User Account

All Pages

Determine the cost of EWIP and the cost of the goods

Assignment Help Accounting Basics
Reference no: EM132714358

Question - Weighted Average Method, Unit Cost, Valuing Inventories

Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method:

Units completed 53,400

Units in EWIP X Fraction complete (36,000 X 60%) 21,600

Equivalent units of output 75,000

June's costs to account for are as follows:

BWIP (10,000 units, 80% complete) $50,000

Materials 90,000

Conversion costs 34,000

Total $174,000

Required -

1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent.

2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round your answers to the nearest dollar.

3. Cassien had just finished implementing a series of measures designed to reduce the unit cost to $2.00 and was assured that this had been achieved and should be realized for June's production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?

Reference no: EM132714358

Questions Cloud

Find which of the performance measures would be classified : Find Which of the performance measures would be classified as a lag indicator for a coachline company whose objective was to improve profitability?
What is the annualized percentage : What is the annualized percentage all- in cost in euros of this method of trade financing?
Calculate the average daily float : The Lawrence Stone-Age Pottery Co. receives 50 cheques per month from customers. Average payments and clearing times are as follows: five cheques
Describe the ethical conflict that john is facing : John is a manager of the sales department of Conad company, Describe ethical conflict that John is facing when asked to provide estimated sales for next year?
Determine the cost of EWIP and the cost of the goods : Determine the cost of EWIP and the cost of the goods transferred out. If required, round your answers to the nearest dollar
Examine a national healthcare issue : In this Discussion, you examine a national healthcare issue and consider how that issue may impact your work setting. You also analyze how your organization.
Appropriate cost for retained earnings : What is the appropriate cost for retained earnings in determining the firm's cost of capital?
Calculate value of a three-month european put option : It is known that at the end of three months it will be either $50 or $35. The risk-free interest rate is 6% per annum with continuous compounding.
Calculate the manufacturing overhead to be allocated : Calculate the manufacturing overhead to be allocated based on direct labor cost to job 371. What is the total cost of Job 371

Reviews

Write a Review

Accounting Basics Questions & Answers

  A firm borrows 12000 from the bank at 8 per annum

1. a firm borrows 12000 from the bank at 8 per annum compounded semi annually. if no repay merits are made how much is

  Why is an engagement time budget so important

Do you need the client's permission to call the estate's attorney? Would you call the estate's attorn against the Executive Director's wishes?

  Journal entries to record the store transactions

Make summary journal entries to record the store's transactions for the year ended January 31, 2012. Best Way uses a perpetual inventory system.

  The presentation of current and non-current liabilities

The presentation of current and non-current liabilities in the statement of financial position (balance sheet):(a) Is shown only on GAAP financial statements.

  Record the closing entries in general journal form

All the accounts have their normal debit and credit balances. Record the closing entries in general journal form

  The higgins company has just purchased a piece of equipment

the higgins company has just purchased a piece of equipment at a cost of 120000. this equipment will reduce operating

  Problem regarding write off

A few days before the move, Philip hired a friend to organize his belongings, throwing out stuff that he did not need anymore and also packing some of his belongings in his closet. Philip paid her $7,000.

  The idea of the necessity of cost allocation has been

the idea of the necessity of cost allocation has been argued both pro and con very convincingly. some experts assert

  Calculate direct material quantity variance for given time

Calculate the direct material quantity variance for June. If the variance is favorable, enter an F after your number with a space between the number.

  What amount should be reported as allowance

Allowance for Doubtful Accounts - January 1 200,000. What amount should be reported as allowance for doubtful accounts on December 31

  How does this doctrine act as an exception to the elements

research the doctrine of promissory estoppel online. use an actual case to help you discuss the following questions

  Why was codification needed

In the Course Home tab of your course shell, click on "FASB Codification Access." At the American Accounting Association login page enter your username.

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