Quick Ratio/ Acid test ratio: Acid test ration is also called Quick ratio. This ratio is calculated by dividing the quick assets (Cash, Cash equivalents, Short term investments and current receivables) by total current liabilities for the year. The formula for Acid test ratio is as follows: A c i d t e s t r a t i o = ( C a s h + C a s h e q u i v a l e n t s + S h o r t t e r m i n v e s t m e n t s + A c c o u n t s r e c e i v a b l e s ) C u r r e n t L i a b i l i t i e s Cash ratio: Cash ratio is calculated by dividing and cash and cash equivalents by the total current liabilities. The formula for Cash ratio is as follows: Cash Ratio = Cash and cash equivalents/ Current liabilities To calculate: The Quick and Cash ratio of Under Armour and Columbia Sportswear for the year 2016 and 2015.

Question

The output of a company's mixing department during the period consists of 24,800 units completed and transferred out, and 14,300 units in ending Work in Process that were 30% complete as to materials and conversion costs. The beginning inventory was 16,800 units that were 10% complete as to materials and conversion costs. Under the weighted-average method, what are the equivalent units of production for materials? a. 30,770 b. 29,090 c. 24,800 d. 4,290

Answer 1

Question

Chapter 8, Problem 84.5C

To determine

Concept introduction:

Quick Ratio/ Acid test ratio:

Acid test ration is also called Quick ratio. This ratio is calculated by dividing the quick assets (Cash, Cash equivalents, Short term investments and current receivables) by total current liabilities for the year. The formula for Acid test ratio is as follows:

Acid test ratio = (Cash + Cash equivalents + Short term investments + Accounts receivables) Current Liabilities

Cash ratio:

Cash ratio is calculated by dividing and cash and cash equivalents by the total current liabilities. The formula for Cash ratio is as follows:

Cash Ratio = Cash and cash equivalents/ Current liabilities

To calculate:

The Quick and Cash ratio of Under Armour and Columbia Sportswear for the year 2016 and 2015.

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The output of a company's mixing department during the period consists of 24,800 units completed and transferred out, and 14,300 units in ending Work in Process that were 30% complete as to materials and conversion costs. The beginning inventory was 16,800 units that were 10% complete as to materials and conversion costs. Under the weighted-average method, what are the equivalent units of production for materials? a. 30,770 b. 29,090 c. 24,800 d. 4,290

General Accounting

On March 1, 2019, Baltimore Company's beginning work in process inventory had 6,000 units. This is its only production department. Beginning WIP units were 50% complete to conversion costs. Baltimore introduces direct materials at the beginning of the production process. During March, a total of 23,200 units were started and the ending WIP inventory had 8,600 units which were 30% complete to conversion costs. Baltimore uses the weighted average method. Use this information to determine for March 2019 the equivalent units of production for conversion costs.