1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Travka [436]
3 years ago
11

Adam Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materi

als and conversion costs. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for February 2012 are:Work in process, beginning inventory, 200 units.Units started during February 600 unitsWork in process, ending inventory, 100 units30% complete as to conversion costs100% complete as to materialsCosts:Work in process, beginning inventory:Direct materials $200,000Conversion costs $200,000Direct materials costs added during February $2,000,000Conversion costs added during February $2,500,000What is the cost assigned to Ending WIP (Ending Inventory) in February?a. $393,162.50b. $4,900,000c. $385,958.90d. None of the above
Business
1 answer:
inysia [295]3 years ago
5 0

Answer:

c. $385,958.90

Explanation:

<em>Step 1 Determine the Total Cost Incurred for Both materials and Conversion </em>

<em>Raw Materials</em>

Opening Work In Process                  $200,000

Add Cost Added during the year    $2,000,000

Total                                                   $2,200,000

<em>Conversion</em>

Opening Work In Process                  $200,000

Add Cost Added during the year    $2,500,000

Total                                                   $2,700,000

<em>Step 2 Determine the total equivalent units for materials and conversion</em>

<em>Materials </em>

Closing work in process 100 × 100%                         = 100

Completed and Transferred (600+200-100)×100% =700

Total                                                                            =800

<em>Conversion </em>

Closing work in process 100 × 30%                          =  30

Completed and Transferred (600+200-100)×100% =700

Total                                                                            =730

<em>Step 3 Determine equivalent cost per unit of materials and conversion costs</em>

Materials = $2,200,000/800 = $2,750

Conversion = $2,700,000/730 = $3,699

<em>Step 4 Determine the cost assigned to Ending WIP</em>

Materials  ($2,750×100)           = $275,000

Conversion Cost ($3,699×30) = $110,970

Total                                           =$385970

You might be interested in
Athena Company provides employee health insurance that costs $14,500 per month. In addition, the company contributes an amount e
erik [133]

Answer:

Explanation:

130500

3 0
3 years ago
The production possibilities frontier provides an illustration of the principle that a. people respond to incentives. b. trade c
Mekhanik [1.2K]

Answer:

d. people face trade-offs.

Explanation:

The production possibility frontier shows all the combinations of two goods an economy can produce when all its resocurces are fully employed.

At one extreme of the curve, the highest possible amount of one good is produced while zero quantity of the second good is produced . To produce more quantity of the second good, one has to produce less quantity of the first good. This illustrates trade off.

I hope my answer helps you

7 0
3 years ago
An effective team would never have ______. a. Multiple long term goals b. A series of coordinated deadlines c. Unclear definitio
DedPeter [7]
C. Unclear definitions of goals

Any professional and efficient team will of course want clear definitions of their goals to run well.
7 0
3 years ago
Read 2 more answers
Enok, a prospective franchise owner, is looking to keep his monthly costs as low as possible. The franchisor he is checking out
slamgirl [31]

Answer:

Option (3) is correct.

Explanation:

Given that,

Enok, a prospective franchise owner,

Royalty payments = 8 percent of sales could be as high as $300,000 per month

Therefore, the franchiser is claiming that a franchisee can expect monthly sales to be as high as:

= $300,000 × (100 ÷ 8)

= $300,000 × 12.5

= $3,750,000

Option (3) is correct.

4 0
3 years ago
A European-based company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to country m
Leviafan [203]

Answer:

E

Explanation:

has no interest in whether the euro grows stronger or weaker versus the Brazilian real unless its chief competitors are other companies located in countries whose currency is also the euro.

3 0
3 years ago
Other questions:
  • ABC Inc. just paid a dividend of $1.00 this year. The stock price is $15.43 currently. The market risk premium is 15% and the ri
    11·1 answer
  • A higher interest rate (discount rate) would:________
    8·1 answer
  • Don Wyatt is unable to reconcile the bank balance at January 31. Don Wyatt’s reconciliation is as follows. Cash balance per bank
    11·2 answers
  • Frederick is a student at Central Fictional State University (CFSU), and he has a great idea for a new business invention. Frede
    11·1 answer
  • Which two actions should you take during an informational interview? Tell the interviewer that you would be willing to take any
    5·2 answers
  • Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year inc
    11·1 answer
  • Skolits Corp. issued 15-year bonds 2 years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bon
    8·1 answer
  • Gundy Company expects to produce 1,213,200 units of Product XX in 2020. Monthly production is expected to range from 80,000 to 1
    8·1 answer
  • Are capital markets also organisational markets?​
    9·1 answer
  • A sum of $6,500 deposited in an account grows to $8,000 in 9 years. Assuming annual compounding, what interest rate is being pai
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!