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
telo118 [61]
3 years ago
13

Tache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding D

epartment, started the month with 17,450 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $7,840. An additional 89,900 units were started into production during the month and 92,900 units were completed in the Welding Department and transferred to the next processing department. There were 14,450 units in the ending work in process inventory of the Welding Department that were 90% complete with respect to conversion costs. A total of $203,300 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:___________
a. $2.010
b. $2.245
c. $1.994
d. $2.319
Business
1 answer:
leonid [27]3 years ago
8 0

Answer: c. $1.994

Explanation:

Cost per Equivalent Unit of Production (EUP) for Conversion = Total Conversion costs/ EUP

Total Conversion cost

= Conversion cost for beginning work in process inventory + Conversion cost incurred in the month

= 7,840 + 203,300

= $211,140

EUP = Units completed + Percentage of ending Units completed with regards to conversion

= 92,900 + (90% * 14,450)

= 105,905 units

Cost per Equivalent Unit of Production (EUP) for Conversion = 211,140 / 105,905

= $1.9936

= $1.994

You might be interested in
Each month a company can rent capital for $7.500 per unit and can hire workers for $2.500 each Currently me company is using 4 u
Sophie [7]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
Kohlman Company began its operations on March 31 of the current year. Projected purchases for the first three months of business
bulgar [2K]

Answer:

c. $146,400 and 206,560.

Explanation:

Monthly Purchases are as follows;

April =$156,800

May= $195,200

June= $217,600

Since Admin expenses are paid every month,

April =$28,800

May = $28,800

June =$28,800

75% of April purchases will be paid in April . Use these to calculate the payments;

Pmts

April = 75%* $156,800 = $117,600

add Admin expenses to find total cash payments;

APRIL = $117,600+ $28,800 = $146,400

In May,20% of April purchases will be paid ,  75% of  May purchases will also be paid plus admin expenses. Use these to calculate the payments;

May= (20%* $156,800) + (75% * $195,200) + $28,800

MAY = 31360 +146400 +28800 = $206,560

7 0
3 years ago
When Tesla first launched their electric vehicles in the United States, they deviated from the norm in the automobile industry a
Damm [24]

Answer:

The choice of Tesla is known as Forward Integration.

According to the principles of Transaction Cost Economics, this is a good decision.

Explanation:

Companies sometimes take over the operations/businesses that deal with the distribution and supply of their products and or services. This move is known as forward integration.

Traditionally, companies focus on production then bring in middle-men such as Franchise owners, wholesales, dealers, and retailers to distribute their merhandise to the end user. Whilst there are associated benefits with this model, it's been found that the interests of the middle men also generate considerable costs.

In order to competitive advantage, companies are modifying their business models such that end users can deal directly with them thus reducing the final price of their goods and or services making them more accessible and easier to purchase for the consumers.

Transaction Cost Economics refers to the various ways in which an organisation can be set up in order to manage or control the costs associated with its transactions. The goal of transaction cost economics is to reduce overall costs in order to optimize profits, stay competitive and maintain growth by managing and modifying organisational structures and business models.

The most optimized organisational structure/business model is that which is able to attain the highest efficiency possible by operating at the lowest cost possible.

Good or Bad Decision

The market for motor vehicles is an oligopoly.

Therefore, price is an important factor to consider. As a more recent entrant into that space, this is very crucial for Tesla.

Tesla is not only entering into a market dominated by giants, but is also tryin to modify the way people know to drive cars (at least in most parts of the world). Therefore, it is a great move that it is going with a Price Penetration Strategy. Thus by cutting off the Franchise-Oriented dealerships and selling directly, Tesla is able to retain control over the price of it's vehicles.

The whole essence of reducing it's costs is so that it is able to make its products available to the consumers as an alternative to fossile fuel powered vehicles at the lowest cost possible. Despite it's best efforts, there are still petrol powered cars that are at least $10,000 cheaper that what Tesla is offering.

Besides price, one major factor that influences the choice to go with hybrid or 100% of electric cars is that they are clean and very environmental friendly.

Cheers!

5 0
3 years ago
An example of opportunity cost:
maria [59]

Answer: b. Is the Chinese food that you gave up when you chose to eat Italian food.

Explanation: Opportunity cost refers to the cost of the next best alternative foregone or sacrificed. When an individual chooses to take a certain action, then his opportunity cost of doing that will be the alternatives that he has foregone.

IT can be expresses as,

Opportunity cost = \frac{Units sacrificed}{Units Gained}

When the individual chooses Chinese food when he could have choose to eat Italian food, his opportunity cost will be the Chinese food that you gave up.

For other options there is no information on what was given up.

8 0
3 years ago
Under the FLSA, regular rate of pay does not include: A. vacation pay. B. severance pay. C. overtime pay. D. earned bonuses. E.
Galina-37 [17]

Answer:

The correct answer is A

Explanation:

FLSA stands for Fair Labor Standard Act, which is defined as the act that usually requires, the covered non- exempt employees to receive the overtime pay, at least 1 and 1/2 times of their regular pay for the time they worked in excess of the 40 hours per week of the work.

The regular rate is defined as the remuneration which involves all the employment remuneration that are subject to the exclusions mentioned in the Section 7 under sub section (e) of the FLSA.

So, the vacation pay is the one which is not involved in the regular rate as any time earned gained over 40 along with the vacation is the straight time which will not be paid.

5 0
3 years ago
Other questions:
  • Why is it important to communicate with employees frequently?.
    12·2 answers
  • Young Bobby opened a lemonade stand in his front yard. He used $4 worth of lemons, sugar, and cups, and paid his little sister $
    10·1 answer
  • The campus bookstore sells​ 4,000 sets of graduation regalia each year. Placing an order from their supplier costs​ $25 regardle
    13·1 answer
  • A family wishes to save for future college expenses. Which financial tool should the family invest in?
    8·1 answer
  • Financial statement data at December 31 for Ecco Company are as follows: Cost of goods sold $552,500 Inventories: Beginning of y
    11·1 answer
  • When the CPI increases from 200 in 2016 to 210 in 2017 and the nominal wage rate is constant at​ $10 an​ hour, the real wage rat
    12·1 answer
  • Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth
    14·1 answer
  • Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common
    5·1 answer
  • Ellie Inc., a calendar year C corporation, wants to make a gift to a charity that is deductible on its year 1 Form 1120. The gif
    8·1 answer
  • Tamekia reports that the market leader in the TZX mitt category has 60 percent of all sales in the market and spends $240,000 a
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!