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
Alika [10]
3 years ago
14

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per

unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $200,000. The company produced 25,000 units, and sold 17,500 units, leaving 7,500 units in inventory at year-end. What is the value of ending inventory under absorption costing?
Business
1 answer:
Arturiano [62]3 years ago
8 0

Answer:

$150,000

Explanation:

The computation of value of ending inventory under absorption costing is shown below:-

Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit

= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)

= $5 + $4 + $3 + $8

= $20

Ending Inventory in units = Units produced - Units sold

= 25,000 - 17,500

= 7,500

Cost of Ending Inventory = Total Cost per unit × Ending Inventory units

= $20 × 7,500

= $150,000

So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.

You might be interested in
Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the firs
nasty-shy [4]

Answer:

If costs and percentage completion of these units in beginning inventory were:

Cost Percent Complete

Materials costs $7,900 60%

Conversion costs $6,900 30%

A total of 8,100 units were started and 7,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs $137,900

Conversion costs $323,900

The ending inventory was 80% complete with respect to materials and 75% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

The cost per equivalent unit for materials for the month in the first processing department is closest to $17.03

Explanation:

Weighted-average method is used to make an inventory valuation, taking average values ​​for both the merchandise in stock and for the costs of merchandise sold.

But in this case, since you have unfinished units, you must take the equivalent to calculate the unit cost.

Materials:

Units completed: 7,600

Units in process: 1,200 * 80% = 960

Equivalent production units: 7,600 +, 960 = 8560

Cost at start: 7,900

Added costs in the period: 137,900

Total cost: 7900 + 137,900 = 145,800

So: 145,800 / 8,560 = 17.03 is the equivalent unit cost per product

4 0
3 years ago
Long Text (essay)
skad [1K]

Answer:

Flooding and wet weather are so costly to agricultural land because they cause delays in and reduction of crop harvest.

Explanation:

5 0
2 years ago
Which of the following statements is true.
Ad libitum [116K]
A. Women face wage discrimination and experience lower pay within similar professions compared to men.
4 0
2 years ago
Read 2 more answers
Categorize the scenarios as either a discretionary act or the result of automatic stabilizers.
Lina20 [59]

Answer:

a. automatic stabilizers.

b. automatic stabilizers.

Discretionary spending

Discretionary spending

Explanation:

Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments

In an expansion, progressive tax increases the tax paid and this reduces disposable income

In a contraction, tax paid is reduced and this increases disposable income

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

8 0
2 years ago
Given below are lease terms at the local dealership. What is the total cash
adell [148]

Answer:

1) 2,475

down payment+security deposit+acquisition fee= total cost

sorry if I miss something

4 0
3 years ago
Other questions:
  • On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable
    9·1 answer
  • Red Co. had $3 million in accounts receivable recorded on its books. Red wanted to convert the $3 million in receivables to cash
    10·1 answer
  • The risk premium of a security is determined by its ________ risk and does not depend on its
    15·1 answer
  • During the year, Belyk Paving Co. had sales of $2,384,000. Cost of goods sold, administrative and selling expenses, and deprecia
    11·1 answer
  • 12.The metric that measures how well an enterprise is using customers to create short-term and long-term value is
    12·1 answer
  • Which life insurance policy would be eligible to include an automatic premium loan provision? increasing term level term decreas
    10·1 answer
  • Your total liabilities excluding mortgage debt should not exceed what percentage of your net worth excluding the value of your h
    8·1 answer
  • Mary, a real estate agent, buys for herself a property that her principal, Karen, wanted to buy. If Mary is aware that Karen wan
    9·1 answer
  • In regard to Project Work, which activity refers to reviewing the progress and capturing project performance data with reference
    5·1 answer
  • Suppose that​ Firm A and Firm B are independently deciding whether to sell at the low price or a higher price. The payoff matrix
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!