Manufacturing overhead was estimated to be $380,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $395,000, actual labor hours were 22,300. The predetermined overhead rate per direct labor hour would be:
Answer:
the predetermined overhead rate per direct labor hour would be $19
Explanation:
The computation of the predetermined overhead rate per direct labor is shown below:
Predetermined overhead rate per direct labor is
= (Estimated manufacturing overhead) ÷ (direct labor hour)
= ($380,000) ÷ ($20,000)
= $19
Hence, the predetermined overhead rate per direct labor hour would be $19
Jimmy's pizza bought a new pizza oven for $7,276. The useful life is estimated to be 12 years and the salvage value is $400. If jimmy uses straight line depreciation:
A. Calculate the annual depreciation
B. Determine the book value of the oven at the end of 8 years.
Answer:
see below
Explanation:
In straight-line depreciation, depreciation is a constant figure throughout the useful life of an asset.
The depreciation rate = 1/useful life x 100
For Jimmy's pizza depreciation rate
=1/12 x 100
=8.333%
The depreciable rate = Asset cost - salvage value
=$7,276 - $400
=$6,876
Annual depreciation = 8.333% x $6,876
=0.08333 x $6,876
=$573 per year
Book value after 8 years
=Asset value minus accumulated depreciation.
Accumulated depreciation = annual depreciation x number of year
Accumulated depreciation = $573 x 8
Accumulated depreciation= $4,584
Book value =$7,276 - $4,584
= $2,692
In the food service industry, recipes are invaluable because they provide a way for cooks, no matter who or where they are, to achieve consistency of _____ and ______. volume; scale
strain; tare
quality: yield
weight: gauge
Answer: quality: yield is correct
Explanation: Took the test
In the food service industry, recipes are invaluable because they provide a way for cooks, no matter who or where they are, to achieve consistency of quality and yield. Thus, option (c) is correct.
What is food?The term “food” refers to an edible and consumable material that provides the body with nutrition and vitamins to maintain itself. Plants, humans, animals, and birds all typically eat food. fruits, vegetables, legumes, dairy, and other nutrient-dense foods. The body need the food in order to function, thus it was consumed.
According to the food service sector, was the offered the information of the food as well as the grade of the cuisine. It instructs the cook on what ingredients to use, how to utilize them, and any nutrition facts that may be useful. A recipe's yield is the number of servings it will make.
Therefore, option (c) is correct.
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Are you personally liable for this bill, or is it only the corporation that is liable since you are a CEO and the incident happened during a business trip for the corporation
Complete Question:
Suppose you are the CEO of a corporation. After attending a business conference in Hawaii, you and some other CEOs you met at the conference decide to relax and unwind with a few drinks at the hotel bar. The hotel bar closes, so you and the other CEOs decide to go back to your room and continue the party. You proceed to raid the large whiskey collection in your minibar. Your memory becomes hazy at this point, but you wake up the next morning and find the hotel room is completely trashed. The hotel sends you a $50,000 bill for the damages. Are you personally liable for this bill, or is it only the corporation that is liable since you are a CEO and the incident happened during a business trip for the corporation?
Answer:
Based on the given scenario, the CEO is personally liable for the incident and the bill of $50,000 claimed as damages by the hotel.
Explanation:
The damages resulted from the CEO's indiscretion. When properly checked, the accident happened as a result of the personal decision by the CEO to relax and unwind with other CEOs and to extend their partying outside the hotel bar. This incident occurred after the main business for the business trip had been completed. It is also an incident that should not have happened if caution was not thrown to the wind by the CEO. Therefore, the CEO should personally bear the liability.
Select the correct answer.
Workers like authoritarian leaders best.
A. True
B. False
Answer:
A
Explanation:
What are examples of types of products that are currently being manufactured by joint ventures between the U.S., Canada, Mexico, and developing countries
Answer:
Uber Taxi
Star Bucks
Tata Global Beverages
Siemens and Nokia
Alibaba
Explanation:
Joint venture is the business in which there are two or more parties who shares the ownership. The business management may be mutually decided. There are many examples of Joint ventures in the world. Uber Taxi is one of the finest example of joint venture where Volvo vehicles shares the ownership. The joint venture reduces the investment cost for both the parties. The business can be quickly spread in the world by the efforts of two or more parties that form the joint venture.
The two common stock ratios are the price–earning (PE) ratio and the
ratio. The latter ratio is used to calculate the PE ratio by dividing the
of equity shares by it.
Answer:
The two common stock ratios are the price–earning (PE) ratio and the earnings per share (EPS) ratio. The latter ratio is used to calculate the PE ratio by dividing the price of equity shares by it.
Explanation:
The Price-earnings ratio measures investors' assessments of an entity's future earnings. It is determined by obtaining the share price of the company's stock and dividing it by the EPS. It is expressed in number of times of the EPS that investors are willing to pay for a share in the company's equity. The earnings per share (EPS) indicates the profit or income which a company generates for each share. It is determined by dividing a company's net profit by the number of outstanding common shares. It is widely used to estimate corporate value.
Answer:market price
Explanation:
On January 1, 2024, Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1, 2034. The bonds were issued for $3,385 to yield 9%. Bear Cove uses the effective-interest method of amortizing the bond premium. Interest is payable annually on December 31. The 12/31/24 bond carrying value is approximately:
Answer: The bond carrying value is approximately $3,332
Explanation:
Given that
Year Int. Expense(A) Interest pmt(B) Pre. amortization Bonds carrying val
9% of previous 11% of face B-A Issue price - prem
carrying value value Amort
0 0 0 0 $3,385
1 (0.09×3385) (0.11×3000) (330 - 304.65) (3,385 - 25.35 )
$304.65 $330.00 $25.35 $3,359.65
2 (0.09×3,359.65) (0.11×3000) (330 - 302.37) (3,359.65-27.63)
$302.37 $330.00 $27.63 $3,332.02
The bond carrying value is approximately $3,332
compare, contrast, and discuss the connections between the ever-changing global business environment and the changes in the dynamic and diverse workplace, including the challenges of global economics and social responsibility.
Explanation:
Globalization and new technologies have impacted social and economic relations around the world. The distances between countries have become shorter as a result of internet communication, in addition to the transport and flow of information, which occurs instantly in everyone today.
This new scenario enabled the expansion of businesses in search of profitability and cost reduction, companies opened new branches in different countries and diversified their work environment, making it multicultural, with workers of different cultures and values. This environment allows a very positive exchange for organizations, which achieve innovation and creativity through people with different worldviews.
Globalization has also impacted the way companies are perceived, they are no longer just profitable entities to become promoters of social and environmental responsibility, due to the way that society changes its consumption and interaction paradigms and encourages companies to adapt to continue meeting society's demand. The organizational image strengthened through social programs and reduction of environmental impact provides long-term competitive and strategic advantages for companies, such as attracting investors, greater value for stakeholders, continuous improvement, etc.
Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of Kara’s buildings has a book value of $400,000 and a tax basis of $300,000. There were no other temporary differences and no permanent differences. Taxable income was $4 million and Kara’s tax rate is 25%. What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $20,000 the previous year, prepare the appropriate journal entry to record income taxes this year.
Answer:
A. Credit $5,000
B. Dr Income tax expense $1,005,000
Cr Income tax pay$1,000,000
Cr Deferred tax liability $5,000
Explanation:
Calculation for What is the deferred tax liability to be reported in the balance sheet
Deferred tax liability=[ (400,000-300,000)*.25]-20,000
Deferred tax liability=($100,000*.25)-$20,000
Deferred tax liability=$25,000-$20,000
Deferred tax liability=$5,000 Credit
Therefore the deferred tax liability to be reported in the balance sheet will be $5,000 Credit
B. Preparation of the appropriate journal entry to record income taxes this year.
Dr Income tax expense $1,005,000
Cr Income tax pay$1,000,000
(4million *.25)
Cr Deferred tax liability $5,000
To compare the different inventory valuation methods, consider the following fictional company preparing a semi-annual balance sheet. Each month 100 units of a raw material is purchased, but the price goes up each period. At the end of six months, the company takes a physical count and sees that 300 units are left and 300 units have been consumed.
Units Cost per Unit Cost
January 100 $10 $1,000
February 100 $11 $1,100
March 100 $12 $1,200
April 100 $13 $1,300
May 100 $14 $1,400
June 100 $15 $1,500
In total, 600 units have been purchased at an average price of___________ for a total cost of_________.
Answer:
In total, 600 units have been purchased at an average price of $12.50 for a total cost of $7,500.
Explanation:
total cost of the 600 units = $1,000 + $1,100 + $1,200 + $1,300 + $1,400 + $1,500 = $7,500
average price per chair = $7,500 / 600 = $12.50
this inventory valuation method is called the weighted average method, and it assigns the same cost regardless of when the units were purchased.
If a household's income rises by 30%, its budget constraint will A) shift out parallel to the old one. B) pivot at the Y-intercept. C) shift in parallel to the old one. D) be unaffected
Answer:
A
Explanation:
A budget constraint is a graph that shows all the combination of goods a consumer can consume given current prices and income of the consumer.
If income increases, the budget constraint will shift out parallel to the old
If income decreases, budget constraint will shift in parallel to the old one.
Read the following scenario and determine if the situation requires a direct or indirect message.You have just been offered a promotion that your friend and coworker, Sharon, has been hoping for. Sharon knows that you had a scheduled meeting with your boss today and sends you an e-mail asking how your meeting went. You know Sharon will be upset when she hears the news of your promotion; however, she is a good friend, and you need to be honest and tell her in your response e-mail.
Answer: Indirect message
Explanation:
The indirect message should be used in this case. We should note that this is typically used when one wants to pass a bad or sensitive news across to someone. In an indirect strategy, we should note that the main reason for the communication is usually after an explanation had been done first.
Therefore, in this case the indirect message should be used in communicating with Sarah. The message may hurt Sarah therefore it should be communicated in an indirect manner.
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
Sales $ 1,350,000
Selling price per pair of skis $ 450
Variable selling expense per pair of skis $ 46
Variable administrative expense per pair of skis $ 19
Total fixed selling expense $ 140,000
Total fixed administrative expense $ 115,000
Beginning merchandise inventory $ 75,000
Ending merchandise inventory $ 120,000
Merchandise purchases $ 315,000
1. Prepare a traditional income statement for the quarter ended March 31.
2. Prepare a contribution format income statement for the quarter ended March 31.
3. What was the contribution margin per unit?
(1) The traditional format income statement for Alpine House, Inc for the quarter ended March 31 is shown below:ParticularsAmount ($)Sales1,350,000Less: Cost of Goods Sold:Beginning merchandise inventory 75,000 Add: Merchandise purchases 315,000 Goods available for sale390,000Less: Ending merchandise inventory 120,000 Cost of goods sold270,000Gross Profit1,080,000Less:
Operating Expenses:Variable selling expense46* units soldVariable administrative expense19* units soldTotal Variable Expenses65 Fixed Selling Expenses 140,000Fixed Administrative Expenses115,000Total Operating Expenses255,000Net Operating Income 825,000*Calculation of variable expenses:Variable selling expense per unit= $46Variable administrative expense per unit= $19Total variable expense per unit= $65($46 + $19)
(2) The contribution format income statement for the quarter ended March 31 is shown below:ParticularsAmount ($)Sales1,350,000Less: Variable Expenses:Variable selling expense (46*3,000 units)138,000Variable administrative expense (19*3,000 units)57,000
Total Variable Expenses195,000Contribution Margin1,155,000Less: Fixed Expenses: Fixed selling expenses140,000 Fixed administrative expenses115,000Total Fixed Expenses 255,000Net Operating Income900,000*Calculation of units sold: 3,000 units were sold (Sales/ Selling price per pair of skis = 1,350,000/450 = 3,000 units)
(3) The contribution margin per unit is $195. ($450 - $255) = $195.Contribution margin per unit is calculated as follows:Contribution margin per unit = Selling price per unit - Total variable expenses per unitSelling price per unit = $450Variable expenses per unit = $65 ($46 + $19)Contribution margin per unit = $450 - $65 = $385
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Identify a popular online magazine that also has an offline subscription or newsstand edition. What advantages (and disadvantages) does the online edition have when compared to the offline physical edition
Explanation:
One example of a popular magazine is the New York Times magazine which has an offline subscription and a newsstand edition.
Advantages of online edition:
broader audience reach: this means that the magazine could be accessed on a global scale since it could be easily downloaded online from anywhere in the world.lower printing/distribution cost: rather than spending more money printing physical copies of the magazine, the publishers simply place or send digital copies online for download by their subscribers.Disadvantages of online edition:
increased risk of copyright infringement (plagiarism): since copies are made in digital format, it is easier for others to reproduce copies of the magazine without the express permission of the publishers.Unimart Precision Manufacturing:
Beginning inventory Merchandise $275,000
Finished goods $450,000
Cost of purchases $500,000
Cost of goods manufactured $900,000
Ending inventory Merchandise $115,000
Finished goods $375,000
Compute cost of goods sold for each of these two companies for the year ended December 31, 2015.
a. Merchandising Business:
b. Manufacturing Business:
Answer:
A. $660,000
B. $975,000
Explanation:
We know that ;
Cost of goods sold = Opening inventory + Purchases - Ending inventory
For Merchandising Business, it would be
= $275,000 + $500,000 - $115,000
= $660,000
For Manufacturing Business, it would be;
= $450,000 + $900,000 - $375,000
= $975,000
Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: The estimated selling and administrative expense for February is closest to:
Answer:
$107,200
Explanation:
Calculation for the estimated selling and administrative expense for February
Budgeted unit sales 12,000
× Variable selling and administrative expense per unit $3.10 per unit
=Total variable selling and administrative expense $37,200
(12,000×$3.10 per unit)
Add Fixed selling and administrative expenses $70,000 per month
Estimated selling and administrative expense $107,200
($70,000+$37,200)
Therefore The estimated selling and administrative expense for February is closest to:$107,200
The owner of the business where you work has asked for your advice on restructuring the organization. You know that customer service is the cornerstone of the company. What do you recommend
Answer:
Flatter structures are appropriate for organizations that empower employees to solve customer problems.
Explanation:
These are the options for the question below;
✓A taller structure will improve the speed at which decisions are implemented.
✓Flatter structures are appropriate for organizations that empower employees to solve customer problems.
✓With a tall structure, supervisors can avoid hearing about customer complaints.
✓A flatter structure will further centralize decision making.
From the question, we are informed about an instance, where The owner of the business where i work has asked for your advice on restructuring the organization. Since I know that customer service is the cornerstone of the company. In this case I will recommend Flatter structures which is the best structure for organization that give empowerment to their employees in order to be able to solve problems associated with customers.
Flatter structure in an organization can be regarded as a structure that posses limited level of management or no level existing between the staff employee and the management of the organization. Flatter structure gives little supervision to the employees though it brings in their involvement when it comes to decision making
.
On January 1, Cullumber Corporation purchased a 25% equity in Helbert Corporation for $182,000. At December 31, Helbert declared and paid a $47,900 cash dividend and reported net income of $236,500.
Required:
Journalize the transactions.
Answer:
January 1
Debit : Investment in Helbert Corporation $182,000
Credit : Cash $182,000
Being Investment in Associate
Elimination Journal:
Debit : Investment in Associate ($236,500 x 25%) $59,125
Credit : Share of Profits ($236,500 x 25%) $59,125
December 31
Debit : Cash ($47,900 x 25%) $11,975
Credit : Dividend Income ($47,900 x 25%) $11,975
Being Dividend Income Received from Associate
Elimination Journal:
Debit : Dividend Income $11,975
Credit : Investment in Associate $11,975
Explanation:
Cullumber Corporation 25% equity in Helbert Corporation represents an investment in Associate. This is because, Cullumber Corporation has significant control of Helbert Corporation ( more than 20% voting rights).
Note : I have also included consolidation elimination journals !
briefly explain what you consider an entrepreneur to be and describe the three most important attributes you need to develop to become an entrepreneur. Give reasons for your choices.
Answer:
An entrepreneur is a person who finds an economic opportunity in the market, and exploits it for his own benefit and the benefit of his employees and constomers by setting up a firm.
Explanation:
Three characteristic of an entrepreneur:
Opportunity seeking: entrepreneurs "scan" the market, seeking for market niches that have not been exploited.
Work-ethic: entrepreneurship is a difficult task, especially during the first years of the company. It demands very long work hours, and the entrepreneur must be willing to do that in order to be successful.
Risk-taking: entrepreneurs should evaluate risk when taking decisions, but they should not be the most risk-averse indidivuals. They have to take risks in certain situations because otherwise, they would not be able to become entrepreneurs at all.
Which of these is the best reason for Nina to monitor her bank account statements online or on her cell phone app?
