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3 years ago

Process Costing using the Weighted-Average Method

Business

1 answer:

Finger [1]3 years ago

6 0

Answer:

First we find the equivalent units. Then Cost Per Equivalent Units. We apply these costs to the units to find the total cost. Then we compare the given costs with the found costs to see the difference.

Explanation:

Equivalent Units

Particulars Units % of Completion Equivalent Units

Materials Conversion Materials Conversion

Units transfered 6050 100 1000 6050 6050

Ending WIP 450 40 30 180 135

Equivalent Units 6230 6185

Units Completed And Transferred

Particulars Units

Beginning WIP 300

Units started in production 6200

Total Units Available 6500

Less Ending WIP 450

Units Completed and Transferred 6050

Cost Per Equivalent Unit

Particulars Materials Conversion

Beginning WIP $10,500 $6,750

Costs added 332,150 407,645

Total Costs 342,650 414,395

Equivalent Units 6230 6185

Cost Per Equivalent Unit 342,650 / 6230 414,395/ 6185

=$ 55 =$ 67

Costs Assigned

Ending WIP $ 18945

Materials ( 180 * 55) = $ 9900

Conversion ( 135 * 67) = $ 9045

Units Completed And Transferred Out : $ 738100

Materials ( 6050 *55) = $ 332750

Conversion ( 6050 * 67) = $ 405350

Cost Reconciliation

Cost to be accounted for

Beginning WIP ( $10,500 + $6,750 )= $ 17250

Cost added ( 332,150+ 407,645)= $ 739795

Total Costs $ 757045

Ending WIP $ 18945

Units Completed And Transferred Out : $ 738100

Total Costs $ 757045

Which is the same.

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3 years ago

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LNS Corporation generated a minimum tax credit of $100,000 in 2017. LNS has a regular tax liability of $80,000 in 2018. How much

erik [133]

Answer:

$10,000

Explanation:

Calculation for How much of the 2017 minimum tax credit is refundable to LNS in 2018

Refundable minimum tax credit=($100,000-$80,000)*50%

Refundable minimum tax credit=$20,000*50%

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Therefore How much of the 2017 minimum tax credit is refundable to LNS in 2018 will be $10,000

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3 years ago

If a company has a required rate of return of 15%, should the following project be accepted based on these expected cash flows b

Citrus2011 [14]

Answer:

Yes

Explanation:

In order for deciding whether the company should forward or not, we have to find out the net present value which is shown below:

Year Cash flows Discount factor Present value

0 -274000 1 -274000

1 68000 0.8696 59130.43

2 73000 0.7561 55198.49

3 76500 0.6575 50299.99

4 78000 0.5718 44596.75

5 82500 0.4972 41017.08

6 77000 0.4323 33289.22

Total present value 283531.97

Net present value 9531.97

Since the net present value comes in positive so the project should be accpeted

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3 years ago

For a particular flight from Dulles to SF, USAir uses wide-body jets with a capacity of 430 passengers. It costs the airline $4,

guajiro [1.7K]

Answer:

$370.69

Explanation:

Given the following :

Capacity (n) = 430

Cost incurred by airline per flight = $4000 + $60 per passengers

If ticket price = T ; (430 - 0.58T) are expected to book.

Determine the ticket price, T, that will maximize the airline's profit.

Profit = Revenue earned - cost incurred

Revenue earned = capacity * price = nT

Cost incurred = $4000 + $60n

Profit = nT - (4000 + 60n)

If ticket price = T ; (430 - 0.58T) are expected to book. Then n = (430 - 0.58T)

Profit = (430 - 0.58T)T - ($4000 + 60(430 - 0.58T))

Profit = 430T - 0.58T^2 - ($4000 + 25800 - 34.8)

Profit = 430T - 0.58T^2 - 4000 - 25800 + 34.8

Profit (P) = - 0.58T^2 + 430T −29834.8

Taking the first derivative of P

P' = 2(-0.58T) + 430

P' = - 1.16T + 430

Hence solve for price (T) when P' = 0

0 = - 1.16T + 430

1.16T = 430

T = 430 / 1.16

T = 370.68965

Price = $370.69

6 0

3 years ago

Entry for Jobs Completed; Cost of Unfinished Jobs

frosja888 [35]

Answer:

a. Journal Entry to record the jobs completed:

Debit Finished Goods Inventory $178,710

Credit Work in Process $178,710

To record the jobs completed.

b. The cost of the unfinished jobs at August 31 is:

= $23,080

Explanation:

a) Data and Analysis:

Work in Process

Account Titles Debit Credit

Balance, August 1 $8,920

Direct materials 72,520

Direct labor 78,230

Factory overhead 41,120

Finished goods inventory $178,710

Balance (unfinished jobs) 23,080

Total $201,790 $201,790

Jobs finished during August are summarized as follows:

Job 210 $36,140

Job 216 22,090

Job 224 42,170

Job 230 78,310

Total $178,710

a. Journal Entry Analysis to record the jobs completed:

Finished Goods Inventory $178,710 Work in Process $178,710

b. The cost of the unfinished jobs at August 31 is:

= Total of work in process Minus Finished Goods

= $201,790 - $178,710

= $23,080

5 0

3 years ago