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
Hunter-Best [27]
3 years ago
10

Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a proc

ess cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Package department which prepares items for sale in kits or individually.
The following information is available for the Molding department for January:
Work in process beginning:
Units in process
22,000
Stage of completion for materials
80%
Stage of completion for labor and overhead
30%
Costs in work in process inventory:
Materials
$168,360
Labor
67,564
Overhead
17,270
Total costs in beginning work in process
$253,194
Units started into production in January
60,000
Units completed and transferred in January
58,000
Costs added to production:
Materials
$264,940
Labor
289,468
Overhead
60,578
Total cots added into production in January
$614,986
Work in process ending
Units in process
24,000
Stage of completion for materials
50%
Stage of completion for labor and overhead
10%
Instructions:
Prepare a production cost report for Waterways using the weighted-average method and then show the journal entry for transferring the units from Molding to the Cutting Department.
Business
1 answer:
aksik [14]3 years ago
4 0

Answer:

Beginning 22,000

Started 60,000

Total units accounted for by the Department 82000

Units to be assigned costs:

                        Physical Units Materials Conversion

Beginning                 22,000  17,600(80%)  6,600(30%)

Started and completed 36,000  36,000          36,000

transferred                 58,000 58,000      58,000

ending                        24,000   12,000(50%) 2,400(10%)

Total units                82,000 70,000       60,400

(weigthed average)

Equivalent Cost:

               Direct Materials Conversion

Total cost   $433,300.00   $434,880.00

Total equivalent units 70000             60,400

Cost per equivalent unit $6.19           $7.2

Costs charged to production:   \left[\begin{array}{cccc}&Direct Materials&Conversion&Total\\$Beginning&168360&84834&253194\\$Incurred&264940&350046&614986\\$Total accounted for&&&868180\\\end{array}\right]

Cost allocated to completed and partially completed units:

\left[\begin{array}{ccccc}&Direct Materials&Conversion&Total\\$Beginning&136,180&158,400&294,580\\$Started and completed&222,840&259,200&482,040\\$Transferred-out&&&776,620\\$Ending&74,280&17,280&91,560\\$Total costs assigned&&&868,180\\\end{array}\right]

Explanation:

We add beginning and transferred-in to get total physical units

then, we apply the percentagge of completion and calcualte the equivalent units

which is under weigthed average method:

transferred-out units + percentage of completion in ending WIP

then, we calculate the equivalent cost per unit.

Last, we do the cost reconciliaton.

You might be interested in
Advanced Printing Systems is a firm in a monopolistically competitive market. If it is selling its product at $11 at the equilib
tamaranim1 [39]

Answer:

The long-run average total cost will be $11.

Explanation:

A monopolistic firm earns a normal profit in the long run. Equilibrium is achieved at the point where the marginal revenue curve is intersected by the marginal cost curve. The equilibrium output level is determined by this intersection.

The price is fixed higher than the marginal cost, the price is equal to the average total cost. This is because if the price is higher the existing firms will be having profits. This will attract potential firms in the market. The entry of new firms will lead to an increase in supply. As a result, the price will decline. This process will continue until the price level becomes equal to the average total cost and all profits are exhausted.

So, here if the price of the product is $11 and the firm is enjoying normal profits, the average total cost will also be $11.

3 0
3 years ago
A delivery van that cost $40,000 has an expected service life of eight years and a residual value of $4,000. Depreciation expens
vladimir1956 [14]

Answer:

$7,500

Explanation:

Calculation for the Depreciation of rah second year of the asset's life

Second year depreciation=(1/8 years*2)*[($40,000)-(1/8 years*2* $40,000)]

Second year depreciation=(0.25)*[($40,000)-(0.25*$40,000)]

Second year depreciation=(0.25)*[($40,000-$10,000)]

Second year depreciation=0.25*$30,000

Second year depreciation=$7,500

Therefore the Depreciation of rah second year of the asset's life using the double-declining-balance method is: $7,500

5 0
3 years ago
What happens during the adjourning stage of the five-stage group-development model? wrapping up activities assimilating a common
Doss [256]

Answer:

The answer is, wrapping up activities.

Explanation:

Adjourning stage is the last part of the team formation and continuation. This stage usually arrives after the purpose of the team is achieved. Or it could happen if the objectives are not achieved and the team decides to seperate and move on from there.

Wrapping up the team activities can include preparing the final reports, giving feedback, analysing the results, etc.

3 0
3 years ago
Read 2 more answers
Why do i sometimes need to chose between my wants and needs
maksim [4K]

Answer: needs are more important than wants ! you need to water to survive but want the new PS5.

Explanation:

8 0
1 year ago
True or false: the term economic investment includes purchasing stocks, bonds, and real estate.
Lapatulllka [165]
False because it doesnt invest the stocks
6 0
3 years ago
Other questions:
  • Fulton and Sons, Inc. presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for
    5·1 answer
  • The following information is available for Wonderway, Inc., for 2018: Factory rent $ 28,300 Company advertising 20,200 Wages pai
    13·1 answer
  • Schrock Company purchases a new delivery van for $60,000. The sales taxes are $4,500. The logo of the company is painted on the
    9·1 answer
  • Latisha likes apple juice and orange juice equally well, however she normally drinks orange juice with her breakfast each day. A
    13·1 answer
  • What is true about departmental accountable officials with regards to pecuniary liability?
    10·1 answer
  • Dave has been suggested to assume his firm is operating at full capacity and its net fixed assets can be added by any amount. Th
    13·1 answer
  • The inflation rate, as measured by CPI, should remain at or below _______% to achieve price stability.
    7·1 answer
  • On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the
    5·1 answer
  • An
    7·1 answer
  • A company purchased new equipment for $45,000. The company paid cash for the equipment. Other costs associated with the equipmen
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!