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Svetlanka [38]
2 years ago
10

Nelson Industries makes widgets using a two-step process that involves machining first and assembly second. In the Machining Dep

artment, all materials are issued at the beginning of the process and conversion costs are incurred uniformly throughout the process. During the period, the Machining Department transferred out 8,600 widgets and had an ending inventory of 4,000 widgets that were 85% complete. Beginning inventory consisted of 6,000 units that were 35% complete. What are the equivalent units of production for materials in the Machining Department? A. 3,400 widgets B. 12,000 widgets C. 6,600 widgets D. 12,600 widgets
Business
1 answer:
Shtirlitz [24]2 years ago
4 0

Answer:

The answer is: D

Explanation:

At the end of the financial year, manufacturing companies have to assign costs to the goods which they produced in that period. At year end, the production does not stop, therefore, there could be items still in production at reporting date. In order to give as accurate information as possible, the company has to cost the production items with an estimate of the total items produced. Equivalent units of production refer to the summation of items that have been started and completed during the reporting period and the items still undergoing production at their estimated stage of completion. This provides an approximation of the total units of production, had the incomplete items been counted as complete at their estimated stage of completion.

Example: if 3,000 units were started and completed during the period and 2,000 units were in closing inventory at 60% completion, then the total equivalent units of production would be equal to 4,200 units (3,000 + (2,000*60)).

Using the First in First Out Method:

Equivalent units of Production =  Total units completed during the period + Units in Ending WIP

Note1: the question indicates the equivalent units of production for the <u>materials</u> in the Machining Department.

Materials are introduced at the beginning of the production process, making them 100% complete at the end of the period. Equivalent units of production for materials is therefore 12,600(8,600+4000)

Note2: 8,600 from the above calculation consists of:

Opening balance of 6,000 units at 100% completion - Materials

Started and completed during the period 2,600 units -Materials

4,000 units in the closing balance are 100% complete in terms of Materials

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The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses
Reika [66]

Answer: Please see explanation column for answers

Explanation: Given Revenue and expenses

Accounts payable $2,000     Miscellaneous expense $1,030, Accounts receivable 10,340        Office expense 1,240

  Cash 21,420,                       Wagesexpense 23,550                       Supplies 1,670  Land 47,000,  Building 157,630,  Dividends 16,570, Fees earned 73,450    

a. income statement for the current year ended March 31.

Fees earned = Revenue

Fees earned                                              73, 450

Expenses Incurred

Wages expense                     -$23,550      

Miscellaneous expense       -  $1,030

Office expense                        -$1,240

Total Expenses                                             25,820

Net income                                                   $47,630

Working : Net income = fees earned ( Revenue )- Total expenses =

$73,450 - $25,820 = $47,630

2.statement of retained earnings for the current year ended March 31.

Retained earning  at April 1ST               $60,000

Net income                                                  $47,630

Dividend                                                       $16,570

Retained earnings                                        $91,060

Working

Retained earning = Retained earning from april 1st + Net income -- Dividend

$60,000 + $47,630) - $16,570 = $91,060

3.

A balance sheet is a company's financial statement that shows its assets, liabilities and shareholders' equity to illustrate  the financial position of the company showing what the company has as its assets, n  is owing , and  the amount  liable to shareholders.at a particular  time. In a balance sheet,  Assets  must equal Liabilities and Shareholders’ Equity..

Balance sheet for Thompson's Computer Service.

Current assets

Cash                                                        $21,420

Account receivables                               $10,340  

Supplies                                                    $1,670

Total current assets $33,430

Property land and equipment

Land                                                           $47,000

Building                                                    $ 157,630

Total Property land and equipment       $204,630

Total assets                                               $238,060                                    

Liabilities and equity

Accounts payable                                              $2,000      

Stock holder's equity    

Common stock                                                 $145,000

Retained earnings                                             $91,060

Stock holder's equity                                      $236,000

Total Stock holder's equity and Liabilities      $ 238,060

we can see in the balance sheet that Stock holder's equity and Liabilities = Total Assets

4 0
3 years ago
Which one of the following statements regarding disclosure is true?
dybincka [34]

Answer:

4

Explanation:

The death on property must be disclosed to buyers by stateagents or owners if the death has occurred within last three years but the manner of death is not requried to be disclosed unless asked by the buyer.

5 0
3 years ago
Leisure Industries manufactures​ custom-designed playground equipment for schools and city parks. Leisure expected to incur $ 62
inn [45]

Answer:

Price= $85263,6

Explanation:

We need to calculate the price paid by the City of Hamptonville for playground equipment.

We know the following information:

Direct material= $13000

Direct labor= 160hours*$22hour= $3520

Manufacturing overhead: it is assigned on labor hours.

We need to calculate the value of manufacturing overhead.

Labor hours presupuested= $41800/$22hour= 1900hours

$/hour of manufacturing overhead= $627000/1900hours= $330

<u>Manufacturing overhead Job 309= 330*160hours= $52800</u>

Manufacturing cost Job 309= direct material + direct labor + Manufacturing overhead= 13000 + 3520 + 52800= $69320

Price=69320*1.23= $85263,6

6 0
3 years ago
an organization founded by businesses in a specific in a specific industry for the purpose of collaborating within the industry
olga nikolaevna [1]
The answer to the question that is being presented aboev would be an association. An organization founded by businesses in a specific industry for the purpose of collaborating within the industry and advocating for theirworkers is called an association. 
6 0
2 years ago
You are planning your retirement in 10 years. You currently have $169,000 in a bond account and $609,000 in a stock account. You
Over [174]

Answer:

$187,584.20

Explanation:

Firstly, we need to calculate the total future value (FV) of the bond account and stock account after 10 year from now (when you come to retirement age):

FV_bond at retirement = 169,000 x (1 + 7.25%)^10 + 7,100 x (1 + 7.25%)^9 + 7,100 x (1 + 7.25%)^8 + … 7,100 x (1 + 7.25%)^0 = 426,230.93

FV_stock at retirement = 609,000 x (1 + 10.75%)^10 = 1,690,653.63

Total FV of your investment portfolio = 2,116,884.57

Because you plan to use up all the funds in your account after 21 equal amount withdrawals after retirement, total present value <em>(at the time you retire not now)</em> of these withdrawals <em>(discounted at 6.5%)</em> have to be equal to the value of your invesment 10 years from now, or:

2,116,884.57 = C/(1+6.5%) + C/(1+6.5%)^2 + … + C/(1+6.5%)^21, with C is the amount you plan to withdraw each year.

Solve the equation we get C = 187,584.20

<em>Note: The equation can be solved easily using Excel or BAII Plus.</em><em> </em>

5 0
3 years ago
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