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Svetlanka [38]
3 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]3 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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Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Carpet wrote do
Taya2010 [7]

Answer:

C) The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.

Explanation:

From the case it is clear that the contract happens between Beau and the Manager of XYZ is of selling the carpet only. The service on the other hand, is not a department of UCC. The service contracts are department of common law whereas sales of goods law is applied to UCC or Uniform Commercial Code. So, except this option, all other options are false.

5 0
3 years ago
If the Administrator were examining the actions of a particular agent to determine whether the agent engaged in churning a clien
Elena L [17]

Answer:

C) the client's objectives, financial resources, and the character of the account

Explanation:

While at the time of examining the actions of a specific agent by the administrator with respect to the commission earned would be depended upon the objective of the client, his financial resources,and the character of the account.

The character of the account represents the type of account in which the client is interest as different accounts have different commissions

So these three above objectives should be required

Hence, the option c is correct

7 0
3 years ago
Analyze Johnson Stores’ staffing budget for holidaysJohnson Stores is planning its staffing for the upcoming holiday season. Fro
salantis [7]

Answer:

Johnson Stores

Staffing Budget for Holidays:

a. The amount to budget for additional sales clerks for the holiday season is:

= $24,192.

b. The additional profit generated if a staff is added for the increased sale is:

= $1,209.60.

Explanation:

a) Data and Analysis:

Number of sales clerk required for each $12,000 in daily sales = 1

Average sales increase = $96,000

Number of sales clerk required for the $96,000 sales increase = 8 ($96,000/$12,000)

Number of shopping days from Black Friday to Christmas Eve = 27

Sales clerk works a shift per day = 8 hours

Wages per hour = $14

Total hours to be worked by the additional sales clerk = 8 * 27 * 8 = 1,728

Total wages = 1,728 * $14 = $24,192

Average gross profit on sales = 40%

Total gross profit on sales = $24,192 * 40% = $9,676.80

Additional gross profit generated by adding a staff = $1,209.60 ($9,676.80/8)

6 0
3 years ago
​a man borrows money from an automobile dealership to pay for a car. if he fails to repay the loan, the dealership will take pos
Setler [38]

Select one:

a. ​creditor, collateral, borrower

b. ​borrower, creditor, collateral

c. ​credit union, loan, creditor

d. ​loan, collateral, creditor

Answer: a - creditor, collateral, borrower.

The automobile dealership loans money to the man to buy a car. So, the automobile dealership is the creditor.

Collateral refers to anything that may be pledged in return for money, with the condition that the pledged item will be forfeited if the money is not repaid. Since the dealership will take possession of the car if the man fails to repay the money, it is a collateral.

The man who bought the car, owes money to the automobile dealership as he bought the car on a loan. So, he is a borrower.

7 0
3 years ago
Read 2 more answers
Lexis Company purchased equipment on January 1, 2012 for $35,500. The estimated useful life of the equipment was 7 years and the
Naddik [55]

Answer:

The depreciation expense for 2015 is $2,000

Explanation:

The computation of the depreciation expense is shown below:

= (Original cost - residual value) ÷ useful life

= ($35,500 - $4,000) ÷ 7 years

= 4,500

The depreciation for three years would be

= 4,500 × 3 years

= $13,500

The remaining amount would be

= $35,500 - $13,500

= $22,000

So, the depreciation expense for 2015 would be

= ($22,000 - $4,000) ÷ 9 years

= 2,000

7 0
3 years ago
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