Reference no: EM131118444
1. Hobart Beverage Company uses the weighted-average method in its process costing system. Materials are included at the start of the production process but conversion costs are uniformly applied throughout the production process.
The following data about the Packaging Department were taken from the company's accounting records:
- In 1 January 2016, there were 20,000 units in the work in process inventory that were 40% completed and 150,000 units in the finished goods inventory.
- The company sold 300,000 units during January.
- There were 32,000 units, which were 75% complete as to conversion costs, in the work in process inventory and 120,000 units in the finished goods inventory at the end of January.
- Cost data are summarized below:
|
WIP 1 January 2016
|
Cost per equivalent unit
|
|
Direct Materials
|
$ 34,900
|
Materials
|
$2.45
|
|
Conversion costs
|
$ 41,500
|
Conversion
|
$3.15
|
|
|
|
|
|
Required:
1. How many units were transferred from the Packaging Department to the Finished Goods Department during the month?
2. What were the equivalent units of production for direct materials and conversion costs for the month of January?
3. Compute the total costs incurred in January for (a) materials and (b) conversion.
4. Compute (a) the cost of WIP Inventory as of 31 January 2016 and (b) the cost of units completed and transferred out during the month.
5. What is the cost of goods sold by taking the unit cost data from the answers to requirement 3 above?
6. Assuming conversion cost consists 40% of labour costs and that manufacturing overhead cost is 60% fixed cost, calculate how many units ABC Company must sell to breakeven during January. Show all necessary formula and computations.
|
What is the impact of philosophy and history
: What is the impact of philosophy, history, litigation, or legislation on the understanding of learning disabilities (LD), its definition, identification practices, and prevalence? Use specific examples to illustrate your point.
|
|
Company uses the weighted-average method
: Hobart Beverage Company uses the weighted-average method in its process costing system. Materials are included at the start of the production process but conversion costs are uniformly applied throughout the production process.
|
|
Quality assurance tends to go out the window
: The moment a project is behind deadline, quality assurance tends to go out the window" (Alan Cox). Do you agree or disagree with this statement. List two challenges that project managers are likely to face while trying to balance between quality and ..
|
|
Comprehensive problem weighted-average method
: The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.
|
|
What were the equivalent units of production
: BBAC501 Assignment: How many units were transferred from the Packaging Department to the Finished Goods Department during the month - What were the equivalent units of production for direct materials and conversion costs for the month of January?
|
|
Evaluate abercrombie-fitch market situation
: In a two-page essay, evaluate Abercrombie & Fitch's market situation and the company's opportunities for growth. Be sure to discuss these factors in depth, citing sources to support your position. Your essay should include the following informatio..
|
|
Create a switch together with resettle your household
: Do people at any time include the requirement for a short see skilled mover? Have you ever experienced that unfortunate connection with experiencing to create a switch together with resettle your household upon shorter become aware of?
|
|
Draw the risk file and the cumulative risk profile
: The manager of Fort Motors is considering developing one of two proposed new car models, A and B. Draw the risk file and the cumulative risk profile for the selected strategy. What conclusion can you draw from looking at the profiles
|
|
Communication management problems
: What do you believe are the top four (4) communication management problems commonly associated with advertising and promotion? Be sure to prioritize and explain your selections. How would you approach solving the aforementioned management problems..
|