Black, Inc., acquired another company for $5,000,000. The fair value of all identifiable tangible and intangible assets was $4,500,000. Black will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition
Answer:
The correct answer is "Zero (0)".
Explanation:
An applies specifically asset which is responsible for a different corporation's or business's extra purchasing amount, is considered as Goodwill.Goodwill commodities are confidential, intellectual properties or copyright and trademark awareness that aren't commonly produced. Therefore it isn't amortized.Thus, the above is the appropriate solution.
Mary incurred a $20,000 nonbusiness bad debt last year. She also had an $18,000 long-term capital gain last year. Her taxable income for last year was $25,000. During the current year, she unexpectedly collected $12,000 on the debt. How should Mary account for the collection
Answer: $12000 income.
Explanation:
It should be noted that non business bad debts are regarded as short term capital loss. In the question given, the $18000 long-term capital gain will have to be offset against the bad debt of $20000.
In this case, the tax benefit will be $18000, therefore $12000 will be recognized as the income.
Marigold Industries has 8400 equivalent units of production for both materials and for conversion costs. Total manufacturing costs are $123880. Total materials costs are $97000. How much is the conversion cost per unit?a. $12.37. b. $5.10. c. $29.84.d. $17.47.
Answer:
Wow that’s a lot of numbers hold up
Explanation:
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Answer:
Bargain Electronics
Bargain Electronics would realize a net income of $6,000 by accepting the special order.
Explanation:
a) data and Calculations:
Production costs of MP3 Player:
Variable cost = $20
Fixed cost = $10
Total costs = $30
Selling price = $45
Special order from a foreign wholesaler = 3,000 units
Special order selling price = $25 per unit
Additional special shipping costs per unit = $3
Variable production costs = $20
Total costs for the special order = $23 ($3 + $20)
Net income from special order = $6,000 ($2 * 3,000)
Fixed costs can be defined as costs thatGroup of answer choicesvary inversely with production.vary in proportion with production.are incurred only when production is large enough.are incurred even if nothing is produced.
Answer: are incurred even if nothing is produced.
Explanation:
Fixed costs are referred to as the cost that doesn't vary with the production level. Even if the company doesn't produce anything, the fixed cost will still be incurred.
The fixed cost is different from the variable cost which is the cost that varies along with production. Examples of fixed cost include salaries, rental lease payments, salaries, etc.
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:
Beginning work in process (30% complete) 80,000
Direct materials $80,000
Conversion cost 190,000
Total cost of beginning work in process $270,000
Number of units started 152,000
Number of units completed and transferred to finished goods ?
Ending work in process (50% complete) 68,000
Current period costs
Direct materials $180,000
Conversion cost 314,000
Total current period costs $494,000
Required:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the cost per equivalent unit.
Answer:
The solution to these questions can be defined as follows:
Explanation:
For point a:
[tex]Physical \ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Physical\ units[/tex]
[tex]Beginning\ units\ \ \ \ \ \ \ \ \ \ \ \ 80000\ \ \ \ \ \ \ \ \ \ \ \ Units\ completed \ \ \ \ \ \ \ \ \ \ \ \ 164000\\\\Units \ started\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 152000\ \ \ \ \ \ \ \ \ \ \ \ Ending\ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ 68000\\\\Total\ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000\ \ \ \ \ \ \ \ \ \ \ \ Total \ units \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000\\\\[/tex]
For point b:
[tex]Equivalent\ units[/tex]
[tex]Physical\ units \ \ \ \ \ \ \ \ \ \ Direct \ materials\ \ \ \ \ \ \ \ \ Conversion[/tex] [tex]Units \ completed\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 164000\ \ \ \ \ \ \ \ \ \ \ \ 164000\ \ \ \ \ \ \ \ \ \ \ \ 164000 \\\\Ending \ inventory\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 68000\ \ \ \ \ \ \ \ \ \ \ \ 68000\ \ \ \ \ \ \ \ \ \ \ \ 34000\\\\Total \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000 \ \ \ \ \ \ \ \ \ \ \ \ 232000\ \ \ \ \ \ \ \ \ \ \ \ 198000[/tex]
Nonmanufacturing costs are ______. Multiple choice question. always reported as inventory only reported as inventory under variable costing never reported as inventory only reported as inventory under full absorption costing
Answer:
never reported as inventory
Explanation:
Nonmanufacturing costs are never reported as inventory. This is because they are not tangible items that need to be stored, also these costs do not have anything to do with the production of the end product and are not resources to the production process. Instead, these costs revolve around everything not related to the product creation such as company personnel or shipping/storage costs. Therefore, it is never reported to inventory which is for products and resources.
Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year just ended is as follows: West East Units produced and sold 33,000 43,000 Selling price per unit $ 8 $ 15 Variable costs per unit 4 5 Direct fixed cost 51,000 113,000 Common fixed cost 43,000 43,000 Common fixed expenses have been allocated equally to each of the two divisions. Carter's segment margin for the West Division is:
Answer:
$81,000
Explanation:
Segment margin is derived by deducting all expenses that are directly traceable to the segment and it does not include corporate common expenses.
Particulars Amount
Contribution $132,000 [33,000*(8-4)]
Less: Direct fixed cost ($51,000)
Segment Margin $81,000
So, Carter's segment margin for the West Division is $81,000.
In January, Dieker Company requisitions raw materials for production as follows: Job 1 $970, Job 2 $1,700, Job 3 $790, and general factory use $660. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Dr Work in Process Inventory $3460
Cr Manufacturing Overhead $660
Cr Raw materials Inventory $2,800
Explanation:
Preparation of a summary journal entry to record raw materials used.
Based on the information given the summary journal entry to record raw materials used will be:
Dr Work in Process Inventory $3460
($970+$1700+$790)
Cr Manufacturing Overhead $660
Cr Raw materials Inventory $2,800
($3460-$660)
(To record raw materials used)
Notes Receivable differ from Accounts Receivable in that Notes Receivable: A. are generally considered a weaker legal claim B. do not have to be created for every new transaction, so they are used more frequently C. are noncurrent assets D. generally charge interest from the day they are signed to the day they are collected
Answer: D. generally charge interest from the day they are signed to the day they are collected
Explanation:
The notes receivable refers to the written promise that an amount of money will be received at a future date.
It should be noted that such money consist of the principal and the interest accrued. It is written under the current assets section in the balance sheet.
On the other hand, the accounts receivable refers to the payment that a company will receive from the customers who have bought its goods on credit.
While the nite receivable charges interest, the account receivable doesn't. Therefore, notes receivable differ from accounts receivable in that notes receivable generally charge interest from the day they are signed to the day they are collected.
A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is:___________A) Work In Process Inventory 58,000Raw Materials Inventory 58,000B) Direct Materials 58,000Indirect Materials 9,000Work in Process Inventory 67,000C) Manufacturing Overhead 67,000Raw Materials Inventory 67,000D) Work In Process Inventory 58,000Manufacturing Overhead 9,000Raw Materials Inventory 67,000
Answer:
Work In Process Inventory 58,000Manufacturing Overhead 9,000Raw Materials Inventory 67,000
Explanation:
Account titles and explanation Debit Credit
Work In Process Inventory $58,000
Manufacturing overhead $9,000
Raw Materials Inventory $67,000
Direct Materials from the storeroom is recorded as work in process Inventory and is debited, Also Indirect materials is recorded as manufacturing overheads and debited. This should correspond with a credit to the raw material inventory.
An effective minimum wage law can be expected to clear the market for unskilled workers. increase employment for some affected workers. increase the number of firms in those industries where the law is effective. reduce the hours worked for some unskilled workers. all of the above
Answer:
all of the above
Explanation:
The law related to the effective minimum wage could be predicted for non-skilled workers market, it raised the employment for some workers that are impacted, the number of firms should be increased, it decreased the non-skilled workers hours
So all of the above options is correct as it included all
MC Qu. 97 K Company estimates that overhead costs for... K Company estimates that overhead costs for the next year will be $3,648,000 for indirect labor and $960,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. Of 96,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 5 direct labor hours
Answer:
Allocated MOH= $240
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (3,648,000 + 960,000) / 96,000
Predetermined manufacturing overhead rate= $48 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 48*5
Allocated MOH= $240
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $670,000, Allowance for Doubtful Accounts has a debit balance of $6,000, and sales for the year total $3,020,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $21,000. a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable. $fill in the blank 5
Answer:
a. $27,000
b. $670,000
$21,000
$27,000
c.$649,000
Explanation:
a. Calculation to determine the amount of the adjusting entry for uncollectible accounts
Using this formula
Adjusting entry for Uncollectible accounts = Allowance for Doubtful Accounts - Debit balance on Allowance for doubtful accounts
Let plug in the formula
Adjusting entry for Uncollectible accounts= $21,000 + $6,000
Adjusting entry for Uncollectible accounts= $27,000
b. Calculation to determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable = $670,000
Allowance for Doubtful Accounts = $21,000
Bad Debt Expense =$21,000 + $6,000
Bad Debt Expense= $27,000
c. Calculation to determine the net realizable value of accounts receivable
Using this formula
Net realizable value of accounts receivable = Accounts receivables - Allowance for Doubtful Accounts
Let plug in the formula
Net realizable value of accounts receivable= $670,000 - $21,000
Net realizable value of accounts receivable= $649,000
Therefore the net realizable value of accounts receivable is $649,000
Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of producing the 8,900 units of the part that are needed every year.
