Reference no: EM131265217
Assignment
Zap Rap Inc. is a manufacturer of audio CDs. The company's chief financial officer is trying to verify the accuracy of the December 31 work in process and finished goods inventories prior to closing the books for the year. He strongly suspects that the year-end dollar balances are incorrect, but he believes that all the other data are accurate. The year-end balances shown on Zap Rap's books are as follows:
|
|
Units
|
Costs
|
|
Work in process, December 31 (materials 100% complete; conversion 50% complete)
|
43,600
|
$ 121,294
|
|
Finished goods, December 31
|
57,900
|
$ 193,797
|
There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department.
A review of the company's inventory and cost records has disclosed the following data:
|
|
|
Costs
|
|
|
Units
|
Materials
|
Conversion
|
|
Work in process, January 1 (materials 100% complete; conversion 80% complete)
|
|
34,400
|
|
$
|
48,160
|
|
$
|
49,192
|
|
|
Started into production
|
|
810,000
|
|
|
|
|
|
|
|
|
Costs added during the year
|
|
|
|
$
|
1,134,000
|
|
$
|
1,620,686
|
|
|
Units completed during the year
|
|
800,800
|
|
|
|
|
|
|
|
Required:
1. Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year. (Round your "Cost per equivalent unit" answers to 2 decimal places.)
|
|
Materials
|
Conversion
|
|
Equivalent units of production
|
|
|
|
Cost per equivalent units
|
|
|
2. Determine the amount of cost that should be assigned to the ending work in process and finished goods inventories.
|
|
Materials
|
Conversion
|
Totals
|
|
Cost of ending work in process inventory
|
|
|
|
|
Costs of finished goods inventory
|
|
|
|
3. Prepare the necessary correcting journal entry to adjust the work in process and finished goods inventories to the correct balances as of December 31. (Round intermediate calculations to 2 decimal places.)
Record the entry to adjust the work in process and finished goods inventories
4. Determine the cost of goods sold for the year, assuming that there is no underapplied or overapplied overhead.
Cost of Goods Sold:
|
Entry to record the current calendar year depreciation
: Martinez Company owns a building that appears on its prior year-end balance sheet at its original $572,000 cost less $429,000 accumulated depreciation. Determine the building’s age (plant asset age) as of the prior year-end balance sheet date. Prepar..
|
|
Legal aspects of us health care system administration
: Prevailing wisdom reinforces the fact that working in U.S. health care administration in the 21st Century requires knowledge of the various aspects of health laws as they apply to dealing with medical professionals.
|
|
Regain confidence and business of breakaway travel service
: In an adjustment letter, try to regain the confidence and the business of Breakaway Travel Service, 350 Valle Vista Drive, San Luis Obispo, CA 93403.
|
|
Determine the cost of goods sold for the year
: Determine amount of cost that should be assigned to the ending work in process and finished goods inventories. Determine the cost of goods sold for the year, assuming that there is no underapplied or overapplied overhead.
|
|
New behavior and reinforce and recognize others
: What can be done to ensure that guiding teams model the new behavior and reinforce and recognize others?
|
|
What components would you emphasize
: You are tasked to do an in-service for middle-aged people who want to learn about the concept of "successful aging." How would you describe this idea? What components would you emphasize? What would you recommend they do in order to achieve thi..
|
|
Describe each of the eleven laminates
: Consider laminates reinforced with one lamina of a fabric from Table 2.8. Describe each of the eleven laminates using the laminate description code in Section 6.3.1 (see also Table 1.5). For each fabric type, specify if the laminate is balanced an..
|
|
Receive a call from a colleague at another hospital
: You are a hospital administrator, and you receive a call from a colleague at another hospital. Your colleague, who is a friend, informs you that he has received a demand for a stipend from the ophthalmologists who take ED calls at his hospital, an..
|