Question
In: Accounting
Question: Elmo has the following information for the month of October, its first month of operations...
Question:
Elmo has the following information for the month of October, its first month of operations
Work in Process October 1st $0
Units completed & transferred out in October $120,000
Work in Process October 30th $32,000
100% completed for materials
80% completed for conversion costs
Costs added in October shown below
Materials $145,900
Direct Labour $ 96,000
Overhead $108,000
(1.) Determine the equivalent units of production for October.
(2.) Determine the cost of the ending work-in-process.
(3.) Determine the cost of goods completed.
(4) What is meant by the term equivalent full units?
Solutions
ekkarill92 answered 2 months agoRelated Solutions
On October 31, the end of the first month of operations, Morristown & Co. prepared the...
On October 31, the end of the first month of operations,
Morristown & Co. prepared the following income statement based
on absorption costing:
Morristown & Co.
Absorption Costing Income
Statement
For Month Ended October 31,
20--
Sales (2,600 units)
$117,000
Cost of goods sold:
Cost of goods manufactured
$85,500
Less ending inventory (400 units)
11,400
Cost of goods sold
74,100
Gross profit
$42,900
Selling and administrative expenses
21,500
Income from operations
$21,400
If the fixed manufacturing costs were $42,900 and...
Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating...
Prior to the first month of operations ending October 31,
Marshall Inc. estimated the following operating results:
1
Sales (28,800 × $75)
$2,160,000.00
2
Manufacturing costs (28,800 units):
3
Direct materials
1,209,600.00
4
Direct labor
316,800.00
5
Variable factory overhead
172,800.00
6
Fixed factory overhead
241,920.00
7
Fixed selling and administrative expenses
29,200.00
8
Variable selling and administrative expenses
35,000.00
The company is evaluating a proposal to manufacture 36,000 units
instead of 28,800 units, thus creating an ending inventory of...
Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating...
Prior to the first month of operations ending October 31,
Marshall Inc. estimated the following operating results:
1
Sales (28,800 × $80)
$2,304,000.00
2
Manufacturing costs (28,800 units):
3
Direct materials
1,152,000.00
4
Direct labor
259,200.00
5
Variable factory overhead
172,800.00
6
Fixed factory overhead
244,800.00
7
Fixed selling and administrative expenses
29,400.00
8
Variable selling and administrative expenses
34,500.00
The company is evaluating a proposal to manufacture 36,000 units
instead of 28,800 units, thus creating an ending inventory of...
Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating...
Prior to the first month of operations ending October 31
Marshall Inc. estimated the following operating results:
Sales (20,000 x $71)
$1,420,000
Manufacturing costs (20,000 units):
Direct materials
852,000
Direct labor
202,000
Variable factory
overhead
94,000
Fixed factory
overhead
112,000
Fixed selling and
administrative expenses
30,500
Variable selling and
administrative expenses
36,800
The company is evaluating a proposal to manufacture 22,400 units
instead of 20,000 units, thus creating an Inventory, October 31 of
2,400 units. Manufacturing the additional units will...
Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating...
Prior to the first month of operations ending October 31,
Marshall Inc. estimated the following operating results:
1
Sales (28,800 × $90)
$2,592,000.00
2
Manufacturing costs (28,800 units):
3
Direct materials
1,209,600.00
4
Direct labor
288,000.00
5
Variable factory overhead
115,200.00
6
Fixed factory overhead
221,760.00
7
Fixed selling and administrative expenses
29,400.00
8
Variable selling and administrative expenses
35,400.00
The company is evaluating a proposal to manufacture 36,000 units
instead of 28,800 units, thus creating an ending inventory of...
Assume that Martinez Company has the following transactions in its first month of operations. Date Purchases...
Assume that Martinez Company has the following transactions in
its first month of operations.
Date
Purchases
Sold
Balance
Feb. 1
2,100 @ $3.60
2,100 units
Feb. 10
6,200 @ $3.95
8,300 units
Feb. 21
4,400 units
3,900 units
Feb. 28
2,100 @ $4.30
6,000 units
Martinez uses a perpetual inventory system.
Compute cost of goods sold and ending inventory at February 28,
assuming that Martinez uses the LIFO cost flow
assumption.
Cost of goods sold
$
Ending inventory
$
On October 31, the end of the first month of operations, Maryville Equipment Company prepared the...
On October 31, the end of the first month of operations,
Maryville Equipment Company prepared the following income
statement, based on the variable costing concept:
Maryville Equipment Company
Variable Costing Income Statement
For the Month Ended October 31
Sales (14,100 units)
$648,600
Variable cost of goods sold:
Variable cost of goods manufactured
$286,200
Inventory, October 31 (1,800 units)
(32,400)
Total variable cost of goods sold
(253,800)
Manufacturing margin
$394,800
Variable selling and administrative expenses
(169,200)
Contribution margin
$225,600
Fixed costs:...
Cost Flow Relationships The following information is available for the first month of operations of Bahadir...
Cost Flow Relationships
The following information is available for the first month of
operations of Bahadir Company, a manufacturer of mechanical
pencils:
Sales
$433,840
Gross profit
252,930
Cost of goods manufactured
216,920
Indirect labor
94,140
Factory depreciation
14,320
Materials purchased
133,620
Total manufacturing costs for the period
249,460
Materials inventory, ending
17,790
Using the above information, determine the following missing
amounts:
a. Cost of goods sold
$
b. Finished goods inventory at the end of the
month
$
c. Direct...
Dalley Inc. has the following information for its first year of operations: Revenues (200,000 units) $...
Dalley Inc. has the following information for its first year of
operations:
Revenues (200,000 units)
$
2,900,000
Manufacturing costs:
Materials
$
168,000
Variable cash costs
142,400
Fixed cash costs
327,600
Depreciation (fixed)
999,000
Marketing (variable)
422,400
Marketing depreciation
149,600
Administrative (fixed)
509,200
Administrative depreciation
74,800
Total costs
$
2,793,000
Operating profits
$
107,000
All depreciation charges are fixed and are expected to remain
the same for year 2. Sales volume is expected to increase by 15%,
but sales prices are...
In its first month of operations, Bethke Company made three purchases of merchandise in the following...
In its first month of operations, Bethke Company made three
purchases of merchandise in the following sequence: (1) 161 units
at $14, (2) 555 units at $15, and (3) 122 units at $16.
Assuming there are 353 units on hand, compute the cost of the
ending inventory under the FIFO method and LIFO method. Bethke uses
a periodic inventory system.
FIFO
LIFO
The cost of the ending inventory
$
$
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