate departments sequentially: Mixing, Encapsulating, and Packaging. The following information of...
-
A- Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 9,000 units. The ending work in process inventory is 100%...
-
For the month just ended, the following data were generated by Alonzo Corporation. Physical units Units in process, beg. 4,000 gallons Materials, chemicals (?complete) Materials, cans (0% complete)...
-
MidWest Amusements is in the process of reviewing 10 proposals for new rides at its theme parks in cities scattered throughout the American heartland. The companys only experienced safety engineer...
-
During the month of June, Danielle's Boutique had cash sales of R$265,000 and credit sales of R$153,700, both of which include the 6% sales tax that must be remitted to the government by July 15....
-
Use the first thirteen rules of inference to derive the conclusions of the following symbolized arguments: 1. (T.R) DP 2. (~P.R) G 3. (~TvN) DH IH
-
What are three main types of motor vehicle insurance that cover bodily injuries?
-
The vapor leaving the top of a distillation column goes to a condenser in which either total or partial condensation takes place. If a total condenser is used, a portion of the condensate is returned...
-
Assignment Question 17, P9-12 (similar to) > HW Score: 56.25%, 11.25 of 20 points Points: 0 of 1 (Related to Checkpoint 9.2) (Yield to maturity) Hoyden Co.'s bonds mature in 11 years and pay 12...
-
1. What is your assessment of the financial performance of Nelson Nurseries? 2. Do you agree with Christine Barton?s accounts-payable policy? 3. What explains the erosion of the cash balance? 4. What...
-
Explore and analyze the position of indigenous people as stakeholders. How does Corporate Social Responsibility play into this?
-
A pot at 42.9 C has been placed in a -17.1 C freezer. The pot's surface area is 0.145 m and its emissivity is 0.533. Find the pot's net rate of radiation P. P = W
-
Use the linear wave equation to determine the wave speed of a wave modeled with the wave function y(x, t) = (0.10 m)sin[(1.50 m-1)x + (5.00 s)]. (Use the following as necessary: x and t. ay(x, t)...
-
Show that the following grammar is ambiguous. S - Ab I aaB A > a I Aa B -> b -
-
Oriole, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,095.10 today and your required rate of return was 5.5 percent. (Round...
-
A solid sphere 20 cm in radius carries 19 C, distributed uniformly throughout its volume. LQ 4 Part A Find the electric field strength 10 cm from the sphere's center. Express your answer in...
-
Suppose you take a 9 year loan of $50,000 with an interest rate of 14% and annual payments starting at the end of year 1. What are the annual loan payments? Enter your response below. 10108.42...
-
What are three disadvantages of using the direct write-off method?
-
Explain why a lean organisation would refuse to implement an absorption costing system.
-
How can target measures be used to promote either short-term or long-term performance?
-
A community health clinic operates as a not-for-profit entity. Typical capital expenditure decisions involve acquiring equipment that will perform medical tests beyond those currently possible at the...
-
A sales invoice prepared by the seller is called a purchase invoice by the buyer. True/False
-
A purchase of merchandise for $300 with a trade discount of 10% would require a debit to Purchases of (a) $330. (c) $297. (b) $300. (d) $270.
-
A trade discount is a reduction from the list or catalog price offered to different classes of customers. True/False
Study smarter with the SolutionInn App