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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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You are stowing items and come across an aerosol bottle of hairspray. What

liubo4ka [24]

Question Completion with Options:

o Stow the hairspray

o Raise an Andon

o Remove it and secure it with bubble wrap

o Place a Flammable sticker on the bottle

Answer:

What to do:

o Stow the hairspray

Explanation:

Stowing means the arrangement or placement of items, especially in a neat, compact way to enable easy retrieval when required. Therefore, you should continue what you have started by arranging the bottle of hairspray where it belongs in the appropriate packing space. Stowing ensures that items are properly arranged and put in their proper places or conditions when they are not in use.

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3 years ago

Daris Corporation is authorized to issue 1,000,000 shares of $5 par value common stock

statuscvo [17]

Answer:

Daris Corporation

General Journal:

Jan. 1:

Debit Incorporation fees RM2,000

Credit Cash Account RM2,000

To record the payment of incorporation fees to the state.

Jan. 15:

Debit Issue of Shares RM3,500,000

Credit Common Stock RM3,500,000

To record issue of 500,000 shares at RM7 per share.

Jan. 30

Debit Legal Fees RM8,000

Credit Issue of Shares RM3,500

Credit Additional Paid-in Capital RM4,500

To record the issue of 500 shares to settle legals fees of RM8,000

July 2:

Debit Land RM900,000

Credit Issue of Share RM700,000

Credit Additional Paid-in Capital RM200,000

To record the issue of 100,000 shares of stock for land.

Sept. 5:

Debit Treasury Stock RM105,000

Debit Additional Paid-in Capital RM45,000

Credit Cash Account RM150,000

To record the repurchase of 15,000 shares of common stock at RM10 per share.

Dec. 6:

Debit Cash Account RM121,000

Credit Treasury Stock RM77,000

Credit Additional Paid-in Capital RM44,000

To record the resale of 11,000 shares of the treasury stock at RM11 per share.

Explanation:

The Additional Paid-in Capital (APIC) or sometimes referred to as Excess Capital over Par Value is an equity account where the above and below par value of the sale and repurchase of stock is recorded. This makes the Stock account to maintain a stable figure. This implies that the changes caused by above and below par value is taken care in this account. It also takes care of treasury stock above and below par value sale.

Treasury stock is a common stock contra account. It means that the value of the treasury stock reduces the value of the common stock. There are two methods for treating the above and below par value in treasury stock. One method is the costing method which records the changes in the treasury stock account. The other method is the par value method. With this method, only the par value of treasury stock is recorded in the account. The above and below par value changes are recorded in the Additional Paid-in Capital account.

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3 years ago

Allen transfers marketable securities with an adjusted basis of $120,000, fair market value of $300,000, for 85% of the stock of

julia-pushkina [17]

Answer:

True

Explanation:

The reason is that it is transfering marketable securities for another marketables securities which are subject to a change of values as the previous one. Only the amount received in cash was realized thus, that is the amount of gain Allen will recognize as capital gain

The other part is unrealized gain until this shares are sold point atwhich, Allen which check for how much is the realized gain/loss in the transaction

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3 years ago

Chipper, the marketing director for Tee Time Golf Resort, is making plans for the annual tournament and is trying to determine t

HACTEHA [7]

Chipper's analysis of the situation sounds reasonable to the general manager-This statement is true according to the expectancy theory.

Explanation:

Expectancy theory states that the employee in an organization will be motivated to work or put in efforts if they believe that the putting in more effort will yield them better result in terms of their job performance (The benefits can be in form of an increase in salary or incentives)

An employee would be motivated to put in higher amount of effort to perform better on the job. This would occur at an even rate if he knew what the rewards were going to be.

For instance, an extra day off or increase in salary.

According to expectancy theory, the participants will ask themselves if it is possible to win the tournament given the other talent that will be competing, and, whether the experience and reward be worth the expense that they are incurring for a round of golf.

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4 years ago

You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 perce

Alenkinab [10]

Answer:

10.18%

Explanation:

The computation of the WACC is shown below:

But before that following calculation is to be done

The value of debt is

= 14000 × $1,000 × 107%

= $14,980,000

The value of equity is

= 470,000 × $65

= $30,550,000

The value of preferred stock is

= 20,500 × $86

= $1,763,000

Now

value of total capital is

= $14,980,000 + $30,550,000 + $1,763,000

= $47,293,000

Now we find the cost of debt using excel function i.e.

= RATE(nper,pmt,pv,fv)) × 2

= RATE(29 × 2,1000 × 6.3% ÷ 2,-1000 × 107%,1000)) ×2

= 5.80%

Now

Cost of common stock is

= 5.2% + 1.16 × 7%

= 13.32%

cost of preferred stock is

= (100 × 4.1%) ÷ 86

= 4.77%

Now finally

WACC = weight of debt × cost of debt ×(1 - tax rate) + weight of equity × cost of equity + weight of preferred stock ×cost of preferred stock

= ($14,980,000 ÷ $47,293,000) × 5.80% × (1 - 24%)+($30,550,000 ÷ $47,293,000) × 13.32% + ($1,763,000 ÷ $47,293,000) ×4.77%

= 10.18%

5 0

3 years ago