Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alvis Construction Supply Company has a department that manufactures wood trusses ( wood frames used in the construction industry ) . The following information is

Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February:
Work-in-process inventory, February                                     14,600 trusses
Direct materials:                                                                                    100% complete $ 11,080
Conversion:                                                                                              30% complete $ 15,858
Units started during February                                                        18,600 trusses
Units completed during February and transferred out      17,600 trusses
Work-in-process inventory, February 29
Direct materials:                                                                                     100% complete
Conversion:                                                                                 30% complete
Costs incurred during February
Direct materials                                                                          $ 59,640
Conversion                                                                                   $ 92,692
Required
Using the weighted-average method, calculate the following:
1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.)
1-b. Cost of goods completed and transferred out. (Round \"Cost per EU\" to 4 decimal places. Round final answer to nearest whole dollars.)
1-c. Costs remaining in the Work-in-Process Inventory account. (Round \"Cost per EU\" to 4 decimal places. Do not round other intermediate calculations. Round final answer to nearest whole dollars.)
2. Assume that you are the companys controller. The production departments February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 30 to 50% to lower the unit costs, how much would unit cost be affected by this request? (Round your answer to 4 decimal places.)

Step by Step Solution

3.53 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

1a Costs per equivalent unit Beginning WIP 14600 trusses 100 direct materials 30 conversion 4380 Add... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
663d7efe6465f_966249.pdf

180 KBs PDF File

Word file Icon
663d7efe6465f_966249.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management A Strategic Emphasis

Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith

8th Edition

1259917029, 978-1259917028

More Books

Students also viewed these Accounting questions

Question

Convert the numeral to a HinduArabic numeral. A94 12

Answered: 1 week ago

Question

How effectively they make use of the diversity of their people

Answered: 1 week ago

Question

How effi ciently they use their talents and resources

Answered: 1 week ago

Question

Whether they act ethically

Answered: 1 week ago