Need Answer please let me please provide Solutions In 2017, Commodity Inc., processor of whole grain flour, had thecapacity to produce 10,000,000 pounds of product at a conversioncost per pound of $0.20. The conversion cost per pound was $0.15in 2016 (the previous year). The direct material cost per pound forboth years was $0.07 per pound and in 2017, Commodity Inc.produced 9,300,000 pounds while actual production for theprevious year was 8,600,000 pounds.What was the cost of unused capacity in 2017?

Step 1: Define Unused Capacity:The difference between the total capacity available to produce goods…

Answered: In 2017, Commodity Inc., processor of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is the company's estimated EOQ on these general accounting question?
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Partial-productivity measurement. Gable Company manufactures wallets from fabric. In 2016, Gable made 2,160,000 wallets using 1,600,000 yards of fabric. In 2016, Gable has capacity to make 2,448,000 wallets and incurs a cost of $8,568,000 for this capacity. In 2017, Gable plans to make 2,203,200 wallets, make fabric use more efficient, and reduce capacity. Suppose that in 2017 Gable makes 2,203,200 wallets, uses 1,440,000 yards of fabric, and reduces capacity to 2,295,000 wallets at a cost of $7,803,000. Q. Calculate the partial-productivity ratios for materials and conversion (capacity costs) for 2017, and compare them to a benchmark for 2016 calculated based on 2017 output.
Partial-productivity measurement. Gable Company manufactures wallets from fabric. In 2016, Gable made 2,160,000 wallets using 1,600,000 yards of fabric. In 2016, Gable has capacity to make 2,448,000 wallets and incurs a cost of $8,568,000 for this capacity. In 2017, Gable plans to make 2,203,200 wallets, make fabric use more efficient, and reduce capacity. Suppose that in 2017 Gable makes 2,203,200 wallets, uses 1,440,000 yards of fabric, and reduces capacity to 2,295,000 wallets at a cost of $7,803,000.

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