Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4
Tamar Co. manufactures a single product in one department. All
direct materials are added at the beginning of the manufacturing
process. Conversion costs are added evenly throughout the process.
During May, the company completed and transferred 29,200 units of
product to finished goods inventory. Its 4,400 units of beginning
work in process consisted of $21,200 of direct materials and
$284,940 of conversion costs. It has 3,100 units (100% complete
with respect to direct materials and 80% complete with respect to
conversion) in process at month-end. During the month, $592,500 of
direct material costs and $2,788,020 of conversion costs were
charged to production.
Problem 20-4A Part 2
2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
In: Accounting
In: Economics
[The following information applies to the questions displayed
below.]
Tamar Co. manufactures a single product in one department. All
direct materials are added at the beginning of the manufacturing
process. Conversion costs are added evenly throughout the process.
During May, the company completed and transferred 24,700 units of
product to finished goods inventory. Its 3,500 units of beginning
work in process consisted of $89,120 of direct materials and
$806,926 of conversion costs. It has 2,650 units (100% complete
with respect to direct materials and 80% complete with respect to
conversion) in process at month-end. During the month, $570,015 of
direct material costs and $2,331,014 of conversion costs were
charged to production.
Assume that Tamar uses the FIFO method to account for its process
costing system.
In: Accounting
month of 05/2020 = 140 units sold.
| 05/01 | Inventory | Units | Unit cost | Total cost |
| 05/15 | Purchases | 6 5 | $13 | $ 845 |
| 05/24 | Purchases | 5 4 | 16 | 864 |
| Totals | 7 5 | 17 | 1275 | |
| 1 9 4 | 2984 |
Ending invent.@ 05/31 and cost of goods sold using FIFO/LIFO
| FIFO | LIFO | |
| End Inventory 05/31 | ? | ? |
| Cost o f goods sold | ? | ? |
Needing some help with homework Thanks!
In: Accounting
Pump A
Initial Cost: 7000
Salvage Value:1200
Useful Life:12
Pump B
Initial Cost: 5000
Salvage Value: 1000
Useful Life: 6
Two pumps are being considered for purchase. If interest is 9%, which pump should be bought?
In: Economics
A firm has sold 55,555 bicycles in 2020 that has variable cost of $199.55 for $299.99 each. The company's fixed cost for the year was $3,000,000. Show your work here below. To find Profit, compute the following first.
1. Total Variable Cost (TVC) ______
2. Total Cost (TC) _____
3. Total Revenue (TR) ______
4. Profit = ____
In: Accounting
QUESTION ONE: COST–VOLUME–PROFIT (CVP) ANALYSIS
(a) Identify the SIX underlying assumptions of cost–volume–profit (CVP) analysis.
(b) Select ANY THREE assumptions given in (a) and discuss the difficulties that could arise in CVP analysis if these assumptions do not hold.
QUESTION TWO: PUTTING ACCOUNTING DECISIONS IN CONTEXT
(a) Describe TWO financial and TWO non-financial performance indicators which may be useful for users of the reports of a public benefit entity (e.g. a museum).
(b) If you were a member of the governing body of a public entity body, which ONE of the performance indicators described in (a) would you regard as the most useful to evaluating the entity’s success? State the reasons for your choice.
QUESTION THREE: FINANCIAL REPORTING AND PROFESSIONAL JUDGEMENT
Explain why the figures in financial statements are sometimes disputed even though reporting entities comply with accounting standards in the preparation of financial statements.
In: Accounting
Compute cost of goods sold, assuming Kingbird uses:
| 1.Perpetual system, FIFO cost flow |
2.Perpetual system, LIFO cost flow
3.
| Perpetual system, moving-average cost flow |
Kingbird Company is a multi product firm. Presented below is
information concerning one of its products, the Hawkeye.
|
Date |
Transaction |
Quantity |
Price/Cost |
|||
| 1/1 | Beginning inventory | 3,500 | $19 | |||
| 2/4 | Purchase | 4,500 | 28 | |||
| 2/20 | Sale | 5,000 | 47 | |||
| 4/2 | Purchase | 5,500 | 36 | |||
| 11/4 | Sale | 4,700 |
52 |
In: Accounting
Brief Exercise 6-7 Calculate ending inventory and cost of goods sold using weighted-average cost (LO6-3)
During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year.
| Date | Transaction | Number of Units | Unit Cost | Total Cost | |||||||
| Jan. 1 | Beginning inventory | 60 | $ | 82 | $ | 4,920 | |||||
| May. 5 | Purchase | 250 | 85 | 21,250 | |||||||
| Nov. 3 | Purchase | 200 | 90 | 18,000 | |||||||
| 510 | $ | 44,170 | |||||||||
Calculate ending inventory and cost of goods sold for the year, assuming the company uses weighted-average cost. (Round your average cost per unit to 4 decimal places.)
In: Accounting
A statistical cost analysis has revealed that Robertson Rotorcraft Company’s long-run cost is: ??(?)=0.0004?3−0.48?2_+432?, where ? is the number of helicopters it produces per year and ? is its (total) cost in thousands of dollars. This implies that the firm’s long-run marginal cost is ??(?)=0.0012?2−0.96?+432. This year, due to short-run commitments and standing contracts with suppliers, the firm’s short-run cost has been estimated as ??(?)=0.0012?3−1.2?2+432?+86,400, which implies the short-run marginal cost ??(?)=0.0036?2−2.4?+432. All costs are expressed in thousands of dollars. Let ? be the price at which the company sells helicopters. a) What is this firm’s minimum efficient scale of production (MES)? b) How low can the price ? go before it is optimal for the firm to shut down in the short run (this year)? c) If the firm expects demand for helicopters to fall to a point where it will no longer be possible to sell helicopters for a price higher than $250,000 for the foreseeable future, should this firm plan to shut down in the long run (next year and beyond)?
I attempted a) MES=600. b) price $132. c) not sure
Can you tell me if my answers a) and b) are correct and also can you help with c)
In: Economics