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MaRussiya [10]
3 years ago
9

Colil Computer​ Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the produc

tion process. During​ January, the accounting department noted that there was no beginning inventory. Direct materials of $ 300 comma 000 were used in production during the month. Workminusinminusprocess records revealed that 12 comma 500 card units were started in​ January, 6 comma 250 card units were​ complete, and 4 comma 000 card units were spoiled as expected. Ending workminusinminusprocess card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete. What is the direct material cost assigned to good units​ completed? A. $ 258 comma 621 B. $ 150 comma 000 C. $ 96 comma 000 D. $ 246 comma 000
Business
1 answer:
Natasha2012 [34]3 years ago
7 0

Answer:

D. $246,000

Explanation:

As per the given question the solution of direct material cost assigned to good units​ completed is provided below:-

To reach Cost transferred out we need to follow some steps which is following below:-

Step 1. Cost per unit = cost of material used ÷ Units started

= $300,000 ÷ 12,500

= $24

Now,

Step 2. Goods units completed = Started units × Cost per unit

= 6,250 × $24

= $150,000

Step 3. Normal spoilage = Cards units × Cost per unit

= 4,000 × $24

= $96,000

and finally

Cost transferred out = Goods units completed + Normal spoilage

= $150,000 + $96,000

= $246,000

To reach allocation of Cost transferred out we simply put the values into formula.

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3 years ago
Trevor Company expects sales of Product W to be 60,000 units in April, 75,000 units in May, and 70,000 units in June. The compan
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Answer:

65000 units

Explanation:

Given:

Expected sales of product W in April  = 60000 units

Expected sales of product W in May  = 75000 units

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Inventory in hand at the end of each month = 40% of the next month's expected sale

Inventory expected at the end of the April = 40% of the expected sales in May

or

Inventory expected at the end of the April = 0.4 × 75000 = 30000 units

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the units required to be produced in April = 90000 - 25000 = 65000 units

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3 years ago
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Option B. Implement process innovations that lower per unit costs

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