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anastassius [24]

2 years ago

5

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricat

ing Department: Units: Beginning Inventory: 92,000 units, 80% complete as to materials and 25% complete as to conversion. Units started and completed: 262,000. Units completed and transferred out: 354,000. Ending Inventory: 36,000 units, 30% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $49,200. Costs in beginning Work in Process - Conversion: $91,700. Costs incurred in October - Direct Materials: $744,600. Costs incurred in October - Conversion: $1,100,620. Calculate the cost per equivalent unit of conversion.

2 answers:

GalinKa [24]2 years ago

4 0

Answer:

The cost per equivalent unit of conversion is $2.56

Explanation:

Beginning inventory = 92,000 units

Units started and completed = 262,000 units

Units completed and transferred out: 354,000 units

Ending Inventory: 36,000 units

Equivalent unit of materials = (92,000 × 20%) + 262,000 + (36,000 × 30%)

= 291,200 units

Direct materials = $744,600

Cost per equivalent unit of materials = Direct materials ÷ Equivalent unit of materials

=$744,600 ÷ 291,200 = $2.56

Hatshy [7]2 years ago

4 0

Answer:

Cost per unit of conversion cos= $3.56 per unit

Explanation:

Cost per unit of conversion cost = Total cost/ total equivalent unit

Item Units Equivalent unit

Opening inventory 92,000 75% ×92,000 = 69000

Fully worked 262,000 100% × 262,000 = 262000

Closing inventory 36,000 10%× 36,000 = <u>3600 </u>

Total equivalent unit <u>334,600</u>

Cost per unit of conversion cost = Total cost/ total equivalent unit

= (91,700 + 1,100,620 )/ 334,600 units

= $3.56 per unit

Note also at that the degree of completion for opening inventory is the simply the balance of work remaining to be done.

For example, for materials, 25% of work has been done on the opening inventory in the last period, hence the balance of 75% would be done this period

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3 years ago

The dollar amount that provides for covering fixed costs and then provides for operating income is called? ________.

algol13

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8 0

3 years ago

You currently drive 250 miles per week in a car that gets 24 miles per gallon of gas. You are considering buying a new fuel-eff

olga_2 [115]

Answer:

It is less expensive to keep your old car.

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$\text{Total cost of using old car for 5 years}=\$18979.155$

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$\text{Insurance premium for new car for 5 years}=\$4,000$

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Since the cost of using new car for 5 years is greater than cost of using old car for 5 years, therefore, it is less expensive to keep your old car.

7 0

3 years ago

Read 2 more answers

Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was appro

Katen [24]

Answer:

bond's selling price is $6154

Explanation:

given data

face value = $5,000

interest = 8 % of face value

rate = 6.5 %

to find out

bond's selling price

solution

we find interest that is

interest = 8 % of face value

interest = 8 % × 5000

interest = 400

so we consider bond selling price is x

so

bond selling equation will be

interest = rate × bond selling price

400 = 0.065 × x

x = 6154

so bond's selling price is $6154

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2 years ago