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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

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Answer:

Permits will be the best option

Explanation:

Assuming the cost per ton of polution reduction follows a linear progression and it can reach zero

<u>The best option will be the permits:</u>

As Firm B will eliminate their polution and sale his permis to Firm A

That occur as Firm B is more efficient in doing this will sale to Firm A

In the end Firm A will have all the permits and continue to produce 200 tons

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This is a market solution which little intervention from the Gvernment

Cost to eliminate 200 polution with permits:

200 x $10 = 2,000

If we force each company to reduce pollution Firm A higher cost will create deadweight-loss

100 x $20 = 2,000

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Normally, BC bottling company attaches plastic labels to its bottles. However, a new company is launching a product that require
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You just sold 900 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You
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And, the same is to be relevant

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