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
Opinion: Based on marginal analysis that examines costs and benefits, why do some people choose NOT to eat organic food?
Katyanochek1 [597]

Non-organic food is cheaper, and often has brand names, which appeal to the consumer more than an organic brand does.

3 0
3 years ago
Read 2 more answers
Which of these products is an example of perfect competition?
Helen [10]
A. correct me if im wrong
8 0
3 years ago
Given the following information, calculate the loan-to-value ratio of this commercial loan: estimated net operating income in th
tatyana61 [14]

Answer:

b. 0.77

Explanation:

The formula to compute the loan to value ratio is shown below:

= Loan amount ÷ Purchase price

= $1,000,000 ÷ $1,300,000

= 0.77

It shows a relationship between the loan amount and the purchase price so that the accurate ratio can come

All other information that is given is not relevant as it is related to the debt yield ratio. Hence, ignored it

7 0
3 years ago
Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produc
maksim [4K]

Answer:

B) 1.7

Explanation:

GDP deflator simply shows the occurring event of the level of prices in the economy which is why It is often the ratio of nominal GDP to real GDP.

GDP deflator in 2009 will be:

Norminal GDP

Cost of apple= $1 in 2009

Apple produced =5 in 2009

Cost of oranges= $1.50 in 2009.

Orange produce= 5 in 2009

$1.00*(5)+$1.50*(5)

=5+7.5

=$12.50

Real GDP

Cost of apple= $0.50 in 2002

Apple produced =5 in 2002

Cost of oranges= $1 in 2002

Orange produce= 5 in 2002

0.50*(5)+$1.00*(5)

=2.5+5

=$7.50

GDP deflator = Nominal GDP/Real GDP)

=$12.50/$7.50

=1.666

approximately 1.7

8 0
3 years ago
The Lincoln Company produces a wide range of furniture, such as cabinets, bookcases, and bureaus. It divides its consumer market
SashulF [63]

Lincoln company's strategy of dividing its consumer market will enables it to define customer needs and wants more precisely.

<h3>What is the strategy used by Lincoln company?</h3>

In marketing, this is known as segmentation which involves division of customers according to their segment such as age, needs, gender etc.

Here, as the firm has divided its consumer market into several groups that have similar interests in wooden furniture, this will allow them to define customer needs and wants more precisely.

Therefore, the Option B is correct.

Read more about segmentation

<em>brainly.com/question/7181203</em>

#SPJ1

4 0
2 years ago
Other questions:
  • A single-price monopoly can sell 2 units for $8.50 per unit. in order to sell 3 units, the price must be $8.00 per unit. the mar
    10·1 answer
  • Besides location and length what would you say marks the major difference between the hanseatic and venetian trade routes
    13·1 answer
  • Archie Co. purchased a framing machine for $45,000 on January 1, 2021. The machine is expected to have a four-year life, with a
    10·1 answer
  • A business owner who wants to make adjustments to her company's production would make use
    6·1 answer
  • You found your dream house. It will cost you $300000 and you will put down $30000 as a down payment. For the rest you get a 30-y
    11·1 answer
  • Planning to finance higher education helps people prepare for their financial future because it teaches them about
    10·2 answers
  • The resources owned by firms that shut down in the process of creative destruction:
    6·1 answer
  • Cost of Goods Sold Budget Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budge
    9·2 answers
  • Which factors can affect a stock's price? Check all that apply.
    9·2 answers
  • A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as bei
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!