User Account

All Pages

Calculate the equivalent unit cost for the product

Assignment Help Accounting Basics
Reference no: EM133188131

Question - Thirsty Ltd who manufacture orange juice use a process costing system. All direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout production. The information for April's activities is given below:

Work in process 1 April - 10,000 units

Direct material (100% complete)

$22,000

Conversion cost (20% complete)

$8,000

Balance of work in process, 1 April

$26,500


Units started during April

100,000 units

Units completed during April and
    transferred out to finished goods inventory

80,000 units

Work in process , 30 April:

Direct materials (100% complete)

Conversion (30 % complete)

Costs incurred during  April:

Direct material

$198,000

Conversion costs:

$158,400

Direct labour                        $52,800

Manufacturing overhead    $105,600

Total production costs incurred during April

$356,400

Required - Answer the following question using the weighted average method. Show all workings.

a) Show a summary of the total physical flow of units.

b) Calculate the equivalent units for the company.

c) Calculate the equivalent unit cost for the product.

d) Explain why under process costing, direct labour cost and conversion cost are added together?

Reference no: EM133188131

Questions Cloud

What is the impairment loss to be allocated to the equipment : Doc Company has also determined that the fair value less cost to sell of the building is P4,500,000. What is the impairment loss to be allocated to equipment
Why motivators are important for retaining millenials : Why motivators are important for retaining millenials? How can employers do to motivate millenials in hospitality industry?
Make a statement about some issue : Own sourced images to improve your theme. Any media sourced from the net should be licensed under Creative Commons license or available through public
Six-source model of influence : (1) Use the Six-Source Model of Influence to diagnose sources of influence and make recommendations to change his behavior. You must incorporate the Six-Source
Calculate the equivalent unit cost for the product : Thirsty Ltd who manufacture orange juice use a process costing system. Calculate the equivalent unit cost for the product
Integrated a csv strategy into generic strategy : Porter has proposed a concept of creating shared value (CSV), which connects competitive advantage and corporate social responsibility (CSR). Provide and evalua
Evaluate and prepare an ip strategy for the company : You are the new IP manager of a company that builds unmanned aerial vehicles (UAVs). The company, once very success?rl, is struggling to compete with its rivals
Target segments for a business : Explain why only using demographic and geographic segmentation variables would not be enough to truly understand each of the target segments for a business
What would you do with the remaining worth of raw materials : You purchased raw materials worth $5,000, but materials worth only $4,500 were used in manufacturing the pizzas sold in February. What would you do

Reviews

Write a Review

Accounting Basics Questions & Answers

  How many units of pens must emos have budgeted

Emos GmbH has prepared a Direct Labor Budget for December, How many units of pens must Emos have budgeted to produce during December

  Determining the amortization of premium

Assume the same set of facts for Ortega Company as in Problem 10-2A except that the market rate of interest of January 1, 2014, is 4% and the proceeds from the bond issuance equal $52,227.

  Prepare journal entries for the transactions in us dollars

1-Aug Sold 70 percent of invetory purchased June 1 for 40,000 lira on credit, Prepare journal entries for the following transactions in U.S. Dollars

  What account should the entity credit

Ann Watkins gives a nonprofit entity $55,000 in cash. What account should the entity credit when it receives Ann's gift until Ann's conditions are met

  Sales journal for sales credit

Do I just make an entry in the sales journal for sales credit of 8475 and cogs debit of 8475? Is there another entry I need to make?

  A company typically earns a contribution margin ratio of

a company typically earns a contribution margin ratio of 25and has current fixed costs of 80000. the general manageris

  Problem6-2a 3a 10 sep what is the total for units cost and

problem6-2a 3a 10 sep what is the total for units cost and units sold and the total cost of goods sold problem 6-2a 3b

  What would its eps be

A company has $100,000 in assets, 1000 shares outstanding and no debt. If EBIT is $20,000, the interest rate on debt is 10% and its tax rate is 40%, what is its EPS? If the firm in question 35 decided to refinance with 50% debt and 50% equity, wha..

  At what amount should corporation record the cost of land

A company has acquired a property that included both land and a building for $560,000. At what amount should the corporation record the cost of land

  Compute accrual-basis net income

Primo Industries also paid $72,661 for expenses in 2014. Of the amount paid, $30,711 was for expenses, Compute 2014 cash-basis net income

  Find the predetermined manufacturing overhead rate

Acme Fireworks uses a traditional overhead allocation based on direct labor hours. Compute the predetermined manufacturing overhead rate

  Reduce heavy strain on the button

When attaching a button on a man's overcoat, you can best reduce heavy strain on the button by reinforcing the button with

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd