Answer:
A. 4.3 batches
B. 215 parts
C. 3 batches
D. 184 parts
Explanation:
Please find explanation attached
The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs 1. Transferred ou
t 14,100 units. Beginning work in process $0 2. Started 5,100 units that are 60% Materials 73,920 complete as to conversion Labor 30,180 costs and 100% complete as Manufacturing overhead 21,300 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs.
1 answer:
You might be interested in
Answer:
$84,000
Explanation:
Cost = $200,000
Residual value = $40,000
Expected hours = 20,000
Working hours (year 1) = 2,500 hours
Working hours (year 2) = 3,000 hours
Working hours (year 3) = 4,000 hours
Working hours (year 4) = 5,000 hours
Now,
Depreciation per hour =
Depreciation per hour =
Depreciation per hour =
Depreciation per hour = $8
Depreciation exper for each year can be calculated using the units-of-production method. Under this method, depreciation expense per hours is multiplied with the hours used during each year.
Depreciation schedule for the machine has been constructed and attached below:
