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Archy [21]
3 years ago
12

Lansing, Inc. provides the following information for one of its department's operations for June (no new material is added in De

partment T):
WIP inventory-Department T
Beginning inventory (15,000 units, 60% complete with respect
to Department T costs) . . . . . . . . . . . . . . . . . . . . . .
Transferred-in costs (from Department S) . . . . . . . . . . . . $ 116,000
Department T conversion costs . . . . . . . . . . . . . . . . . . . . 53,150
Current work (35,000 units started)
Prior department costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,000
Department T costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209,050
The ending inventory has 5,000 units, which are 20 percent complete with respect to Department T costs and 100 percent complete for prior department costs.

Required:

Prepare a production cost report using FIFO.
Business
1 answer:
Eddi Din [679]3 years ago
3 0

Answer:

See Explanation Below

Explanation:

Given

Beginning inventory units = 15,000 units

Beginning Inventory Completed = 60% completed

Current work = 35,000 units started

Ending inventory = 5,000 units

Ending inventory completed = 20% completed

Using FIFO, the production cost report is as follows

First, we determine the physical flow of units;.

This is listed out as follows;

Beginning WIP Inventory: 15,000 units

Unit started this period: 35,000 units

Total units to account for = 50,000 units

Units completed and transferred out: 45,000 units

Ending WIP Inventory: 5,000 units

Total accounted units: 50,000 units

Unit completed and transferred out is calculated by;

Total units to account for - Ending WIP Inventory

= 50,000 units - 5,000 units

= 45,000 units

Calculating the EUP (Equivalent Unit of Production)

Equivalent Unit to complete beginning WIP Inventory

Direct Materials: 15,000 (100% - 100%) = 0 EUP (Direct)

Conversions: 15,000 (100% - 60%) = 6,000 EUP (Conversion)

Equivalent Unit started and completed: 30,000 EUP (Direct)

Equivalent Unit started and completed: 30,000 EUP (Conversion)

Equivalent Unit in ending WIP Inventory:

Direct: 5,000 units * 100% = 5,000 EUP (Direct)

Conversion: 5,000 * 20% = 1,000 EUP (Conversion)

Total Equivalent Unit of Production: 0 EUP + 30,000 EUP + 5,000 EUP = 35,000 EUP (Direct)

Total Equivalent Unit of Production: 6,000 EUP + 30,000 EUP + 1,000 EUP = 37,000 EUP (Conversion)

Note that;

Equivalent Unit started and completed is calculated as follows;

Total Units account for (45,000) - Beginning Unit (15,000) = 30,000 EUP

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7 0
2 years ago
What does a low asset turnover compared to the industry imply? The investment in assets may be too high. Sales are higher than a
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Answer:

A low asset turnover compared to the industry implies Net income is low relative to the investment in assets.

Explanation:

Asset turnover is the ratio of total sales or revenue to average assets. It is a measure used to gauge how effectively companies are using their assets to generate sales.

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3 years ago
Album Co. issued 10-year $200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective in
trapecia [35]

Answer: 12%

Explanation:

Stated interest rate is used in the calculation of the annual interest payment.

Interest payment = Face value of bonds * Stated interest rate

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3 0
3 years ago
During the 1990s, one of the dominant firms in the U.S. cigarette industry would raise prices once or twice a year by about 50 c
Veronika [31]

Answer:

This is an example of price leadership.

Explanation:

Price leadership is a type of practice where a firm, most likely a dominant one, sets the price and other firms follow it. It is commonly seen in an oligopoly market.  

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8 0
3 years ago
Josephine is a teenager who works part-time to make money to pay for the upkeep of her car, gasoline, and car insurance. she als
tino4ka555 [31]

Answer:

The correct answer is: in retail.

Explanation:

To begin with, if Josephine is a teenager who works part-time to make money for her own expenses and also she is like most of american youth who hold part-time jobs then the most probable place to work is in retail, where many teenagers are required due to the fact that the majority of the jobs given in that area are for people who do not need many skills or abilities and therefore that the common action to take is to hire young people to pay low salaries for part-time jobs.

5 0
3 years ago
Read 2 more answers
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