Per Unit
Direct materials $8.20
Direct labor $4.60
Variable overhead $9.10
Supervisor's salary $3.40
Depreciation of special equipment $2.90
Allocated general overhead $1.60
An outside supplier has offered to make the part and sell it to the company for $28.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $4,600 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of one of the company's other products, generating an additional segment margin of $17,800 per year for that product.
Required:
Prepare a report that shows the financial impact.
Answer:
Recher Corporation
Differential Analysis:
Make Buy Difference
Total variable costs $225,170 $249,200 ($24,030)
General overhead 4,600 4,600
Additional segment margin (17,800) 17,800
Total costs $229,770 $231,400 ($1,630)
Recher should continue making the part. It will incur $1,630 additional cost to buy it from the outside supplier than making it in-house.
Explanation:
a) Data and Calculations:
Annual units of Q89 required = 8,900
Per Unit
Direct materials $8.20
Direct labor $4.60
Variable overhead $9.10
Supervisor's salary $3.40
Depreciation of special equipment $2.90
Allocated general overhead $1.60
Relevant costs:
Direct materials $8.20
Direct labor $4.60
Variable overhead $9.10
Supervisor's salary $3.40
Variable costs per unit $25.30
Total variable costs $225,170 (8,900 * $25.30)
Avoidable general overhead 4,600
Total avoidable production costs = $229,770
Cost of purchasing from outside supplier = $249,200 (8,900 * $28.00)
less additional segment margin 17,800
Net avoidable purchase costs $231,400
A company has a degree of operating leverage of 2.5. If sales increase by 10%, then profits will: Multiple choice question. increase by 25% increase by 10% decrease by 10% decrease by 25%
Answer:
. increase by 25% increase
Explanation:
The degree of operating leverage (DOL) measures the sensitivity of a company's operating income or profits to changes in the demand
DOL = percentage change in operating income or profits / percentage change in units sold
2.5 = percentage change in operating income / 10%
percentage change in operating income = 10% x 2.5 = 25%
profits will increase by 25%
A practitioner is engaged to prepare a client's federal income tax return for 20X1 and 20X2. The practitioner files the 20X1 return on the client's behalf and provides copies of the 20X1 return and all related documents to the client. After the 20X2 return is prepared, the client disputes the fees for the 20X2 tax engagement, terminates the relationship, and requests all tax returns and related records. The client has not yet paid for preparation of the 20X2 return. Under IRS Circular No. 230, which records must the practitioner return to the client
Question Completion with Options:
A.) Notes the practitioner took when meeting with the client about the 20X1 and 20X2 tax returns.
B.) The engagement letter executed by the client for preparation of the 20X2 federal income tax return.
C.) An appraisal the practitioner prepared in connection with the 20X1 federal income tax return.
D.) Schedules the practitioner prepared, which the client needs to file in its 20X2 federal income tax return.
Answer:
Under IRS Circular No. 230, the records the practitioner must return to the client are:
D.) Schedules the practitioner prepared, which the client needs to file in its 20X2 federal income tax return.
Explanation:
Under IRS Circular No. 230, the practitioner must, at the request of a client, promptly return all records to enable the client to comply with his or her Federal tax obligations. However, the practitioner may retain copies of the records returned to the client. This means that the fees dispute does not stop the practitioner from returning records to the client.
Prepare journal entries to record each of the following four separate issuances of stock.
1. A corporation issued 8,000 shares of $20 par value common stock for $192,000 cash.
2. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,500. The stock has a $1 per share stated value.
3. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,500. The stock has no stated value.
4. A corporation issued 2,000 shares of $50 par value preferred stock for $158,500 cash.
Answer: Please see explanation column for answers
Explanation
1.To record the issue of 8,000 shares of $20 par value.
