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3 years ago

The Cutting Department of Sheridan Company has the following production and cost data for July.

Business

1 answer:

alina1380 [7]3 years ago

5 0

Answer:

1. Materials Conversion Costs

Total equivalent units of production 17,200 15,800

2. Cost per Equivalent Unit $ 4.05 $ 2.6

Explanation:

Cutting Department

Weighted-Average Method

1. Equivalent Units

Particulars Units % of Completion Equivalent Units

Materials Conversion Materials Conversion

Transferred Out 13,700 100 100 13,700 13,700

<u>Ending Inventory 3500 100 60 3500 2100 </u>

<u>Total Equivalent Units 17,200 15,800 </u>

<em>The Ending Inventory units are 3500 which are not yet complete. </em>

Materials Conversion Costs

Total equivalent units of production 17,200 15,800

2. Cost Per Equivalent Units

Materials Conversion

Cost Added 69,660 18,480 + 22,600

Total Costs 69,660 41,080

Equivalent Units <u> 17,200 15,800 </u>

Cost per Equivalent Unit 69,660 / 17,200 41,080/ 15,800

$ 4.05 $ 2.6

Cost of Ending Work In Process $ 19635

Materials = 3500 * $ 4.05= $ 14175

Conversion = 2100 * $ 2.6= $ 5460

We multiply the equivalent number of units with the cost per unit to find the cost.

Cost Of Units Transferred Out = $ 91,105

Materials = 13,700 * $ 4.05= $ 55,485

Conversion = 13,700 * $ 2.6 = $ 35620

B. A Cost Reconciliation Report

Materials Conversion

Ending WIP $ 14175 $ 5460

<u>Transferred Out $ 55,485 $ 35620</u>

<u />

<u>Total $ 69660 41080 </u>

These calculated costs reconcile with the costs given in the above data.

Materials Conversion

<u>Cost Added 69,660 18,480 + 22,600</u>

<u>Total Costs 69,660 41,080</u>

<u></u>

These costs reconcile with the given costs.

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Answer:

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Explanation:

<h2>Machine A</h2>

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3 years ago

Which of the following is not considered a legitimate expense of a partnership? a Interest paid to partners based on the amount

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Answer:

a Interest paid to partners based on the amount of invested capital.

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A partnership is formed between two parties that agree to go into a venture for mutual gain. The parties share ownership of the business entity and as such are entitled to profit from their equity holdings.

Interest paid based on invested capital is considered a distribution of profit by the business and not an expense. This is similar to sharing profit to shareholders in a company.

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The following data were taken from the records of Menendez Company:

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