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Required a. Prepare a Cost of Production Report for the Conversion Department for July. b. Prepare a Cost of Production Report for the Finishing Department for July. c. If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. Complete this question by entering your answers in the tabs below. Required A Required B Required C If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. (Round intermediate calculations to 2 decimal places.) Gross margin < Required B Required C >

Required a. Prepare a Cost of Production Report for the Conversion Department for July. b. Prepare a Cost of Production Report for the Finishing Department for July. c. If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. Complete this question by entering your answers in the tabs below. Required A Required B Required C If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. (Round intermediate calculations to 2 decimal places.) Gross margin < Required B Required C >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Perez Corporation makes a health beverage named Perez that is manufactured in a two-stage production process. The drink is first created in the Conversion Department where material ingredients (natural juices, supplements, preservatives, etc.) are combined. On July 1, Year 2, the company had a sufficient quantity of partially completed beverage mix in the Conversion Department to make 60,000 containers of Perez. This beginning inventory had a cost of $77,250. During July, the company added ingredients necessary to make 250,000 containers of Perez. The cost of these ingredients was $515,000. During July, liquid mix representing 240,000 containers of the beverage was transferred to the Finishing Department. The beverage mix is poured into containers and packaged for shipment in the Finishing Department. Beverage that remained in the Conversion Department at the end of July was 25 percent complete. At the beginning of July the Finishing Department had 12,000 containers of beverage mix. The cost of this mix was $27,000. The department added $28,290 of manufacturing costs (materials, labor, and overhead) during July. During July, 150,000 containers of Perez were completed. The ending inventory for this department was 45 percent complete at the end of July. Required a. Prepare a Cost of Production Report for the Conversion Department for July. b. Prepare a Cost of Production Report for the Finishing Department for July. c. If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a Cost of Production Report for the Conversion Department for July. (Round "Cost per unit" answer to 2 decimal places.) PEREZ CORPORATION Cost of Production Report Conversion Department For the month ended July 31, Year 2 Computation for Physical Units and Equivalent Units Actual Equivalent unite
Transcribed Image Text:Perez Corporation makes a health beverage named Perez that is manufactured in a two-stage production process. The drink is first created in the Conversion Department where material ingredients (natural juices, supplements, preservatives, etc.) are combined. On July 1, Year 2, the company had a sufficient quantity of partially completed beverage mix in the Conversion Department to make 60,000 containers of Perez. This beginning inventory had a cost of $77,250. During July, the company added ingredients necessary to make 250,000 containers of Perez. The cost of these ingredients was $515,000. During July, liquid mix representing 240,000 containers of the beverage was transferred to the Finishing Department. The beverage mix is poured into containers and packaged for shipment in the Finishing Department. Beverage that remained in the Conversion Department at the end of July was 25 percent complete. At the beginning of July the Finishing Department had 12,000 containers of beverage mix. The cost of this mix was $27,000. The department added $28,290 of manufacturing costs (materials, labor, and overhead) during July. During July, 150,000 containers of Perez were completed. The ending inventory for this department was 45 percent complete at the end of July. Required a. Prepare a Cost of Production Report for the Conversion Department for July. b. Prepare a Cost of Production Report for the Finishing Department for July. c. If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a Cost of Production Report for the Conversion Department for July. (Round "Cost per unit" answer to 2 decimal places.) PEREZ CORPORATION Cost of Production Report Conversion Department For the month ended July 31, Year 2 Computation for Physical Units and Equivalent Units Actual Equivalent unite
60,000 containers of Perez. This beginning inventory had a cost of $77,250. During July, the company added ingredients necessary to make 250,000 containers of Perez. The cost of these ingredients was $515,000. During July, liquid mix representing 240,000 containers of the beverage was transferred to the Finishing Department. The beverage mix is poured into containers and packaged for shipment in the Finishing Department. Beverage that remained in the Conversion Department at the end of July was 25 percent complete. At the beginning of July the Finishing Department had 12,000 containers of beverage mix. The cost of this mix was $27,000. The department added $28,290 of manufacturing costs (materials, labor, and overhead) during July. During July, 150,000 containers of Perez were completed. The ending inventory for this department was 45 percent complete at the end of July. Required a. Prepare a Cost of Production Report for the Conversion Department for July. b. Prepare a Cost of Production Report for the Finishing Department for July. c. If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. Complete this question by entering your answers in the tabs below. Required A Required B Required C If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. (Round intermediate calculations to 2 decimal places.) Gross margin < Required B Required C >
Transcribed Image Text:60,000 containers of Perez. This beginning inventory had a cost of $77,250. During July, the company added ingredients necessary to make 250,000 containers of Perez. The cost of these ingredients was $515,000. During July, liquid mix representing 240,000 containers of the beverage was transferred to the Finishing Department. The beverage mix is poured into containers and packaged for shipment in the Finishing Department. Beverage that remained in the Conversion Department at the end of July was 25 percent complete. At the beginning of July the Finishing Department had 12,000 containers of beverage mix. The cost of this mix was $27,000. The department added $28,290 of manufacturing costs (materials, labor, and overhead) during July. During July, 150,000 containers of Perez were completed. The ending inventory for this department was 45 percent complete at the end of July. Required a. Prepare a Cost of Production Report for the Conversion Department for July. b. Prepare a Cost of Production Report for the Finishing Department for July. c. If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. Complete this question by entering your answers in the tabs below. Required A Required B Required C If 100,000 containers of Perez are sold in July for $750,000, determine the company's gross margin for July. (Round intermediate calculations to 2 decimal places.) Gross margin < Required B Required C >
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