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3 years ago

Preparing a Process Costing Production Report (Weighted-Average Method) [LO 3-2, 3-3, 3-4]

Business

1 answer:

vagabundo [1.1K]3 years ago

7 0

Answer:

a. Reconciliation of the number of physical units worked on during the period.

As at Beginning 36,000

Units started in current period 74,000

Units to be accounted for 110,000

Transferred out 21,000 Balancing figure

(110,000 - 89,000)

As at end 89,000

Units accounted for 110,000

b. Calculation of equivalent units.

Direct Materials Conversion Costs

Transferred out (A) 21,000 21,000

Units as at end (B) 89,000 89,000

Percentage of completion (C) 100% 52%

Equivalent units as at 31 Dec 89,000 46,280

(D = B * C)

Total equivalent units (A+D) 110,000 67,280

c. Calculation the cost per equivalent unit.

Direct Materials Conversion Total

As at beginning 48000 105000 153000

Added during the period 91000 161000 252000

Costs to be accounted for 139000 266000 405000

Total equivalent units 110,000 67,280

Cost per equivalent unit 1.26364 3.95363 5.21726

Note: Cost per equivalent unit = Costs to be accounted for / Total equivalent units

d. Reconciliation the total cost of work in process.

Direct Materials Conversion Total

Units as at end (A) 89,000 89,000 89,000

Cost per equivalent unit (B) 1.26364 3.95363 5.21726

Percentage of completion (C) 100% 52%

Total cost (A*B*C) 112,464 182,974 295,437

Cost of closing WIP = Costs to be Accounted for - Costs Transferred Out

= 405000 - (21000 units * 5.21726)

= 405,000 - 109,562.46

= 295437.54

= $295,4378

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Answer: True

Explanation:

Variable selling and administrative expenses increase with the number of sales so in order to get them, one needs to multiply the number of sales by the variable and administrative expenses.

This also goes for the budgeted variable selling expenses. To find out these costs, multiply the expected variable and admin expenses by the budgeted number of sales. The amount you get will show the amount of variable expenses to budget based on the sales you budgeted.

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3 years ago

The theory that higher-income taxpayers should be taxed less because their savings and investments stimulate the economy is know

Varvara68 [4.7K]

Answer:

The correct answer is: supply side economics.

Explanation:

Supply-side economics is a macroeconomic theory which advocates lowering of taxes and decrease in regulation to boost economic growth. It is directly in contrast to demand-side economics.

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This theory states that economic growth can be stimulated by boosting investments through tax reduction.

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3 years ago

A young couple has $300,000 that they have used to aggressively trade growth stocks. They place their account with a Registered

EastWind [94]

Answer:

the investment advisor should do nothing

Explanation:

In the scenario that is being described, the investment advisor should do nothing. This is because the investment advisor did nothing wrong or illegal, he simply followed the instructions that were strictly provided by the clients, therefore acting in accordance with the customers' wishes. Meaning that he has nothing to fear from the client's being accept because they have no standing to take legal action against the advisor.

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3 years ago

The Fashion Shoe Company operates a chain of women's shoe shops around the country. The shops carry many styles of shoes that ar

timofeeve [1]

The computation of the break-even point (in units) is given below:

Break-eventpoint = Fixed cost / contribution margin.

= Fixed cost / (selling price - variable cost)

= $158,000/ ($20-%10)

= $158,000/ $10

= %15,800 units.

The break-even point (in units) for Shop 48 is 15,800 units. It can be computed by dividing the amount of fixed cost by the amount of per unit contribution margin. And the per unit contribution margin can be computed by deducting the variable cost per unit from the selling price per unit.

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Learn more about the break-even point at

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2 years ago

The classification and normal balance of the drawing account are a.expense, debit balance b.expense, credit balance c.liability,

Elis [28]

Answer:

The answer is D. owner's equity, debit balance

Explanation:

Drawing is the money or goods taken out from business by its owner. This act is usually common in partnership or sole proprietorship.

A drawing is not an expense, rather it is a reduction in owner's equity.

To credit owner's equity means to increase its equity and to debit owner's equity means to decrease or reduce its equity.

Since, drawing is a reduction in owner's equity, we debit owner's equity making option D. the correct answer.

Option A and B are wrong because drawings are not classified as an expense.

Option C is also wrong because a drawing is never a liability.

7 0

3 years ago