9. Which of the following companies is most likely to use A) Crimpson Color, a c
ID: 2577648 • Letter: 9
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9. Which of the following companies is most likely to use A) Crimpson Color, a company selling customized garments for niche customers B) Effel & Associates, a consulting firm providing various audit and related servi CDental Bright Inc., a company manufacturing and selling toothpaste on a large scale ces Grimpy Corp,, a company manufacturing fumiture for customers as per their r Use the following information for questions 10 through 16. I-style hats. Material is introduced at the beginning of the process in the Top That manufactures Cutting Department. Conversion costs are incurred (and allocated) uniformly throughout the process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Data t the Cutting Department for the month of February 2009 follow: Work-in-process, January 31-50,000 units 100 percent complete for direct materials; 40 percent completed for conversion costs actual costs of direct materials, $70,500; actual costs of conversion, S34,050 Units started during February Units completed during February Work-in-process, February 28 225,000 200,000 75,000 units 100 percent complete for direct materials; 20 percent completed for conversion costs Direct materials added during February factual costs $342,000 Conversion costs added during February factual costs) $352,950 Assuming Top That uses the weighted-average method to account for inventories, the equivalent units of work for the month of February are 10 10. rial a. 225,000 b. 200,000 c. 275,000 d. 225,000 225,000 200,000 215,000 200,000 Assuming Top That used the weighted-average method to account for inventories, the cost per equivalent whole unit produced during February is a. $3.30. b. $3.55 c. $3.77 d. $4.00 12. Assuming Top That uses the weighted-average method to account for inventories, costs to work-in-process at the end of February is a. $300,000 b. $266,250 c $166,525. d. $139,500 12.Explanation / Answer
10. Option C
Direct material=275,000
Conversion=215,000
Explanation
Equivalent unit:
=Units completed and transferred out+units in ending inventory
Direct material:200,000+75,000=275,000
Conversion: 200,000+(20%×75,000)=215,000
11. Option a is correct=$3.30Explanation:
Cost per Equivalent unit:
=( Cost incurred in beginning inventory+cost added during period)/equivalent units
Direct material:($70,500+$342,000)/275,000=$1.50 /unit
Conversion:($34,050+$352,950)/215,000=$1.80/unit
Total=$1.50+$1.80
=$3.30 per unit
12. Option d=$139,500
Explanation:
Direct material:units in ending inventory+cost per equivalent unit
=75,000×$1.50
=$112,500
Conversion=15000×$1.80
=$27,000
Total=$112,500+$27,000
=$139,500
13. Option b
Explanation:
Equivalent units:
=Units to complete in beginning inventory+units started and completed +units in ending inventory
Direct material:0+(200000-50,000)+75,000=225,000
Conversion:(50000×60%)+(200000-50,000)+(75000×20%)
=195,000 units
14.
Option d is correct=$1.52,1.81
Explanation:
Cost per equivalent units=cost incurred during this period/equivalent units
Direct material:$342,500/225,000=$1.52 /unit
Conversion:$352,950/195,000=$1.81 / unit
15.
Option. A=$658,350
Explanation:
Beginning WIP=$104,550
To complete beginning WIP(50000×60%×$1.81)=$54,300
Started and completed (150,000×(1.52+1.81)=499,500
Transferred to sewing=$658,350
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