Answer: D:to know how much money she has for budgeting
Explanation:
The options include:
A:to organize when to pay to bills
B:to determine the exact date she can retire
C:to ensure she's paying her fair share in taxes
D:to know how much money she has for budgeting.
The best reason for Nina to monitor her bank account statements online or on her cell phone app is to know how much money she has for budgeting.
Monitoring ones account online will enable one to know the amount that one has in the account and this can ensure that one makes adequate plans on how to spend the money through budgeting.
Answer:
D: To know how much money she has for budgeting
Explanation:
It just it the answer.
is committed to training new employees. assuming the company uses the incremental learning curve method, what is the total labor cost for 4 jobs
Answer:
$19,500
Explanation:
The complete question is: "Each time the Company hires a new employee, it must wait for some period of time before the employee can meet production standards. New employees are paid $150 per hour. Management is unsure of the learning curve in its operation, but it knows the first job by a new employee takes 40 hours and the second and third job take 32 and 28 hours respectively. Assume all jobs to be equal in size. Assuming that the company uses the incremental learning curve method, the total labor cost for 4 units will be closest to?"
The first job takes 40 hours
The next job takes 32 hours.
So, the total hours for first 2 jobs = 40 hours+ 32 hours = 72 hours
Average hours for first 2 jobs = 72 hours / 2 = 36 hours. Learning curve percentage = 36 hours / 40 hours = 0.9 = 90%
So, the average for 4 jobs (double of 2 jobs) shall be 36*90% = 32.40 hours. Hence, Total hours for 4 jobs = 32.40 hours * 4 = 129.60 hours ≅ 130 hours. So, the total labor cost for 4 jobs = 130 hours * $150 per hours = $19,500
Which of the following would cause the supply curve for t-shirts to shift left?
A: The price of cotton increases by 20%.
B: Laborers at a t-shirt factory agree to reduced wages.
C: T-Shirts become more fashionable amongst teenagers.
D: A new printing machine screen prints t-shirts at an increased rate.
Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and a market value of $25,000. Ignoring taxes, what is the opportunity cost of using this machine
Answer:
$25,000
Explanation:
Opportunity costs is based on market value, not historical costs or original costs. So, the opportunity cost of using this machine is $25,000
For insight into a government agency's understanding of the laws it administers, one should consult:
Answer:
The agency's interpretive rules.
Explanation:
An interpretive rule can be defined as a document issued by an agency so as to help expound or clarify existing administrative laws, regulations and statutes in the public domain.
Basically, an interpretive rule is not required to meet the minimum requirements or criteria specified by the Administrative Procedure Act (APA). Also, an interpretive rule is not considered as a force of law because it is not binding on the general public.
Hence, for insight into a government agency's understanding of the laws it administers, one should consult the agency's interpretive rules for an explanation on the law and regulations it promulgated,
the decision-makers that experience scarcity.
Answer:
Governments, companies, and individuals
Explanation:
Answer:
goverments companies induvuduaks
Explanation:
5. Which commandment of computer ethics is violated on doing the following:
a) Hacking b) Software piracy c) Computer Virus
the answer is by hacking
In 2009, Democratic President Barack Obama called on Congress to pass comprehensive health care reform. The goal of the legislation was to expand access to health insurance to the more than 40 million uninsured Americans and lower the overall cost of health care.
The Democratic-controlled House of Representatives considered many different reforms, including a government-sponsored health plan with a public option and a requirement that all individuals purchase health care known as an individual mandate. Republicans opposed both ideas and put forth their own plans which included tax incentives and methods to lower costs when seeing a doctor. In the end, a bill called the Affordable Care Act (ACA) was passed, which included an individual mandate but not a public option. The final vote in the House was 220-215. Only one Republican supported the bill, while 39 Democrats voted against it.
Republicans immediately began campaigning on a platform of repealing the ACA. After regaining control of the House of Representatives in the 2010 elections, the Republicans passed over 60 bills repealing the ACA. Each time, the legislation stalled in the Democratic-controlled Senate. When Republicans became the majority in both chambers following the 2014 elections, they finally passed a repeal of the Affordable Care Act. That legislation was vetoed by President Obama.
