Question
In: Accounting
Part A Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department,...
Part A
Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments.
All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 89 canoes and transferred them to the Waterproofing Department.
Part 2
What are the Fabrication Department's equivalent units of production related to materials for July?
Multiple Choice
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97
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81
-
119
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109
Part B
Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments.
All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 71 canoes and transferred them to the Waterproofing Department.
What are the Fabrication Department's equivalent units of production related to conversion costs for July?
Multiple Choice
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63
-
79
-
101
-
91
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt:
Fabrication Department factory overhead
$577,200.00
Assembly Department factory overhead
235,200.00
Total
$812,400.00...
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt:
1
Fabrication Department factory overhead
$577,200.00
2
Assembly Department factory overhead
235,200.00...
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt:
Fabrication Department factory overhead
$380,000
Assembly Department factory overhead
152,000
Total
$532,000...
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt:
1
Fabrication Department
factory overhead
$636,650.00
2
Assembly Department
factory overhead
243,000.00...
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt: 1
Fabrication Department factory overhead $636,650.00 2 Assembly
Department factory overhead 243,000.00...
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt:
1
Fabrication Department factory overhead
$571,200.00
2
Assembly Department factory overhead
253,000.00...
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt:
Fabrication Department factory overhead
$570,000
Assembly Department factory overhead
266,000
Total
$836,000...
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt:
1
Fabrication Department factory overhead
$561,600.00
2
Assembly Department factory overhead
241,500.00...
The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Firebolt Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plantwide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Firebolt: Question
not attempted. 1 Fabrication Department factory overhead
$440,000.00 2 Assembly Department...
The management of Smith Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication...
The management of Smith Industries Inc. manufactures gasoline
and diesel engines through two production departments, Fabrication
and Assembly. Management needs accurate product cost information in
order to guide product strategy. Presently, the company uses a
single plant wide factory overhead rate for allocating factory
overhead to the two products. However, management is considering
the multiple production department factory overhead rate method.
The following factory overhead was budgeted for Smith:
1
Fabrication Department
factory overhead
$455,000.00
2
Assembly Department
factory overhead...
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