Limited Labrador Corporation (LLC for short) is an emerging company that manufactures and sells peanut butter treats for dogs. The treats include two ingredients: peanut butter, and added nutrient powder. The ratio of Peanut Butter to nutrient powder is 2:1. The treats are packaged in 1.5 oz single-serve cups. Jen is the chef of LLC and her sole role is to make the treats, which she does in a commercial kitchen that LLC rents for a contracted 25 days a year. That rent includes the utilities and use of the food processor and packaging equipment. The kitchen facility will also store any packaged treats and ingredients for free.

LLC did its first production run in 2019, and a second in 2020. At the end of the run in 2020, Jen got a bunch of Accounting students to close her books. The ending balance at the end of 2020 was as follows:

Item	Percent Completed
Peanut Butter	60%
Nutrient Powder	45%
1.5 Oz Cups (with lids)	100%
Direct Labor	20%
Overhead (allocated on DL hrs)	20%
Treats in Process	1,000 units

Curious about how well the students did, Jen went to inspect the Work In Process stores and found an extra package of in-process peanut butter that the students had overlooked, and thus was not factored into their ending balance calculations.

Question 1. What would find this extra peanut butter does to the percentage completion for the Overhead account? Include work &/or explanation with an answer.
A) Increase the % completion of Overhead
B) Decrease the % completion of Overhead
C) No change in the % completion of Overhead

Question 2. What was the percentage completion of the units LLC sold in 2020?

Answer rating: 100% (QA)

Answer a b Since the direct materials used for treats are Peanut butter Nutrient powder In the ratio ... View the full answer