True or false? the internal revenue code forbids nonprofit hospitals to make a profit.

Exercise 5-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-Average Method [LO5-2, LO5-3, LO5-4]

S_A_V [24]

Answer:

1. Calculate the first production department's equivalent units of production for materials and conversion for May.

materials = 275,000 + 50,000 = 325,000
conversion = 275,000 + 12,500 = 287,500

2. Compute the first production department's cost per equivalent unit for materials and conversion for May.

materials = $169,000 / 325,000 = $0.52
conversion = $253,000 / 287,500 = $0.88

3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.

materials = 50,000 x $0.52 = $26,000
conversion = 12,500 x $0.88 = $11,000
total = $37,000

4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.

materials = 275,000 x $0.52 = $143,000
conversion = 275,000 x $0.88 = $242,000
total = $385,000

Explanation:

Beginning WIP 70,000 units

materials $56,100

conversion $16,400

Ending WIP 50,000 units

100% completed for materials (50,000 EU)

25% completed for conversion (12,500 EU)

units started 255,000

total units transferred out 275,000

materials cost added during the period = $112,900

conversion cost added during the period = $236,600

7 0

3 years ago

When a company expands by entering new business areas, it is called growth through __________?

garri49 [273]

When a company expands by entering a new business area, it is called growth through diversification.

Diversity is the means of being different, new, exciting.. something not like another. When a business enters something new, it's called diversification because it's not like what they've done before. With this comes risk but huge growth potential.

7 0

3 years ago

Select the correct answer. Which element is part of indirect compensation? A. basic pay B. bonus C. stock options D. subsidized

Oduvanchick [21]

A is the correct answer for me for u I don’t know

3 0

4 years ago

In its first month of operations, Wildhorse Co. made three purchases of merchandise in the following sequence: (1) 370 units at

Andreas93 [3]

Answer:

The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620

Explanation:

First determine the units sold

Units Sold = Total Purchases - Units in hand

= 1,410 units - 270 units

= 1,140

Note ; Wildhorse Co. uses a periodic inventory system. This means we calculate the cost at the end of the period.

FIFO

Means First in First Out

Cost of the ending inventory = 270 x $9.00 = $2,430

LIFO

Means Last in First Out

Cost of the ending inventory = 270 x $6.00 = $1,620

Conclusion

The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620

5 0

3 years ago

Jilk Inc.'s contribution margin ratio is 60% and its fixed monthly expenses are $48,000. Assuming that the fixed monthly expense

Kryger [21]

Answer:

The best estimate of the company's net operating income in a month is <u>$34,800</u>.

Explanation:

This can be calculated using the following steps:

Step 1: Calculation of contribution margin

This can be calculated using the formula for calculating the contribution margin ratio as follows:

Contribution margin ratio = Contribution margin / Sales ........... (1)

where,

Substituting the values in the question into equation (1) and solve for contribution margin, we have:

60% = Contribution margin / $138,000

Contribution margin = 60% * $138,000 = $82,800

Step 2: Estimation of the company's net operating income in a month

This can be calculated using the following formula:

Net operating income = Contribution margin - Fixed expenses ......... (2)

Substituting the $82,800 obtained in Step 1 for contribution margin and the fixed monthly expenses of $48,000 in the question into equation (2), we have:

Net operating income = $82,800 - $48,000 = $34,800

Conclusion

From Step 2 above, the best estimate of the company's net operating income in a month is therfore <u>$34,800</u>.

4 0

3 years ago