Answer:
$38,675
Explanation:
sales price per pillow $97.50
total production 2,000 units
total sales 1,750 units
costs:
variable costs $22.10 per unit
fixed manufacturing $13.00 per unit
fixed administrative expenses $19.50 per unit
variable costing assigns only variable costs to inventory and COGS, so the COGS using variable costing = 1,750 units x $22.10 = $38,675
under variable costing, all fixed costs are period costs (fixed manufacturing and fixed administrative).
Answer:
inventory value=$ 377,000.00
Explanation:
In applying the rule of the lower cost of cost or net realizable value,we compare NRV(selling price minus cost to sell) with the replacement cost(current price), where the lower of the two is then compared against the original cost of the inventory item as done in the attached.
Value of inventory=$120,000+$126,000+$90,000+$41,000=$377,000.00
Answer:
- Materials - 100,400
- Conversion - 95,600
Explanation:
Equivalent Units = Units Completed and Transferred out + Ending Work in Progress.
Materials Equivalent Units
Ending Work in Progress = 90% * 16,000
= 14,400 units
Equivalent Units = 86,000 + 14,400
= 100,400 units
Conversion Equivalent Units
Ending Work in Progress = 60% * 16,000
= 9,600 units
Equivalent Units = 86,000 + 9,600
= 95,600 units
Answer:
Two activities scheduled to be carried out in parallel and using the same scarce resource are independent.
Explanation:
An Israeli physicist named, Eliyahu M. Goldratt developed the Critical Chain Project Management (CCPM) and introduced it in his book "Critical Chain" in 1997.
The CCPM is a project management methodology used by managers to better manage a project. The CCPM ensures that the project plan is feasible and immune from any uncertainty or statistical fluctuations.
In the CCPM activity network, there are no milestones and all non-critical activities are performed as late as possible.
CCPM adopts the use of drum buffers, so as to ensure extra safety is applied to a project immediately before using constrained resource.
According to Goldratt, two activities scheduled to be carried out in parallel and using the same scarce resource are independent.