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Oksi-84 [34.3K]
3 years ago
12

Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in it

s Painting Department consisted of 2,700 units that were 60% complete with respect to materials and 40% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $9,500. During the period, 8,700 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $4.70 for material and $5.70 for conversion costs. The cost of units transferred out during the month was:
Business
1 answer:
Marina86 [1]3 years ago
7 0

Answer:

The cost of units transferred out during the month was:$ 99980

Explanation:

Mundes Corporation

Current Costs Added

Units Transferred  Costs $ 90480

Materials =8700 * $ 4.7= $ 40890

Conversion= 8700* $5.70= $ 49590

Costs from Preceding Department (WIP beginning Inventory)= $ 9500

Total Costs= Costs Added + Costs from Preceding Department

                  = $ 90480+ $ 9500= $ 99980

The Costs of units transferred out is $ 99980

The current costs are added to the preceding costs to get the total costs of the units transferred out.

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5 0
4 years ago
Select the incorrect statement concerning the application of the controllability concept to responsibility accounting.
motikmotik

Answer:

Each manager should be evaluated on the costs but not the revenues that are under his or her control.

Explanation:

Controllability refers to the amount of influence that a manager has over costs or revenues. In responsibility accounting, only those elements are identified which are controllable. A person is given the responsibility for managing such kind of elements.

A person is given an authority to control the costs so that they are able to keep up their performance.

However, according to the controllability concept to responsibility accounting,

each manager should also be evaluated on the revenues that are under his or her control.

5 0
4 years ago
Exercise 12-7 cash flows from investing activities lo p3
Oksi-84 [34.3K]

Cash flow from investing activities are as follows:

Sale of Equipment $51300

Purchase of Truck ($89000)

Sale of Land $198000

Sale of Long Term Investments $60800

Net Cash Flow from Investing Activities $221100

Calculation of Receipts from sale of equipment are as below:

Book Value of Equipment 65300

Less Loss on Sale 14000

Proceeds from sale 51300

We shall ignore original coat of the asset to calculate the above. Also only cash flows shall be considered to find the cash flow from investing activities.

5 0
3 years ago
A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $50
Artyom0805 [142]

Answer:

a. $(8000)

b. Company should choose alternative 1 and make bottles.

Explanation:

Particulars               Make Bottles            Buy Bottles  Differential

                                Alternative 1             Alternative 2

Purchase Price                  0                       $37                               $(37)

Freight Charges                 0                       $4                                $(4)

Variable cost                    $33                                                          $33

Fixed Cost                        $17                     $17                                  0

Cost per unit                    $50                    $58                              $(8)

Income / (Loss)                 $50,000            $58,000                      $(8,000)

b. The company should choose alternative 1 and make bottles. The buying of bottles will cost company loss of $8,000.

7 0
4 years ago
A NASDAQ security is bid at $42 and offered at $42.25. An over-the-counter trader effects a trade at $42.25 and charges a commis
ella [17]
$42.25
- trade prices that are shown on the tape DO NOT include commission.
4 0
3 years ago
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