onlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory, 30,000 partially complete gallons. Transferred out, 157,500 gallons. Ending inventory (materials are 10 percent complete; conversion costs are 20 percent complete). Started this month, 180,000 gallons. Required: a. Compute the equivalent units for materials using the weighted-average method. b. Compute the equivalent units for conversion costs using the weighted-average method.
Answers
Answer:
a. 162,750 gallons
b. 168,000 gallons
Explanation:
Step 1 Determine the Units of Closing Work In Process Inventory
Units of Closing Work In Process = Beginning inventory units + units Started this month - units Transferred out
= 30,000+180,000-157,500
= 52,500
Step 2 Determine the equivalent units for materials
Note : materials are 10 percent complete in Units of Closing Work In Process
Units of Closing Work In Process ( 52,500 ×10%) = 5,250
Units Transferred out ( 157,500 ×100%) =157,500
Total =162,750
Step 3 Determine the equivalent units for conversion costs
Note : conversion costs are 20 percent complete in Units of Closing Work In Process
Units of Closing Work In Process ( 52,500 ×20%) = 10,500
Units Transferred out ( 157,500 ×100%) =157,500
Total =168,000
Answer:
The equivalent units for conversion costs using the weighted-average method are 168,000
The equivalent units for materials using the weighted-average method are 162,750
Explanation:
onlon Chemicals
Equivalent units can be calculated by the following
Particulars Units % of Completion Equivalent Units
Mat. Con. Costs Materials C. Costs
Transferred out, 157,500 100 100 157,500 157,500
Ending inventory, 52,500 10 20 5250 10,500
Total Equivalent Units 162,750 168,000
Working
Ending Inventory= Opening + Started - Transferred Out
Ending Inventory=30,000 +180,000 -157,500 = 52,500 gallons
The equivalent units are calculated by two ways either by adding ending inventory and transferred out units or by adding beginning inventory with units started.
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B)Using exponential smoothing with ? = 0.20, if the exponential forecast for week 3 was estimated as the average of the first two weeks [(315 + 415)/2 = 365], what would you forecast week 5 to be? (Round your answer to the nearest whole number.)
Week 1 315
Week 2 415
Week 3 615
Week 4 715
Answers
Answer: A. 582 ; B. 475
Explanation:
A. Three week moving average
three moving average requires us to take the last three weeks forecast in calculating the forecast for following week, to calculate week 5 forecast we will start from week 2 to week 4.
Week 2 = 415
Week 3 = 615
Week 4 = 715
Three week moving average = (WEEK 2 + Week 3 + Week 4)/N
Three week moving average = (415 + 615 + 715)/3
Three week moving average = 1745/3 = 581.6667 = 582
using three week moving average the forecast for week 5 is 582
B.Exponential smoothing
Exponential smoothing forecast for week 3 is 365, to calculate the forecast of week 5 we need to find a forecast for week 4 first using exponential smoothing
S = smoothing Factor = 0.2
D = most recent forecast (week 3) = 615
F = most recent forecast under exponential smoothing = 365
Forecast(week 4) = (D × S) + (F × (1 - S))
Forecast(week 4) = (615 × 0.20) + (365 × (1 - 0.20))
Forecast(week 4) = 123 + 292 = 415
The forecast for week 4 using exponential smoothing is 415
Week 5 forecast calculation
S = smoothing Factor = 0.2
D = most recent forecast (week 4) = 715
F = most recent forecast under exponential smoothing = 415
Forecast(week 5) = (D × S) + (F × (1 - S))
Forecast(week 5) = (715 × 0.20) + (415 - (1 - 0.20))
Forecast(week 5) = 143 + 332= 475
forecast for week 5 is 475
Final answer:
The forecast for the next week using a three-week moving average would be 448 items. Using exponential smoothing with a smoothing constant of 0.20, the forecast for week 5 would be 435 items.
Explanation:
To answer both parts of your question:
A) The three-week moving average is calculated by taking the average of the past 3 weeks, so for week 4, it would be the average of weeks 1, 2, and 3: [(315 + 415 + 615)/3 = 448]. Therefore, the forecast for week 4 using a three-week moving average would be 448 items, rounded to the nearest whole number.
B)Exponential smoothing requires the use of a smoothing constant, in this case, ? = 0.20, and the previous actual and forecasted values. Using the given exponential forecast for week 3 of 365, the forecasted demand for week 5 would be calculated as follows: Forecast = ? * Actual_previous + (1-?) * Forecast_previous = 0.20 * 715 + (1-0.20) * 365 = 435. Therefore, your week 5 forecast would be 435 items, rounded to the nearest whole number.
Learn more about Demand Forecasting here:
#SPJ3
Answers
Answer:
The correct answer is letter "B": Make the customers less sensitive to the price.
Explanation:
There are several reasons that could make products become elastic or inelastic. Reputation typically makes goods and services be considered inelastic. These types of products do not see a change in their quantity demanded in front of changes in price.
Thus, if a Swiss watch company promotes their history of superior craftsmanship is attempting to aware consumers about its watch quality and reputation so if they decide to increase prices consumers will be less sensitive to the change.
b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.
c. The term Eurobond applies only to foreign bonds denominated in U.S. currency.
d. Any bond sold outside the country of the borrower is called an international bond.
e. Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.
Answers
Answer:
b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.
Explanation:
A Eurodollar is a bond issued by a foreign company in US dollars instead of heir own domestic currency. Eurodollars are issued and redeemable at the foreign country, no the US. It has nothing to do with money deposited in banks outside of the US, since it refers to bonds, not deposits.
Answers
Answer:
The correct solution is "$397000".
Explanation:
Given:
Net income,
= $377000
Depreciation,
= $59000
Accounts receivable increase,
= $27000
Accounts payable decreased,
= $12000
Now,
From operating activities, the cash flow will be:
= By putting the values, we get
=
= ($)
Answers
Answer:
See explanation section
Explanation:
Requirement A
Insto Photo Company
Journal Entries
Date Accounts Name Debit Credit
December 1, 2016 Inventory $25,000
Notes payable $25,000
Note: As the merchandise company issued a note for the credit purchase of merchandise inventory, notes payable is used instead of accounts payable.
Dec. 31, 2016 Interest expense $250
Interest payable $250
Note: Adjusting entry is needed as the fiscal year is ended on 31st December, therefore, there will be an accrued interest expense to be paid for one month. The calculation of interest expense = $25,000 × 12% × (30 ÷ 360) [assuming 1 year = 360 days, 1 month = 30 days]. = $250 for one month's accrual.
Requirement B
March 31, 2017 Interest expense $ 750
Interest payable $ 250
Notes payable $25,000
Cash $26,000
Note: At the end of the maturity date, the buyer will pay all the bills of the notes plus interest. Interest payable becomes debit as it did not pay by the buyer on 31st December, 2016. The remaining interest = $25,000 × 12% × (90 ÷ 360) = $750. Total cash will be paid after the maturity = $25,000 + $250 + $750 = $26,000.
a. $146,250.
b. $33,750.
c. $67,500.
d. $180,000.
Answers
Answer:
Option (a) is correct.
Explanation:
Given that,
Net income = $600,000
Difference between fair value and carrying value = $112,500
70%-owned subsidiary of Pickle Corporation.
Non-controlling interest in net income:
= [Net income - Difference between fair value and carrying value] × 0.3
= [$600,000 - $112,500] × 0.3
= $487,500 × 0.3
= $146,250