Account titles and explanation Debit Credit
Cash Account $192,000
Common Stock( 8,000 shares x $20) $160,000 $160,000
Paid-in In Excess of Par $32,000
2. To record the issue of 4,000 shares of $1 stated value.
Account titles and explanation Debit Credit
Retained Earnings $4,000
Common Stock $4,000
3. To record the issue of 4,000 shares of no stated value.
Account titles and explanation Debit Credit
Retained Earnings $58,500
Common Stock $58,500
4.To record the issue of 2,000 shares of $50 par value.
Account titles and explanation Debit Credit
Cash $158,500
Preferred Stock( 2,000 shares x $50) $100,000
Paid-in In Excess of Par $58,500
In Coronado Company, the Cutting Department had beginning work in process of 5100 units, transferred out 24800 units, and had an ending work in process of 3000 units. How many units were started by Coronado during the month
Answer:
The answer is "22700 units"
Explanation:
[tex]\text{Processed work} =5100\\\\\text{Outer Transfers} =24800\\\\\text{Process in the ending work} =3000\\\\\text{The amount started units \ :}[/tex]
[tex]=24800+3000-5100\\\\=27800-5100\\\\=22700 \ units[/tex]
The listing of cash received via mail should be sent to which of the following individuals: ___________
a. Cashier
b. Customer
c. Record keeper
d. Mail clerk
e. Treasurer
Answer:
a. Cashier
c. Record keeper
d. Mail clerk
Explanation:
Your friend Lorenzo is trying to decide on a career path. He has narrowed down his search to two choices. Before he selects a major, he wants to know more about the two careers and the skills needed for each profession. What advice would you give Lorenzo
Answer:
Interview someone in each of your chosen fields.
Explanation:
In the context, my friend Lorenzo wants advice from me regarding career choices. He has somehow researched and narrowed down the choices to two choices. Lorenzo wants to know more about the major and the skills required for each of the profession.
I would suggest him to interview someone experience person in this field and get insights from him. It will provide Lorenzo a better understanding of the major selection and it will also create a blueprints of the future paths.
Use the following information: a. Beginning cash balance on March 1, $72,000. b. Cash receipts from sales, $300,000. c. Budgeted cash payments for direct materials, $140,000. d. Budgeted cash payments for direct labor, $80,000. e. Other budgeted cash expenses, $45,000. Cash repayment of bank loan, $20,000.Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash payments for the month of March and the balance expected on March 31.
Answer:
the budget of the pines is 8 to them b sqare the 4 in you get 12,500
Explanation:
Answer:
no clue
Explanation:
have a good day:)))
If financial markets are efficient, that suggests that:_____.
a. investors cannot expect to outperform the market consistently.
b. security prices are random.
c. investors cannot earn superior.
d. returns bearing additional risk will not increase return.
Answer:
A
Explanation:
The efficient market hypothesis posits that market prices contains all information in the market. As a result, an investor cannot consistently expect to outperform the market or consistently generate a positive alpha.
The efficient market hypothesis thus suggests a passive form of investment.
Forms of the efficient market hypothesis
a. the weak form - market prices contain information about past market prices. thus there is no need for technical analysis
b. the semi strong - it posits that market prices consists of all publicly available information
c. the strong form - it submits that market prices reflects both publicly and privately available information. As a result, excess returns cannot be earned consistently through insider trading
True or False: Efficiency wages are higher-than-average wages that are intended to reduce the chances that workers engage in non-productive behavior that might jeopardize their high-paying job. True False
Answer: True
Explanation:
The motivations of employees are both financial and non-financial with a high salary considered to be a financial motivation. Employers will pay employees a higher wage so as to motivate them to be more productive at work. This is called an efficiency wage because it increases the productivity of employees by motivating them more.
When workers are being paid such a high salary in relation to the average salary in the market, they would want to ensure that they keep getting paid this huge salary so they will try to avoid non-productive behavior that would lead to them losing their jobs.
At April 30, Sheridan Company has the following bank information:
Cash balance per bank $3000
Outstanding checks $240
Deposits in transit $500
Credit memo for interest $10
Bank service charge $20
What is Sheridan adjusted cash balance on April 30?
a. $8575.
b. $7625.
c. $8560.
d. $8600.
Answer:
the adjusted cash balance on April 30 is $3,260
Explanation:
The computation of the adjusted cash balance is given below:
Cash balance per bank $3,000
Less: Outstanding checks ($240)
Add: Deposits in transit $500
Adjusted cash balance $3,260
hence, the adjusted cash balance on April 30 is $3,260
This is the answer but the same is not provided in the given options
Examples of cash equivalents include all of the following EXCEPT U.S. Treasury bills. notes issued by major corporations. money market funds. long-term notes receivable.
