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
barxatty [35]
3 years ago
9

Santana Mortgage company uses a process cost system to accumulate costs in its application department. When an application is co

mpleted, it is forwarded to the loan department for final processing. The following processing and cost data pertain to September.
1. Applications in process on September 1:100.

2. Applications started in September: 1000

3. Completed Applications during September:800.

4. Applications still in process at September 30 : 100% complete as to materials (forms) and 60 % complete as to conversions costs.

Beginning WIP:

Direct materials - $1,000

Conversion costs- $3960

September costs:

Direct Materials - $ 4500

Direct labor- $ 12000

Overhead $ 9,520

Materials are the forms used in the application process and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process.

Instructions:

a. Determine the equivalent units of service (production ) for materials and conversion costs.

b. Compute the unit costs and prepare a cost reconciliation schedule.
Business
1 answer:
baherus [9]3 years ago
7 0

Answer:

Explanation:

opening wip                 100

Started                         1000

                                      1100

completed                   -800

closing wip                   300

Using weighted Average process cost Table

cost         opening      current     Total      complete   Wip   equivalent   Cost

head                                              cost                                        Units       p.unit  

material    1000           4500        5500        800         300        1100            5

CC            3960           21520      25480       800         180          980          26

                                                     30980                                                        31

A) equivalent units of service (production ) for materials and conversion costs.

material                1100

CC                         980

B)

unit costs

material                5

CC                        26

                            31  

Complete  800   31.00   24,800  

   

Closing Wip    

   

Material         300   5.00     1,500  

Labour          180   26.00     4,680  

                                     6,180  

   

Total Cost                     30,980  

You might be interested in
How does an economist calculate GDP for one year using the expenditure approach?
ryzh [129]
An economist calculates the GDP for one year using the expenditure approach by adding together all the amounts spent on final goods and services. This also includes investments, government consumptions and net exports. The answer to the question would be choice A.
6 0
3 years ago
Read 2 more answers
Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in the mine cost
Paraphin [41]

Answer:

Ore deposit depletion and Mining machinery depreciation Journal entries

Dr Depletion charge (Ore deposits) 405,528

Cr Accumulated depreciation 405,528

Dr Depletion charge (Ore deposits) 23,268

Cr Accumulated depreciation 23,268

Explanation:

Preparation of the year-end entries to record both the ore deposit depletion and the mining machinery depreciation of Montana Mining Co

Depletion of natural resources can be defined as the way in which the cost of natural resources is apportioned upto the period when it will be utilized which is why they are shown at cost in balance sheet.

The entry is to record depreciation charged on ore deposit depletion. Therefore To record this entry we have to debit depletion charges, and credit accumulated depreciation

Dr Depletion charge (Ore deposits) 405,528

Cr Accumulated depreciation 405,528

Computation of depletion cost per unit:

The depletion cost per unit can be calculated by dividing the net cost of the ore with the total units of capacity :

Depletion/units = Cost - Salvage/ Total unit of capacity

$3,721,000/1,525,000 tons

=$2.44

Hence, depletion per unit is $2.44.

Computation depletion amount on ore deposit:

The depletion amount on ore deposit can be calculated by multiplying the cost per depletion unit with the number of units utilized:

Depletion =Cost/Unit ×Units Utilized

$2.44×166,200 tones

=$405,528

Hence, depletion expenses on ore deposit amounts to $405,528.

The pass entry to record depreciation charged on mining machine :

Dr Depletion charge (Ore deposits) 23,268

Cr Accumulated depreciation 23,268

Computation of depreciation cost per unit:

The depletion cost per unit can be calculated by dividing the net cost of the ore with the total units of capacity :

Depletion/units = Cost - Salvage/ Total unit of capacity

$213,500/1,525,000 tons

=$0.14

Hence, depreciation per unit is $0.14.

Computation of depreciation amount on ore deposit:

The depletion amount on ore deposit can be calculated by multiplying the cost per depletion unit with the number of units utilized:

Depletion =Cost/Unit ×Units Utilized

$0.14×166,200 tones

=$23,268

Therefore the depreciation expenses on ore deposit amounts to $23,268

4 0
3 years ago
Um...look what i found
Ksju [112]
NASTY AND ALSO THE GUY THE ANSWERED IS NOW BANNED HAHAHA
8 0
2 years ago
Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instea
vladimir1956 [14]

Answer:

see below

Explanation:

A firm may either opt to shutdown or declare bankruptcy if its making losses.  A shutdown will involve ceasing operations and disposing of assets to pay creditors. Declaring bankruptcy shields the business from debt obligations or seizing of assets by its creditors.

Many businesses opt to declare bankruptcy because shutting down is costly. Except for properties, other assets are likely to be liquidated at costs below their book value. With the burden of debts shelved for some time, a business has a chance of bouncing back to profitability. A loss-making firm whose price is above the average variable cost should continue operating.

3 0
2 years ago
This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. The equilibrium number
DiKsa [7]
Please attach the graph if you can. Otherwise, I cannot answer this question
8 0
3 years ago
Other questions:
  • PLEASE HELP
    5·1 answer
  • A second job interview would most likely be in which stage of knapp's relational model? integrating intensifying bonding experim
    8·1 answer
  • Transactional relationships: Group of answer choices A.None of the above. B.are emphasized by buyers when the purchase is viewed
    13·1 answer
  • Which of the following words is not spelled correctly? a. guitar c. cost b. amiga d. war
    6·2 answers
  • GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in adv
    5·1 answer
  • The law of demand is based on the observation that:________.
    8·2 answers
  • A government imposes a per-unit tax on light bulbs in a competitive market. Afterward, the seller's after-tax price increases fr
    14·1 answer
  • What is another term for the part
    6·1 answer
  • The key to successfully competing is understanding what customers want and then __________ satisfy those wants.
    13·1 answer
  • On January 1 of this year, Clearwater Corporation sold bonds with a face value of $ 750,000 and a coupon rate of 8 percent. The
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!