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Step2247 [10]
3 years ago
9

The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. How many unit

s are in ending work in process inventory in the first processing department at the end of the month?
Business
1 answer:
Troyanec [42]3 years ago
3 0

Answer:

Equivalent units:

Direct Materials: 85

Conversion Costs: 75

Explanation:

Hey there!

You must calculate equivalent units. Let's assume we have no opening inventory and that we start the porduction of 100 units. Also no units are completed in this period.

                                    Equivalent Units  

                                           Physical             Direct           Conversion

                                                     Units                   Materials         Costs

Work in process, beginning          0  

Started during current period 100  

To account for                         100  

Work in process, ending         100  

(100 × 85% respect to materials;

100 × 75% respecto to conversion costs)            85                     75

Equivalent units of work done in current period    85              75

Because 75% of conversion costs incurred on 100 incomplete units could have been incurred to make 75 (0.75 x 100) complete units by the end of the month. That is, if all the conversion-cost input in the 100 units in inventory had been used to make completed output units, the company would have produced 75 completed units (also called equivalent units) of output.

The same reasoning can be done using direct materials.

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On January 1, 2020, the balance sheet of Naperville Company (a sole proprietorship) was as follows.
guapka [62]

Answer:

Explanation:

From the information povided:

(a) To compute the amount of goodwill paid by Chicago Corporation

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Accounts Receivable                           100000

Inventory                                               170000

Plant & Equipment                               400000

Land                                                        90000

Customer List                                            4000

Trade Names                                          <u> 16000</u>

     NET ASSETS  (A)                             <u>780000</u>

<u />

Current liabilities                                     76000

Non-current liabilities                            <u>160000 </u>

      NET LIABILITIES (B)                        <u> 236000</u>

∴

PURCHASE  CONSIDERATION (A -B)   544000

<u>Less:</u>  Cash Paid                                    <u>  580000</u>

          GODWILL                                    <u>    36000 </u>

<u />

b)

In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.

Account Name                                       Dr.                      Cr.

Accounts Receivable A/C                  100000

Inventory A/C                                       170000

Plant Equipment  A/C                          400000

Land A/C                                                 90000

Customer List A/C                                    4000

Trade Names A/C                                   16000

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Non-Current Liabilities A/C                                             160000

Cash A/C                                                                          580000

c)

The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.

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Answer:

Vaughn Company

The weighted-average cost per unit is

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Explanation:

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Inventory, January 1 11,000    $8.80     $96,800

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November 8             4,000      6.00       24,000

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hope that helped 
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