Answer:
long-term notes receivable.
Explanation:
Cash equivalents can be regarded as total cash value that is available on hand, this encompass items that has similarities with cash and must be regarded as current assets. cash or cash equivalents of a company can be seen at top line of the balance sheet.
Examples of cash equivalents are;
✓Treasury bills
✓notes issued by major corporations. ✓money market funds.
When the price of paintings is set at $500, the local art gallery supplies 20 paintings per week. When the price of paintings increases to $750, the gallery supplies 25 paintings. Calculate the price elasticity of supply using the mid-point formula. Instructions: Round your answer to two decimal places. If you are entering a negative number be sure to include a negative sign (-) in front of that number. The price elasticity of supply is: .
Answer:
the price elasticity of supply is 0.555
Explanation:
The computation of the price elasticity of supply is given below:
= Percentage change in quantity supplied ÷ percentage change in price
= (25 - 20) ÷ (25 + 20) ÷ 2 ÷ (750 - 500) ÷ (750 + 500) ÷ 2
= 5 ÷45 ÷ 250 ÷ 125
= 0.555
Hence, the price elasticity of supply is 0.555
The same is relevant
XYZ produces a single product and has provided the following data for its most recent month of operations:
Number of units produced 6,400
Variable costs per unit:
Direct materials $72
Direct labor $80
Variable manufacturing overhead $10
Variable selling and administrative expense $12
Fixed costs:
Fixed manufacturing overhead $224,000
Fixed selling and administrative expense $288,000
There were no beginning or ending inventories. The absorption costing unit product cost was: ____________-
Answer: $197
Explanation:
With absorption costing, the fixed manufacturing costs are absorbed by the products which means that the product cost will include fixed costs related to manufacturing.
The absorption costing unit product cost is therefore:
= Direct materials + Direct Labor + Variable manufacturing overhead + Fixed manufacturing Overhead per unit
Fixed manufacturing overhead per unit is:
= 224,000 / 6,400 units
= $35 per unit
Absorption cost unit product cost = 72 + 80 + 10 + 35
= $197
Suppose that France and Denmark both produce oil and olives. Frances’s opportunity cost of producing a crate of olives is 4 barrels of oil, while Denmark’s opportunity cost of producing a crate of olives is 7 barrels of oil.
By comparing the opportunity cost of producing olives in the two countries, you can tell that _______has a comparative advantage in the production of olives and ______has a comparative advantage in the production of oil.
Suppose that France and Denmark consider trading olives and oil with each other. France can gain from specialization and trade as long as it receives more than _____ of oil for each crate of olives it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than _____ of olives for each barrel of oil it exports to France.
Based on your answer to the last question, which of the following terms of trade (that is, price of olives in terms of oil) would allow both Denmark and France to gain from trade?
A__ 6 barrels of oil per crate of olives
B__ 3 barrels of oil per crate of olives
C__ 5 barrels of oil per crate of olives
D__ 8 barrels of oil per crate of olives
Answer: See explanation
Explanation:
Based on the information given in the question, one can deduce that while (France) has a comparative advantage in the production of olives, it should be noted that on the other hand, (Denmark) has a comparative advantage in the production of oil.
If France and Denmark consider trading olives and oil with each other, then France can gain from specialization and trade as long as it receives more than (4) of oil for each crate of olives it exports to Denmark while on the other hand, Denmark can gain from trade as long as it gets more than (1/7) crate of olives for each barrel of oil it exports to France.
The terms of trade that would allow both Denmark and France to gain from trade include:
• 6 barrels of oil per crate of olives.
• 5 barrels of oil per crate of olives.
Department M had 3,000 units 59% completed in process at the beginning of June, 12,800 units completed during June, and 1,000 units 32% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories? a.11,350 units b.13,120 units c.9,800 units d.14,120 units
Answer:
Department M
The number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories is:
a. 11,350 units
Explanation:
Beginning work in process units = 3,000
Degree of completion = 59%
Work to be done during June on the beginning WIP = 1,230 units (3,000 * 41%)
Units started and completed during June = 9,800 Units (12,800 - 3,000)
Ending work in process, equivalent units = 320 (1,000 * 32%)
Total equivalent units of production for conversion costs for June, using the FIFO method are = 11,350 units
