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vaieri [72.5K]
3 years ago
5

Blanche Corporation adds materials at the end of the process in the injection department, which is the second of two stages of i

ts production cycle. Information concerning the materials used in the forming department in April follows: Units Materials CostsWork in process at March 1 30,000 $60,000Units transferred from previous department during March 125,000 $360,000Units completed and transferred to next department during March 120,000Using the average cost method, what is the material cost of the work in process at March 31 (rounded to the nearest dollar)?a. $108,000b. $126,000c. $120,000d. $0
Business
1 answer:
inn [45]3 years ago
3 0

Answer:

The material cost of the work in process at March 31 is d. $0

Explanation:

Note: Equivalent unit of Work in process of Material is 0 as material are added at the end of process which leads to total cost of material of work in proccess = 0.

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c. 1.14

Explanation:

Year         Cash Flow    PV Factor 10%     PV of Cash flows

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Year 2             120,000         0.826                       99,120

Year 3             100,000         0.751                       75,100

Year 4               90,000         0.683                       61,470

Year 5               90,000         0.621                       55,890

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So, we can calculate the present value index by using following formula,

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