Sweet Corporation produces syrup which it sells to candy factories. On June 1 it started production of
Question:
Sweet Corporation produces syrup which it sells to candy factories. On June 1 it started production of 10,000 gallons of syrup and completed production for 8,000 gallons. The costs of the resources used by Sweet consist of the following: Materials $85,000 and conversion $127,600. It is estimated that the work in process is still 60% incomplete although materials have been all applied at the start of the process.
Required:
a) Compute for the cost of syrup completed and the cost of the syrup still in process at the end of June. All syrup produced are transferred to wholesalers at a price of $35.
b) Give the GPR rate.
5. PROCESS COST SYSTEM UNEVEN APPLICATION OF MATERIALS To continue with no 4. Assume Sweet Corporation repacks the syrup into 1-liter cartoons before it sells to candy factories. During the month of June it received 8,000 gallons of syrup and completed production for 6,000 gallons. The costs of the resources used by Sweet consist of the following: Materials $25,200 and conversion $49,920. It is estimated that the work in process is 20% complete. Materials are applied at the end of the processing.
Required:
Compute for the cost of syrup completed and the cost of the syrup still in process at the end of June. If a gallon is equal to approximately 4 liters and predetermined selling price per liter is $12, will a GPR of 30% be achievable?
Expert Answer:
a To compute the cost of syrup completed and the cost of the syrup still in process at the end of June well follow these steps 1 Equivalent Units of P... View the full answer
