giordanolucia18
07.04.2020 •
Business
Howorth Dental Products is a London-based producer of a patented anti-microbial dental floss. All raw material is introduced at the beginning of the production process, but considerable processing time is needed to create the anti-microbial qualities of the specially designed floss. Howorth measures output in meters of floss and applies the weighted-average process costing method. The following information is available for a recent period:
Beginning work in process inventory:
141,000 meters at a cost of £46,100 for direct materials, £25,000 for direct labor, and £25,000 for factory overhead. The conversion process was 60% complete.
Units started into production: 261,000 meters
Units completed and transferred to finished goods: 383,000 meters
Ending work in process inventory: 19,000 meters, 35% complete
Additional costs incurred during the period:
Direct materials, £85,800
Direct labor, £98,300
Factory overhead, £98,700
Prepare a cost of production report for Howorth.
A.
Equivalent units of direct material
402,000
Equivalent units of direct labor
389,650
Equivalent units of overhead
389,650
Costs per equivalent unit
$0.962
Transferred to Finished Goods
$368,446
Total Ending Work in Process
$10,449
Total Cost Allocation
$378,895
B.
Equivalent units of direct material
413,000
Equivalent units of direct labor
396,350
Equivalent units of overhead
392,350
Costs per equivalent unit
$0.9759
Transferred to Finished Goods
$46,057
Total Ending Work in Process
$10,343
Total Cost Allocation
$478,400
C.
Equivalent units of direct material
401,000
Equivalent units of direct labor
378,350
Equivalent units of overhead
382,350
Costs per equivalent unit
$0.9439
Transferred to Finished Goods
$367,657
Total Ending Work in Process
$10,123
Total Cost Allocation
$558,160
D.
Equivalent units of direct material
425,000
Equivalent units of direct labor
395,350
Equivalent units of overhead
398,350
Costs per equivalent unit
$0.9539
Transferred to Finished Goods
$367,647
Total Ending Work in Process
$220,323
Total Cost Allocation
$587,170
E.
Equivalent units of direct material
400,000
Equivalent units of direct labor
364,350
Equivalent units of overhead
322,350
Costs per equivalent unit
$0.9439
Transferred to Finished Goods
$347,977
Total Ending Work in Process
$331,763
Total Cost Allocation
$678,430
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Ответ:
Choice A is the correct answer
Explanation:
Howorth Dental Products
Cost of Production Report
Equivalent Units Materials Conversion Costs
Finished Goods 383000 383000
Ending WIP 19000 6650 ( 19000* 35%)
Total Equivalent Units 402,000 389650
Costs Material D.LAbor FOH
Preceding Department 46,100 25,000 25000
Added 85,800 98,300 98,700
Total Costs 131,900 123,300 123,700
Material Costs Per Equivalent Unit = 131,900/ 402,000= 0.328
Direct LAbor Costs Per Equivalent Unit = 123,300/ 389,650=0.316
FOH Costs Per Equivalent Unit = 123,700/ 389,650=0.317
Total Cost per Equivalent unit = 0.328 + 0.316+0.317= 0.961≅ 0.962 (rounding would give a difference)
Costs Transferred to Finished Goods = 0.962* 383,000= $368,446
Costs OF Ending work in Process = 0.328 * 19,000 + 0.316* 6650 + 0.317 * 6650
Costs of Ending WIP= 6232 +2108.5+ 2101.4= 10,441.9
Total Cost Allocation= 368,446 + 10,441.9= 378,887.9
Equivalent units of direct material 402,000
Equivalent units of direct labor 389,650
Equivalent units of overhead 389,650
Costs per equivalent unit $0.962
Transferred to Finished Goods $368,446
Total Ending Work in Process $10,449
Total Cost Allocation $378,895
There's a minute difference in the WIP ending Inventory Costs ( 10449 - 10441.9 = 7.1)and Total Costs ($378,895-378,887.9= 7.1) which is only due to rounding off. If you round off you will get the exact figures as given in the option.
Ответ:
The correct answer is letter "B": 10 years .
Explanation:
The standard repayment method of student loans is the most commonly used among college borrowers because most of them do not choose one repayment plan at the moment of selecting the loan. The standard repayment term is defaulted by the creditor in 120 months or 10 years.