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SashulF [63]
3 years ago
8

Atlantic Manufacturing Company uses process costing. All materials are added at the beginning of the process. The normal spoilag

e rate is calculated as 10% of good units completed.The cost of the beginning work-in-process in the Month of May is $3,000,000, including$1,600,000 of input of materials, 100,000 units, and $1,400,000 for conversion costs. The beginning work-in-process is 70% complete.During May, the input includes $7,400,000 for materials, 800,000 units started and $4,190,000 for conversion costs. There were 700,000 good units finished. In addition, the ending work-in- process in May is 100,000 units with 60% complete. The abnormal spoilage is 30,000 units. All spoilage occurred when all processing was complete, at the final inspection.Required: Use the weighted-average method to calculate:(a) The dollar value of abnormal spoilage.(b) The cost of the good units finished.(c) The cost of ending work-in-process inventory.
Business
1 answer:
zavuch27 [327]3 years ago
3 0

Answer:

(a) The dollar value of abnormal spoilage.

$499,317.

(b) The cost of the good units finished.

$12,669,193.

(c) The cost of ending work-in-process inventory

$1,421,491.

The complete solution of the problem is attached with an excel spreadsheet.

Download xls
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Answer:

November 17, 2021

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Accounts Payable $45,600 (credit)

November 26, 2021

Accounts Payable $45,600 (credit)

Discount Received $1,824 (credit)

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December 15, 2021

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Explanation:

November 17, 2021

Merchandise : air conditioners $45,600 (debit)

Accounts Payable $45,600 (credit)

Recognize the Merchandise and Accounts payable at the Purchase Price less trade discount. 190 units × $300 × 80% = $45,600

November 26, 2021

Accounts Payable $45,600 (credit)

Discount Received $1,824 (credit)

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Payment is made within the discount period of 10 days and thus Thomas Company is eligible for a cash discount of 4%. Thomas Company will pay the amount owing less the 4% cash discount. $45,600 × 96% = $43,776.

December 15, 2021

Accounts Payable $45,600 (credit)

Cash $45,600 (credit)

Payment is made out of the discount period of 10 days and thus Thomas Company is  not eligible for the cash discount. Thomas Company will pay the full amount owing of $45,600.

3 0
3 years ago
What type of life insurance has cash value
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7 0
3 years ago
Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: The bank owes Sam $100 per y
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Answer:

X=97.24

Explanation:

PV = Present Value = X+2000 by the 16th years

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FV = Future Value = 2000 at the end of 16 years

n= number of years

Applying the equation of future value for annuity

FV = pmt* ​((1+r)ⁿ - 1   )/r

Inputting the values;

2000=100*((1+r)¹⁶-1)/r

Solving for r, gives r = 2.9%

Therefore using the formula for PV for annuity;

PV=PMT*(1-(1/1+r)/r)

X=100*(1-(1/1.029)/0.029

X=100*((1-0.9718)/0.029)

X=100*(0.0282/0.029)

X=97.24

4 0
3 years ago
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati
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Answer:

The answer is $243,000

Explanation:

The inventory on July 8 immediately prior to the fire is the CLOSING INVENTORY.

To find this closing inventory, we need to find the gross profit first and then cost of sales.

To find gross profit:

Gross profit margin=gross profit ÷sales.

Gross profit margin is 20% or 0.2

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Therefore, gross profit is:

0.2 x $690,000

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To find cost of sales:

Gross profit = sales - cost of sales.

Gross profit is $138,000

Sales is $690,000

Therefore, cost of sales is

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And finally to get closing inventory:

Cost of sales = opening inventory + purchases - closing inventory.

Cost of sales = $552,000

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Closing inventory = $140,000+$655,000-$552,000

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6 0
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Answer:

Extortion

Explanation:

Extortion is the act of threatening or forcing another party to give you something, most of the time money.

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The threat the minister is using against the company is to not approve Thier contract.

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