McKinney Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period. In that period, four set-ups were required for color changes. All units of Product Q are black, which is the color in the process at the beginning of the period. A set-up was made for 1,000 blue units of Product Z; a set-up was made for 4,500 red units of Product Z; a set- up was made for 500 green units of Product Z. A set-up was then made to return the process to its standard black coloration and the units of Product Q were run. Each set-up costs $500. Refer to McKinney Company. If set-up cost is assigned on a volume basis for the department, what is the approximate per-unit set-up cost for Product Z? Select one: a. $.036 Ob. None of the responses are correct c. $.010 d. $.040

McKinney Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period. In that period, four set-ups were required for color changes. All units of Product Q are black, which is the color in the process at the beginning of the period. A set-up was made for 1,000 blue units of Product Z; a set-up was made for 4,500 red units of Product Z; a set- up was made for 500 green units of Product Z. A set-up was then made to return the process to its standard black coloration and the units of Product Q were run. Each set-up costs $500. Refer to McKinney Company. If set-up cost is assigned on a volume basis for the department, what is the approximate per-unit set-up cost for Product Z? Select one: a. $.036 Ob. None of the responses are correct c. $.010 d. $.040

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Lawn Products produces two products (X and Y) and a by-product (Z) from a joint process using a raw material (Alpha). The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 23,000 pounds of Alpha at a total cost of $99,000. The output of the process consisted of 28,800 units of product X, 35,200 units of product Y, and 7,100 units of by-product Z. By-product Z can be sold for $12,000. This is considered to be its net realizable value, which is deducted from the processing costs of the main products. Required: What amount of joint costs should be assigned to each of product X and product Y? Product X Product Y Joint Costs
The Converting Department of Comfy Touch Towel and Tissue Company had 2,600 units in work in process at the beginning of the period, which were 35% complete. During the period, 23,800 units were completed and transferred to the Packing Department. There were 7,400 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount box does not require an entry, leave it blank. Comfy Touch Towel and Tissue Company Number of Equivalent Units of Production Inventory in process, beginning Started and completed Transferred to Packing Department Inventory in process, ending Total Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
The Converting Department of Toren Company had 560 units in work in process at the beginning of the period, which were 75% complete. During the period, 11,600 units were completed and transferred to the Packing Department. There were 640 units in process at the end of the period, which were 30% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0". Toren Company Number of Equivalent Units of Production Line Item Description Inventory in process, beginning Started and completed Transferred to Packing Department Inventory in process, ending Total Feedback Whole Units 560 11,040 11,600 ✓ 640 ✓ 12,240 ✓ Direct Materials Conversion Equivalent Units Equivalent Units 0✔ 140 ✓ 11,040 ✔ 11,180 ✔ 11,040 11,040 ✔ 640 ✔ 11,680 ✔ Check My Work When are the materials added to the units? How much more needs to be done to the…
The Mixing Department of Foods for You had 50,000 units to account for in October. Of the 50,000 units, 15,000 units were completed and transferred to the next department, and 35,000 units were 45% complete for conversion work. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the mixing process and the company uses the weighted-average method. Compute the total equivalent units of production for direct materials and conversion costs for October. Foods for You Production Cost Report - Mixing Department (Partial) Month Ended October 31 UNITS Units accounted for: Completed and transferred out Ending work-in-process Total units accounted for Physical Units 15,000 35,000 50,000 Equivalent Units Direct Materials 15,000 35,000 50,000 Conversion Costs 15,000 15000 35000 ...
The Bottling Department of Mountain Springs Water Company had 5,000 liters in beginning work in process inventory (20% complete). During the period, 58,000 liters were completed. The ending work in process inventory was 3,000 liters (90% complete). What are the equivalent units for conversion costs under the FIFO method? equivalent units for conversion costs
Silva Coporation uses the weighted average process costing method. The Mixing Department at Silva had 17,000 units in beginning inventory. These units contained $70,000 in direct materials, $80,000 in direct labor, and $60,000 in overhead. During the period, the department incurred costs of $320,000 in direct materials, $400,000 in direct labor and $200,000 in overhead and started 80,000 units. Ending inventory consisted of 6,000 units which were 100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead. What is the cost per equivalent unit for direct labor (rounded to the nearest cent)? O $5.28 O $5.11 O $4.94 $0.86
The Converting Department of Soft Touch Towel and Tissue Company had 920 units in work in process at the beginning of the period, which were 60% complete. During the period, 19,200 units were completed and transferred to the Packing Department. There were 1,040 units in process at the end of the period, which were 30% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0". Soft Touch Towel and Tissue Company Number of Equivalent Units of Production Whole Units Direct MaterialsEquivalent Units ConversionEquivalent Units Inventory in process, beginning fill in the blank 1 fill in the blank 2 fill in the blank 3 Started and completed fill in the blank 4 fill in the blank 5 fill in the blank 6 Transferred to Packing Department fill in the blank 7 fill in the blank 8 fill in the blank 9…
Stone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical Units Percent Complete for Conversion Beginning work in process 68,000 55% Ending work in process 91,000 70% Stone adds all materials at the beginning of its manufacturing process. During the month, it started 178,000 units. Required: Using the FIFO method, reconcile the number of physical units. Using the FIFO method, calculate the number of equivalent units.
s
Lawn Products produces two products (X and Y) and a by-product (Z) from a joint process using a raw material (Alpha). The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 26,000 pounds of Alpha at a total cost of $102,000. The output of the process consisted of 30,150 units of product X, 36,850 units of product Y, and 7,400 units of by-product Z. By-product Z can be sold for $10,800. This is considered to be its net realizable value, which is deducted from the processing costs of the main products. Required: What amount of joint costs should be assigned to each of product X and product Y?
The Mixing Department of Yummy FoodsYummy Foods had 60,000equivalent units of materials for October.Of the 60,000 units, 20,000 units were completed and transferred to the next department, and 40,000 units were 50% complete. Yummy Foods'sYummy Foods's costs per equivalent unit of production are $ 0.70 for direct materials and $0.45 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the weighted-average method. Calculate the cost of the 20,000 units completed and transferred out and the 40,000 units, 50% complete, in the ending Work-in-Process Inventory.
Brightmore Corporation manufactures three styles of lighting fixtures using five sequential operations. Within each operation, regardless of the style of fixture produced, the same procedures are used to perform that operation (so that time and costs are the same). All direct materials are added for each batch at the beginning of the operation for that batch. During June, 1,500 units of Style A, 500 units of Style B, and 1,000 units of Style C were started in the first operation; all were completed and transferred to the second operation, except 500 units of Style C which were 60% complete as to conversion costs. There was no work in process on June 1. Following are production costs for June: Direct Labor $18,000 Overhead 10,000 Direct Materials: Style A 20,000 Style B 10,000 Style C 30.000 Total Costs $88,000 Required: 1. Compute the total cost of work completed and transferred to the second operation in June for each of the three styles of lighting fixtures produced. 2. Compute the…