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
balandron [24]
3 years ago
7

E3-17 (Algo) Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted-Average Method) [LO 3-3] Vista Vacuum Company

has the following production information for the month of March. All materials are added at the beginning of the manufacturing process. Units Beginning inventory of 3,300 units that are 100 percent complete for materials and 30 percent complete for conversion. 15,100 units started during the period. Ending inventory of 3,300 units that are 11 percent complete for conversion. Manufacturing Costs Beginning inventory was $20,100 ($10,500 materials and $9,600 conversion costs). Costs added during the month were $30,400 for materials and $48,500 for conversion ($27,100 labor and $21,400 applied overhead). Assume the company uses Weighted-Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for March. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the costs to be assigned to the units transferred out and the units still in process.
Business
1 answer:
dalvyx [7]3 years ago
7 0

Answer:

1.  materials = 18,400 units and conversion = 15,463 units

2. materials = $2.22 and conversion = $3.76

3. units transferred out = $90,298 and units still in process = $8,691

Explanation:

Units Completed and Transferred = Opening Work In Process Inventory + Started during the Period - Closing Work In Process

                                                          = 3,300 + 15,100 -  3,300

                                                          = 15,100

<u>First Calculate the Equivalent units of Production in Respect of Materials and Conversion Costs :</u>

1. Materials

Closing Work In Process (3,300 × 100%)                    = 3,300

Completed and Transferred (15,100 × 100%)              = 15,100

Equivalent units of Production for Raw Materials      = 18,400

2. Conversion Costs

Closing Work In Process (3,300 × 11%)                              =     363

Completed and Transferred (15,100 × 100%)                    =  15,100

Equivalent units of Production for Conversion Costs      = 15,463

<u>Then calculate the cost per equivalent unit for materials and conversion :</u>

Cost per equivalent unit = Total Costs (Opening + Current Year) ÷ Total Equivalent Units

1. Materials

Cost per equivalent unit = ($10,500  + $30,400) ÷ 18,400

                                        = $2.22

2. Conversion Costs

Cost per equivalent unit = ($9,600  + $48,500) ÷ 15,463

                                        = $3.76

<em>Total Cost per equivalent unit = Materials + Conversion Costs</em>

                                                  = $2.22 + $3.76

                                                  = $5.98

<u>Then, determine the costs to be assigned to the units transferred out and the units still in process</u>

Units transferred out = units completed and transferred ×  Total Cost per equivalent unit

<em>                                   = </em>15,100 × $5.98

                                  = $90,298

Units Still In Process :

Materials (3,300 × $2.22)             = $7,326

Conversion Costs ( 363 × $3.76) = $1,365

Total                                               = $8,691

You might be interested in
Which of the following best describes a push strategy? Group of answer choices Manufacturer builds strong consumer demand for a
maksim [4K]

Answer: Manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

Explanation:

In a push strategy the manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

In a push strategy, the firm takes it's products to the consumer. The aim of this is for the product to gain much exposure than it already has and attract more sales. Other sales channels are bypassed in the scenario, leaving just the producer and the customer. Advertisment is one of the greatest promotional tool for push strategy.

6 0
3 years ago
For the month of September, Florida, Inc., incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade pr
Ludmilka [50]

Answer:

$0.10 is the correct answer.

Explanation:

8 0
2 years ago
What type of supporting schedule is designed to show detailed tests performed, does nottie into the general ledger, but must sta
lianna [129]

Answer:

C) examination of supporting documents

Explanation:

<em>Examination of supporting documents</em>, is a  type of supporting schedule, which is designed to show detailed tests performed, does not tie into the general ledger, but must state a positive or negative conclusion about the objective of the test.

8 0
3 years ago
Marianne's Chocolates sell well in the U.S. at a price of $24 per pound, and she has overproduced one kind of chocolate bar. Mar
sammy [17]

Answer: Variable cost pricing

Explanation:

Marianne wants to sell in Mexico by setting the selling price in such a way that she adds the total variable cost to the markup. This way she would meet her cost and gain some level of profit.

8 0
3 years ago
The expected before-tax IRR on a potential real estate investment is 14 percent. The expected after-tax IRR is 10.5 percent. Wha
NeX [460]

Answer:

25%

Explanation:

The expected before-tax IRR on a potential real estate investment is 14%

The expected after-tax IRR is 10.15%

Therefore, the effective tax rate on this investment can be calculated as follows

Effective tax rate= 1-(after-tax IRR/before-tax IRR)

Effective tax rate= 1-(10.15/14)

= 1-0.75

= 0.25×100

= 25%

Hence the effective tax rate is 25%

6 0
3 years ago
Other questions:
  • A law or set of laws are created to give a policy legal force
    10·1 answer
  • A computerized spreadsheet program is useful for
    12·1 answer
  • When the consumer price index falls, the typical family has to spend fewer dollars to maintain the same standard of living.
    14·1 answer
  • Assume the following: Sales = $400M; Net Income = $60M; TA = $350M; and there is $0.50 in total debt per dollar of total equity.
    9·1 answer
  • A new customer wants to open an account at your firm. When you ask him for a street address, he tells you that he will be moving
    8·1 answer
  • What three factors influence the value of a country’s currency?
    15·2 answers
  • Federated investors has a , with each mutual fund being managed by several portfolio managers who together take responsibility f
    13·1 answer
  • Which economic system supports government control of major basic industries but allows a high degree of personal and economic fr
    11·1 answer
  • Which of the following is not a characteristic of an organizational objective?
    11·1 answer
  • Assume that you are the president of your own company and paid a year end bonus according to the amount of net income earned dur
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!