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Dewey Company uses the weighted-average method in its process-costing system. The first processing department, the Welding Department, started the month with 15,000 units in its beginning work-in-process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $19,200. An additional 86,000 units were started into production during the month. There were 13,000 units in the ending work-in-process inventory of the Welding Department that were 60% complete with respect to conversion costs. A total of $575,360 in conversion costs were incurred in the department during the month.
Find the cost per equivalent unit for conversion costs
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Manufacturing overhead for the month was overapplied by $5,000. The company allocates any underapplied or overapplied overhead among work in process.
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Our clients are currently under audit. The unresolved issue relates to this stock loss. Each client showed their share of the loss ($90,000 each) on their individual income tax returns.
Please discuss the effects of inventory management on cash conversion cycle and cost of goods for the firm.
Prepare the budgets Sale, direct Materials Purchase Budget and direct Labour Budget
Assume that for the second quarter in row, profits are down at Waterfall division. Division Management budgeted $250,000 in profits for the second quarter but actual results were only $197,000 in profits.
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