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musickatia [10]
2 years ago
5

Haberdashery Company has a beginning Work-in-Process Inventory of 39,000 units (40% complete). During the period, 124,000 units

were started and the ending Work-in-Process Inventory consisted of 34,000 units (80% complete). What are the equivalent units for conversion costs using weighted-average process costing?
Business
1 answer:
klasskru [66]2 years ago
3 0

Answer:

156,200 equivalent units

Explanation:

Equivalent units are notional whole units which represent incomplete work and are used to apportion production costs between work in progress and finished work.

Equivalent Units = Degree of work done × units of inventory

There are two (2) methods to compute equivalent units

  1. First in First Out
  2. Weighted Average method

<em>Weighted average method</em>

Under this method, to account for completed units , no distinction is made between work started in previous period and those started this period. It is assumed that for all completed units, 100% of the work required was done in the current period.

We can work out the Equivalent units for Haberdashery Company as follows:

Items                                Units          Workings                 Equivalent units

Completed  units            129,000      100% × 129,000     =           129,000

Closing WIP                      34,000        80% ×   34000     =             27,200

Total equivalent units                                                                 156,200

<em>Note the completed units = opening inventory + newly introduced units - closing inventory </em>

Completed units= 39,000 + 124,000 - 34,000

                           = 129,000 units.

Equivalent units for conversion cost = 129,000 +27,200 = 156,200 units

                       

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A loaf of bread cost $0.18 in 1955 and the CPI was 26.8. The CPI in 2013 was 233.
luda_lava [24]

Answer:1.56

Explanation

(0.18÷26.8) *233= 1.56

4 0
3 years ago
The following information for the past year for the Blaine Corporation has been provided:Fixed costs:Manufacturing$ 125, 000$125
natima [27]

Answer:

D. 76.6 %

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

<em>First Calculate the Contribution</em>

Contribution = Sales - Variable Costs

                     = (60,000 units × $ 12.40) -  ($110,000+$30,000+$34,000)

                     = $744,000 - $174,000

                     = $570,000

<em>Then Calculate Contribution Margin Ratio</em>

Contribution Margin Ratio = $570,000 / $744,000 × 100

                                           = 76.61290

                                           = 76.6 % ( 1 decimal)

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3 years ago
The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.9 million in long-term debt, $770,000 in the common stock account
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Answer:

OCF = -$1,670,000

Explanation:

To calculate this, the following are first calculated:

Cash flow to creditors = Interest expense - (Long-term debt in 2009 - Long-term debt in 2008) = $230,000 – (3,500,000 – 2,900,000) = -$370,000

Cash flow to stockholders = Dividends paid – ((Common stock in 2009 + Additional paid-in surplus in 2009) - (Common stock in 2008 + Additional paid-in surplus in 2008)) = $550,000 – (($985,000 + $8,250,000) – ($770,000 + $6,000,000)) = -$1,915,000

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders = -$370,000 - $1,915,000 = $2,285,000

The the firm's 2009 operating cash flow, or OCF can now be calculated as follows:

Cash flow from assets = OCF - Net working capital investment  - Net capital spending

-$2,285,000 = OCF - (-$165,000) - $780,000

-$2,285,000 = OCF + $165,000 - $780,000

OCF = -$2,285,000 - $165,000 + $780,000 = -$1,670,000

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