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]
2 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]2 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
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the N
Virty [35]

Answer:

1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets?

3,400 helmets x 064 kgs per helmet = 2,176 kgs

2. What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets?

2,176 kgs x $7 per kg = $15,232

3. What is the materials spending variance?

$15,484 - $15,232 = $252 unfavorable (because total expenditures on materials were higher than budgeted)

4. What is the materials price variance and the materials quantity variance?

materials price variance = [($15,484/2,346) - $7] x 2,346 = -$938 favorable (the purchase price per kg was lower than budgeted)

materials quantity variance = (2,346 - 2,176) x $7 = $1,190 unfavorable

4 0
2 years ago
Why is gdp an imperfect measurement of total production in the​ economy?
ra1l [238]
First of all, GDP does not include household production, production from the underground economy, intermadiate goods or intermediate servces. That is because we define GDP to be the total of all market values of all final goods and services in the country. Hence, the correct answer by the above definition cannot be d. The point of that definition is that household products cannot have a market value and that if we counted towards the GDP both the value of a Graphics Card and that of the PC, we would double count the value of the Graphics Card, thus overestimating the GDP. We see that the value of new houses are included in GDP since they need materials and services and they have a market value, so b is also excluded. Finally, we have shown that b is true but that this is a good thing and leads to a better estimate of total production; the correct answer is a. Here is an example. If there is an economy where in every house there is plenty of wood and people make wood dolls out of tradition, these dolls will not have a market value if they are kept by the people who made them. Nonetheless they are products too and everyone could just try to sell them the next day at a reasonable price; then, the GDP would get a bump out of nowhere, because it cannot account for household items or the underground economy.

8 0
3 years ago
​you consider the situation, roll up your sleeves, and get to work. what should be the first step you take in obtaining the info
Alina [70]
The first step would be: define the problem that needs to be solved.
Before we started colelcting information, we need to distinguish which type of information would be considered as 'relevant' and could aid us in achieving our goals. In climbing the Esports industry, this could involve most efficient way of training, nutrition necessary to icnrease gaming concentration, the strength of competitors, etc.
5 0
2 years ago
2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the econo
gladu [14]

Explanation:

I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.

Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.

4 0
3 years ago
Best Deals, Inc. has 10 units in ending merchandise inventory on December 31. The units were purchased in November for $160 each
MrMuchimi

Answer:

$1,600

Explanation:

Best deals incorporation has a total of 10 units in the ending merchandise inventory on December 31

The units were bought in the month of November at a price of $160 for each unit

The replacement cost of the item is $162

Inventory is always recorded when the cost is low

Therefore, the amount that is to be reported as the merchandise inventory can be calculated as follows

=10 units × $160

= $1,600

Hence the amount reported as the merchandise inventory on the balance sheet is $1,600

4 0
3 years ago
Other questions:
  • What are the three most critical components that a marketer needs to examine to segment a market effectively?
    14·1 answer
  • The current one-year T-bill rate is .33 percent and the expected one-year rate 12 months from now is 1.30 percent. According to
    14·1 answer
  • When Palm, Inc. acquired its 100% investment in Star Co., a foreign entity, the excess of cost over book value was 10,000 FC. Th
    15·1 answer
  • Jim receives the following information on his project: PV = 1000, EV = 1200, AC = 800, BAC = 2000, EAC = 1333. How is the projec
    11·1 answer
  • Formaggio Vecchio announced its regular quarterly cash dividend of $0.20 per share. Currently there are one million shares outst
    11·1 answer
  • consider in the market for fire extinguishers that there is an external benefit of $10 per extinguisher. What type of externalit
    8·1 answer
  • Cutter Enterprises purchased equipment for $54,000 on January 1, 2021. The equipment is expected to have a five-year life and a
    15·1 answer
  • HELP PLEASE
    10·2 answers
  • Most economists believe the principle of monetary neutrality is a. relevant to both the short and long run. b. mostly relevant t
    6·1 answer
  • Make a list of profession and identify their levels​
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!