1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sasho [114]
3 years ago
6

A department had 65 units which were 20% complete in beginning Goods in Process Inventory. During the current period, 77 units w

ere transferred out. Ending Goods in Process Inventory was 30 units which were 20% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?A. 83B. 70C. 100D. 77E. 107
Business
1 answer:
Rina8888 [55]3 years ago
4 0

Answer:

The correct answer is C. 100

Explanation:

Data

Units in opening Work-In-Progress (WIP) 65

Units added ?

Units transferred out 77

Units in closing WIP 30

Units added=Units transferred out+Units in closing WIP-Units in opening Work-In-Progress (WIP)=77+30-65=42

Equivalent Units in production

Beginning WIP (% to complete) +Started and completed+Ending WIP

Beginning WIP              52 (65 x 80% )( 20% complete at the previous period, 80% in this period)

Started and completed 42

Ending WIP                     6 (30 x 20%) (20% complete in this period)

Total  =52+42+ 6= 100

You might be interested in
The balance of the revenue account is transferred to the
miv72 [106K]
Credit side of a the balance of revenue account is transferred
6 0
2 years ago
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all produc
Pavlova-9 [17]

Answer:

<u><em>Part a </em></u>

<u>Belmain Co.</u>

<u>Estimated Income statement for the year ended 2017.</u>

Sales ($240 x 12,000)                                                               $2,880,000

<u>Less Variable Costs :</u>

Direct Materials ($50.00 x 12,000)                                           ($600,000)

Direct Labor ($30.00 x 12,000)                                                 ($360,000)

Factory Overheads ($6.00 x 12,000)                                          ($72,000)

Sales Salaries and Commissions ( $4.00 x 12,000)                  ($48,000)

Miscellaneous selling expenses ( $1.00 x 12,000)                     ($12,000)

Supplies ($4.00 x 12,000)                                                           ($48,000)

Miscellaneous administrative expenses ($1.00 x 12,000)         ($12,000)

Contribution                                                                               $1,728,000

<u>Less Fixed Expenses :</u>

Factory overhead                                                                     ($350,000)

Sales salaries and commissions                                             ($340,000)

Advertising                                                                                 ($116,000)

Travel                                                                                            ($4,000)

Miscellaneous selling expense                                                   ($2,300)

Office and officers’ salaries                                                    ($325,000)

Supplies                                                                                        ($6,000)

Miscellaneous administrative expense                                      ($8,700)

Net Income ( Loss)                                                                     $576,000

<u><em>Part b</em></u>

0.6 or 60 %

<u><em>Part c</em></u>

Break-even sales (units) = 8,000

Break-even sales (dollars) = $1,920,000

<u><em>Part d</em></u>

<em>See attachment </em>

<u><em>Part e</em></u>

Margin of safety in dollars  =    $960,000

Margin of safety in percentage  =  33.3 %

<em><u>Part f</u></em>

Operating Leverage = 3.00

Explanation:

<u>Income Statement :</u>

<em>Sales - Expenses = Income</em>

Note : I have separated Variable and Fixed Expenses

<u>Contribution Margin ratio :</u>

<em>Contribution Margin ratio = Contribution ÷ Sales</em>

                                          =  $1,728,000  ÷  $2,880,000

                                          = 0.6 or 60 %

<u>Break-even sales ( units and dollars) :</u>

<em>Break-even sales (units) = Fixed Costs ÷ Contribution per unit</em>

                                        = $1,152,000 ÷ $144.00

                                        = 8,000

<em>Break-even sales (dollars) = Fixed Costs ÷ Contribution margin ratio</em>

                                            = $1,152,000 ÷ 0.60

                                            = $1,920,000

<u>Margin of safety in dollars and as a percentage of sales :</u>

<u />

<em>Margin of safety in dollars  = Expected Sales (dollars) - Break-even sales (dollars)</em>

                                             =  $2,880,000 - $1,920,000

                                             =   $960,000

<em>Margin of safety in %       = (Expected Sales  - Break-even sales ) ÷ Expected Sales</em>

                                             = $960,000 ÷ $2,880,000

                                             = 33.3 %

<u>Operating leverage</u>

<em>Operating Leverage = Contribution ÷ Earnings Before Interest and Tax</em>

                                  =  $1,728,000 ÷ $576,000

                                  = 3.00

3 0
2 years ago
The journal entry for the purchase of inventory on account using the perpetual inventory system is:.
Solnce55 [7]

The journal entry for the inventory purchased will be to record the sale and another one to record the cost of the sale.

<h3>What is a journal entry?</h3>

It should be noted that a journal entry is used to record the financial activities of a company.

In this case, the journal entry for the purchase of inventory on account using the perpetual inventory system is to record the sale and another one to record the cost of the good.

Learn more about inventory on:

brainly.com/question/24868116

7 0
2 years ago
Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows:
GaryK [48]

Answer:

See answer below

Explanation:

1. Degree of operating leverage

Selling price $126,000

Variable cost $50,400

Contribution margin $75,600

Fixed cost $23,000

Net operating income $52,600

Degree of operating leverage = Contribution margin / operating income = $75,600 / $52,600

= 1.44

8 0
3 years ago
1. Which of the following accurately explains why scarcity forces individuals and society to incur opportunity costs? A. Because
lozanna [386]

Answer:

explanation of opportunity cost:

A. Because of scarcity, people must make choices, and each choice incurs a cost

exampes of opportunity cost:

A. The money spent on a movie ticket cannot buy a Blu-ray player

C. The time spent preparing for a test cannot be spent playing computer games

Explanation:

The opportunity cost refers to the return or ouput of the resource used in the best alternative decision.

That means, the wages we get fro ma certain job most be compared with the wages we could do in another to really check if we are making a gain or not with our job.

Same applies for capital and other factors.

4 0
3 years ago
Other questions:
  • Suppose that Jane enjoys Diet Coke so much that she consumes one can every day. Although she enjoys gourmet cheese, she consumes
    7·1 answer
  • Which of the following describes the sequence of all process activities and tasks necessary to create and deliver a desired outp
    8·1 answer
  • Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,0
    11·1 answer
  • An investment of cash by stockholders into the business will
    9·1 answer
  • Which statement is correct? a. Producers are "Kings" in a market economy because they determine what is produced. b. Freedom of
    9·1 answer
  • You are considering a project in Norway with an initial cost of NKr135,000. The project is expected to return a one-time payment
    7·1 answer
  • Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a pr
    9·1 answer
  • New parents express concern that, because of the mother’s emergency cesarean birth under general anesthesia, they did not have t
    6·1 answer
  • Overbooking is a common practice in the hospitality industry. What are the pros and cons of overbooking? Is overbooking ethical?
    14·1 answer
  • Identify the type of advertising based on the given scenario.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!