Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be: A) the same as the units completed. B) less than the units completed. C) the same as the units started during the period. D) less than the units started during the period.
Answers
Final answer:
The equivalent units of production for conversion costs under the weighted-average method would be less than the units started during the period, given that the ending work in process inventory is only 70% complete in terms of conversion costs. Therefore, the answer is D) less than the units started during the period.
Explanation:
The subject in question relates to cost accounting, dealing with the concept of equivalent units of production. To calculate the equivalent units of production for conversion costs using the weighted-average method, you consider both the work completed during the current period and the work in process at the ending of the period. Since there is no beginning inventory, you focus solely on the units started and completed during the period and the state of the ending work in process inventory. The resulting equivalent units of production for conversion costs would be less than the units started during the period. Thus, the answer should be D) less than the units started during the period, considering that the work in process at the end of the period is only 70% complete with respect to conversion costs.
Learn more about Equivalent Units of Production here:
#SPJ6
Final answer:
Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be less than the units started during the period. This is because the ending work in process inventory is only 70% complete with respect to conversion costs, and therefore, cannot be considered a full unit.
Explanation:
Under the weighted-average method, the equivalent units of production are usually determined for each cost component. In your case, we're considering conversion costs.
So if there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs, we can determine the equivalent units of production. Barring any other factors, the equivalent units of production for conversion costs would be calculated as the sum of the units completed and the equivalent units in ending work in process inventory.
Formula: Equivalent Units = Units completed + Units in ending work in process inventory (multiplied by the percentage of completion with respect to conversion costs)
Therefore, the number of equivalent units of production with respect to conversion costs under the weighted-average method would be less than the units started during the period because the units in ending work in process are not fully complete. They are only 70% complete with respect to conversion costs, and cannot be considered as a full unit.
Learn more about Cost Accounting here:
#SPJ2
Related Questions
Tim, who is subject to a 35 percent marginal gift tax rate, made a gift of a painting to Ben, valuing the property at $7,000. The IRS later valued the gift at $15,000. Compute the applicable undervaluation penalty.
Soriano Company had net sales of $300,000 for the month (after returns and allowances of $1,500 and sales discounts of $3,250). Beginning inventory for the month was $60,000; purchases for the month were $175,000; and gross profit was 43%. What was the ending inventory for the month?
The following data pertains to Xena Corp.: Xena Corp. Total Assets $23,610 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity: Book Value $ 6,150 Market Value $25,830 Marginal Income Tax Rate 37% Market Beta 1.73 Determine the weight on equity capital that should be used to calculate Xena's weighted-average cost of capital. Select one: A. 73.8% B. 70.0% C. 24.0% D. 38.7%
Ethical wrong is done either by intending to deceive consumers in order to manipulate their buying behavior, treating them as a mere means to one's own ends (the Kantian approach) or by the harmful consequences for consumers, competitors and overall market efficiency (the utilitarian approach) but not by both. A)TRUE B)FALSE
Answers
Answer:
$56,520
Explanation:
As per given data
Year Sales Working Capital 18%
0 $279,000 ($50,220)
1 $308,000 ($5,220)
2 $314,000 ($1,080)
3 $314,000 $0
4 $314,000 $56,520
As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project
Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.
Answers
Answer:
The cash is increased by $115,000 during the month of October.
Explanation:
The computation of net effect of cash is shown below:
= Net income - increased in receivables - decrease in payable + depreciation expense
= $120,000 - $35,000 - $25,000 + $55,000
= $115,000
The increase in receivable should be deducted as the outflow of cash is there, which decrease the cash balance so we deduct it
The decrease in account payable reflect that the company has paid the amount which ultimately reduce the cash balance, hence it is deducted in the computation part
Depreciation expense is added in the cash balance because it is a non cash expense.
Thus, the amount is in positive number which reflects increase in cash
Hence, the cash is increased by $115,000 during the month of October.
Answers
Answer:
C. $77,000
Explanation:
Calculation for the amount of liabilities
Using this formula
Amount of liabilities=(Cash+Account receivable +Equipment) -Equity
Let plug in the formula
Amount of liabilities=($39,000+$45,000+$80,000)-$87,000
Amount of liabilities=$164,000-$87,000
Amount of liabilities=$77,000
Therefore the Amount of liabilities will be $77,000
Final answer:
To determine the company's liabilities, you apply the fundamental accounting equation (Assets = Liabilities + Equity). In this case, the total liabilities amount to $77,000.
Explanation:
The amount of liabilities a company has can be determined by a key equation in financial accounting: Assets = Liabilities + Equity. This company's total assets are calculated as follows: cash ($39,000) + accounts receivable ($45,000) + equipment ($80,000) = $164,000. Knowing this and considering that Equity is $87,000, we can rearrange the equation to solve for Liabilities: Liabilities = Assets - Equity, which results in: Liabilities = $164,000 - $87,000 = $77,000. So the answer is C. $77,000.
Learn more about Liabilities here:
#SPJ6
Answers
Answer:
$5,325
Explanation:
Disposable personal income is the income that remain after paying all personal taxes and purchase of final expenditure on goods and services.
Disposable personal Income = Personal Income of the consumers - Personal Taxes paid by the consumers
Disposable personal Income = $7,863 - $2,538
Disposable personal Income = $5,325
So, the disposable personal Income for the individual is $5,325.
Answers
Answer:
Fixed Cost 216,640
Explanation:
The first step is calculate the difference between activity levels
This tell us 25 units generated cost for 154,000
154,000 / 25 = Variable Cost = 6,250
Now we use either the low or high values to solve for fixedcost:
total = variable + fixed
fixed = total - variable
HIGH
Total Cost 500,000
Variable 283,360 (6,250 x 46)
Fixed Cost 216,640
LOW
Total Cost 346,000
Variable 129,360 (6,250 x 21)
Fixed Cost 216,640
Answers
Answer:
d. The apartment is right next to the mailboxes.
Explanation:
As it is mentioned in the statement that every one knows where Ursula lives and also everyone knows her face. These things make it impossible for the first three statements to be true.
a. If her apartment is in the back corner, she will have interaction with people only while getting out and into the apartment which will not ensure that everyone will know her.
b. A door opening to a private hallway still doesn't ensure that she is this much social.
c. Upstair and far from stairwell also tells that only few people will know her, not all.
d. This one is true as she lives right next to mailboxes and every person in apartment tends to check their mailboxes and probability of knowing her face and where she lives is the highest.