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Vladimir [108]
3 years ago
15

Ibarra Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department,

started the month with 16,100 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 $20,250. An additional 98,000 units were started into production during the month and 101,000 units were completed and transferred to the next processing department. There were 13,100 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $594,123 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:
Business
1 answer:
zmey [24]3 years ago
5 0

Answer:

Explanation:

To complete WIP

Conversion: 16,100 units × (100% – 20%)      12,880

Units started and completed (101,000-16,100)      84,900

Ending work in process:  

Conversion: 13,100 units × 30%        3,930

Equivalent units of production    101,710

Cost added during the period $ 594,123

Equivalent units of production      101,710

Cost per equivalent unit $               5.84

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Kunkel company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate
Lilit [14]

Answer:

using conventional costing system:

  • unit cost mercon = $21.40
  • unit cost wurcon = $90.80

total production costs using conventional costing system:

  • 4,000 units of mercon = 4,000 x $21.40 = $85,600
  • 8,000 units of wurcon = 8,000 x $90.80 = $726,400

Explanation:

                                                    Mercon           Wurcon

Direct materials cost per unit       $9.00             $7.00

Direct labor cost per unit             $6.00              $7.00

Direct labor-hours per unit            0.20                2.40

overhead rate applied                 $6.40            $76.80      

Number of units produced          4,000              8,000

overhead rate = total overhead / total direct labor hours = $640,000 / [(4,000 x 0.20) + (8,000 x 2.40)] = $640,000 / 20,000 = $32 per direct labor hour

unit cost mercon = $9 + $6 + $6.40 = $21.40

unit cost wurcon = $7 + $7 + $76.80 = $90.80

4 0
3 years ago
As more competitors launch their own products and the product progresses along its life cycle, company attention is focused on c
Mazyrski [523]

Answer:

B) selective

Explanation:

Selective demand can be defined as the consumers' preference for a specific brand.  

When your product is launched and during the growth stage, its demand can be classified as primary demand since there is little or no competition and consumers will buy the new product. But when more competitors get into the market and start launching their owns products, you must create a preference for your brand. Your products needs to stand out and develop or maintain core competencies during the maturity stage.

6 0
3 years ago
Enok, a prospective franchise owner, is looking to keep his monthly costs as low as possible. The franchisor he is checking out
Reika [66]

Answer:

(3) $3,750,000

Explanation:

The computation of the expect monthly sales to be as high is shown below:

Given that

Sales per month = $300,000

Royalty payments = 8% of sales

So, the expected monthly sales would be

= Sales per month ÷ Royalty payments percentage

= $300,000 ÷ 8%

= $3,750,000

We simply divided the sales per month by the royalty payment percentage i.e 8%

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4 years ago
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lyudmila [28]
<span>The use of an organization's operational data as the source data for a bi system is not usually recommended because it requires considerable processing and can drastically reduce system performance.
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4 years ago
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DochEvi [55]
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5 0
3 years ago
Read 2 more answers
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