Reference no: EM131111012
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.
Proliferation of big data
: Read the article, The Ethics of Big Data. Based on the content presented in the article, describe the microeconomic principles being used, in other words what is the impact for demand?
|
Important to match supply and demand
: 1. Why is it important to match supply and demand? If a manager believes that supply and demand will not be equal, what actions could the manager take to increase the probability of achieving a match?
|
Oligarchy and a monopoly
: What's the difference between an Oligarchy and a Monopoly?
|
Find the differential equation of motion for a spherical
: Find the differential equation of motion for a spherical pendulum of length. A particle of man m can slide without friction on the inside of a small tube which is bent in the form of circular ring of radius r the tude estate about a vertical diameter..
|
Direct materials and conversion costs for month of january
: How many units were transferred from the Packaging Department to the Finished Goods Department during the month and what were the equivalent units of production for direct materials and conversion costs for the month of January?
|
Female labor force participation rates
: Explain the reasons for the increase in female labor force participation rates since the 1940s.
|
Argument of whether global warmingreally exists
: To avoid becoming trapped in the politicallycharged argument of whether global warmingreally exists, a company might defend its initiativesfor reducing carbon dioxide emission bysaying, "Cleaning up the environment is agood idea in its own right, ..
|
Marginal factor cost in a monopsony market
: Explain the relationship between the wage rate and the marginal factor cost in a monopsony market. Is the wage rate equal to the marginal factor cost? Is so, explain why this is the case. If not, explain why not.
|
What is the core business of ping an in china
: What is the core business of Ping An in China? What are its competitive advantages in its peer group in terms of size, market share, profitability and strength?
|