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skad [1K]
3 years ago
10

The Assembly Department of​ Intuitive, Inc., manufacturer of​computers, had​ 4,500 units of beginning inventory in​ September, a

nd​ 3,000 units were transferred to it by the Production Department. The Assembly Department completed​ 1,500 units during the month and transferred them to the Packaging Department. Calculate the total number of units accounted for by the Assembly Department if it had​ 6,000 units in ending inventory. The​weighted-average method is used.
Business
1 answer:
Pepsi [2]3 years ago
8 0

Answer:

Units accounted for: 7,500

Explanation:

We are going to follow physical units so the method W/a or FIFO is not relevant for this step:

Beginning and transferred in are the input, fro mwere the units come from:

beginning WIP              4,500

transferred in                3,000

Units to account for:   7,500

While, ending WIP and transferred-out are were the untis are now:

Ending WIP                  6,000

transferred-out             1,500

Units account for        7,500

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Explanation:

First and foremost, we need to understand that a direct labor spending variance of $990(unfavorable) means that the firm spent an additional $990 compared to what was expected.

Also, the spending variance is computed as the actual labor rate minus the standard labor rate multiplied by the actual labor hours worked

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