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ArbitrLikvidat [17]
2 years ago
6

At the beginning of the month, the Forming Department of Martin Manufacturing had 26,000 units in inventory, 30% complete as to

materials, and 15% complete as to conversion. During the month the department started 76,000 units and transferred 86,000 units to the next manufacturing department. At the end of the month, the department had 16,000 units in inventory, 90% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.
Business
1 answer:
miskamm [114]2 years ago
4 0

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

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Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should tak
torisob [31]

Answer:

Results are below.

Explanation:

Giving the following information:

Estimated direct labor hours= 135,000

Estimated varaible overhead= $337,500

Estimated fixed overhead= $540,000

<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

<u>Variable:</u>

Predetermined manufacturing overhead rate= 337,500/135,000= $2.5 per direct labor hour

<u>Fixed:</u>

Predetermined manufacturing overhead rate= 540,000/135,000= $4 per direct labor hour

3 0
2 years ago
Which of the following statements about entrepreneurs is FALSE? A. Entrepreneurs are people who start a new business. B. Entrepr
9966 [12]

Answer:

C. Entrepreneurs aren’t exposed to any risk when starting a new business.

Explanation:

Entrepreneurs are the person who starts their own business and took a financial risk from the start. Entrepreneurs manage the activities on their own,  develop new ideas. and create the team for the benefit of the organization

Therefore, Entrepreneur exposed to the financial risk while starting their own business

hence, the correct option is C.

3 0
3 years ago
Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statem
Levart [38]

Answer:

a) Break-even point in dollar for 2017

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost)/Sales

C.M Ratio = $(2,500,000-1,750,000)/2,500,000

C.M Ratio = 0.30 or 30%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.30

= $2,833,333.33

<u>Alternative 1</u>

<em>Sales Price per unit after increasing 20%,</em>

Sales Price = ($5*0.2) + $5 = $6

Total Sales ($) = (Sales Price x Sales Units)

Total Sales ($) = ($6*500,000) =$3,000,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = ($3,000,000- $1,750,000)/$3,000,000

C.M Ratio = 0.42 or 42%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.42

= $2,023,809.52

<u>Alternative 2</u>

<em>Commission</em> = $2,500,000*5% = $125,000

Change in fixed annual salaries = $150,000-$60,000 = $90,000

Total fixed costs after deducting the changes in fixed salaries = $850,000-$90,000 = $760,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost - Commission on sales)/Sales

C.M Ratio = ($2,500,000-$1,750,000-$125,000)/$2,500,000

C.M Ratio = 0.25 or 25%

Explanation:

Sales = $2,500,000

Sales Unit = $2,500,000/500,000 = $5

Variable Cost = 1,750,000

Fixed costs = $850,000

7 0
3 years ago
Star Corp. had the following accounts and balances in its general ledger as of December 31:
Alex

Answer:

=$ 25,500

Explanation:

cash equivalents will be petty cash + cash at bank

= 500+20,000+5000

=$ 25,500

Cash or cash equivalent refers to assets held in the form of cash or can easily convert into cash in less than 90 days. Examples of cash include petty cash, cash in hand, cash in the bank, and debt securities whose maturity is within 90 days. Cash or cash equivalent appears at the top on the list of assets in a balance sheet.

Marketable debt securities are short-term to bond issued by a corporation and held by another company. They are listed as a current asset if they are to be sold within one year to long term investment if they are expected to last longer. Marketable equity securities are capital instruments. They are listed as current assets if they are to be liquidated in one year or long term investment if longer.

8 0
3 years ago
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is:____________
leva [86]

Answer:

C) half of the order quantity

Explanation:

The constant demand assumption in the economic order quantity (EOQ) model permits that there should be a minimum number of goods any company should purchase in order to help minimize different types of costs accrued through this system.

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is half of the order quantity.

3 0
3 years ago
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