Question
Please type the answer by the computer, so I can see it clearly, thank you!!! Golden Tiger Limited (GTL) is a company that specializes in
Please type the answer by the computer, so I can see it clearly, thank you!!!
Golden Tiger Limited (GTL) is a company that specializes in surgical masks. GTL provided the data, and their process costing system employs the weighted-average technique. The following information pertains to the company's first processing department's operations in February 2022.
According to the company's records, the supplies and conversion costs for starting work in process inventory were $68,000 and $29,000, respectively. During the month, the agency spent $400,000 on additional supplies and $200,000 on conversion costs.
Physical Units 5,000 42,000 Percent Complete Materials Conversion Cost 70% 55% Work in process, 1 February Units started into production during February Units completed during February and transferred to the next department Work in process, 28 February 45,000 2,000 90% 40% Required: Using the weighted average method, for the month of February: (a) Calculate the number of equivalent units of production for materials and conversion costs. (2 marks) (b) Calculate the total cost per equivalent unit. (2 marks) (c) Determine the total cost of units transferred out of the department. (3 marks) (d) Determine the total cost of ending work-in-process inventory. (3 marks) (e) Prepare a cost reconciliation report for each process and in total. (3 marks) (f) Explain the cause of underapplied or overapplied overhead. (3 marks) (g) After the Chinese New Year of 2022, Hong Kong faces its worst outbreak of the pandemic. In the recent weekly meeting, the Marketing Director suggests donating surgical masks to grassroots families to boost company's image. The Sales Director, on the other hand, recommends taking the opportunity of increase in public demand to raise the selling price in order to maximize company's profits. As the CEO of GTL, how would you decide on which proposal to choose? (9 marks)Step by Step Solution
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