After reading the scenario, please respond to A, B, and C below.
a. Referencing the scenario, describe the party control of government when Congress passed legislation in 2014 to repeal the ACA, and explain how that party control could have affected the attempt to repeal the ACA in 2014.
b. Referencing the scenario, explain why a Republican representative following the delegate model of representation might have cast a vote in favor of the ACA bill in 2009 when it was originally passed.
c. Describe how the judicial branch could be used to implement the Republican’s legislative goals despite President Obama’s veto. Explain how this use of the judicial branch might ultimately affect the success of the Affordable Care Act.
Answer:
a. The party control of government when Congress passed legislation in 2014 to repeal the ACA was when Republicans gained majority seats in both chambers of Congress. This Republican control of Congress was the catalyst for the repeal of the ACA in 2014.
b. The Republican representative who cast a vote in favor of the ACA bill in 2009 followed strictly his constituency mandate.
c. When President Obama vetoed the ACA repeal, the Republicans could proceed to court to try to use the judicial branch of government to implement their legislative goals by requesting for constitutional interpretation of the repealed bill.
If this had happened, it would have seriously hampered the implementation and success of the Affordable Care Act for partisan reasons.
Explanation:
a) Congress is the legislative arm of government that makes the law. The executive implements the law. The judiciary is in charge of the interpretation and application the law to real situations. But when the President vetoes a bill, Congress can override the veto by ensuring that 2/3 of both chambers pass the law. Alternatively, Congress can ask for a judicial interpretation.
Congress is termed as the legislative party that focuses on the implementation of the law and framing of the laws for the benefit of the general public and the citizens. The judiciary in congress is held as in charge of the interpretation and the formation of laws.
The answers to the above questions are:
a. The party of the government was the republicans when congress passed the legislation in the year 2014 for the laying of the appeal of ACA. This Republican control of Congress was the catalyst for the repeal of the ACA in 2014.
b. The Republican representative who cast a vote in favor of the ACA bill in 2009 followed strictly his constituency mandate.
c. When President Obama voted for the ACA repeal, the Republicans proceeded to court to use the judicial branch of government for the implementation of the legislative goals in the request of constitutional interpretation of the appealed bill.
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If the consumer gets 40 utils from buying four DVDs, 45 utils from buying five DVDs and 48 utils from buying six DVDs, then the consumer's marginal utility is: Group of answer choices decreasing. constant. increasing at an increasing rate. increasing.
Answer:
decreasing
Explanation:
Since in the question it is mentioned that of the consumer buy four DVds and he gets 40 utils and if he buy more he get more utils and so on so the utility of the consumer would be decreased in the case when he consumes more
Therefore as per the given situation the first option is correct
The same is considered and relevant too
Timing Technology, Inc. manufactures timing devices. During 20x1, 1,500,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 320,000 units in work in process. These units were 49 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 450,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:
Units Materials Labor
Work in process, January 1, 20x1 310,000 $310,000 $315,400
(84% complete as to conversion)
Units started in production 1,510,000
Direct-material costs $2,966,000
Direct-labor costs $2,998,200
Required:
Complete the following schedule as of December 31, 20x1, to compute the cost of work-in-process inventory.
Physical Units
Total units to account for 0
Total units to account for 0
Answer:
The cost of work-in-process inventory as of December 31, 20x1 is:
= $368,998.40
Physical units:
For materials = 320,000 units
For conversion = 156,800 units
Explanation:
a) Data and Calculations:
Units Materials Labor
Work in process, January 1, 20x1 310,000 $310,000 $315,400
(84% complete as to conversion)
Units started in production 1,510,000 1,510,000 1,510,000
Direct-material costs $2,966,000
Direct-labor costs $2,998,200
Total costs $3,276,000 $3,313,600
Units started in production 1,510,000 1,510,000 1,510,000
Work in process, December 31, 20x1 320,000 320,000 156,800
Total equivalent units 1,830,000 1,666,800
Costs per equivalent unit $1.79 $1.988
Cost of Ending WIP = $ (320,000 *$1.79 + 156,800*$1.988)
= $57,280 for materials + $311,718.40 for materials
= $368,998.40
b) The weighted average method was used to calculate the equivalent units. With this method, the beginning units of work-in-process are not part of the calculation (only the units started and completed and the ending work-in-process are). However, the costs of the beginning work-in-process form part of the calculation together with the cost of units started and completed during the current period.