Q2) (2 Pts) A company wants to price its product by using target ROR method. If the investment is estimated to be 300,000, target ROR = 15 %, expected demand is 43,125 units. What is the targeted price per unit? Table 3: Step 1 and 2 to assign cost in the next month using weighted average (case 3) Step 1 Step 2 Physical units Equivalent Units Direct material Conversion cost WIP, beginning Inventory Started during this period To account for Completed and transferred out during this period WIP, ending Inventory Accounted for Work done to date Total cost added during this period Table 4: Step 3, 4 and 5 to assign cost in the next month use Weighted average (case 3) Total Production cost Direct material Conversion cost Step 3 WIP, beginning Costs added during this period cost incurred to date Divide by equivalent units of work done in to date cost per equivalent unit of work done to date Step 4 Total cost to account for Step 5 Assignment of costs completed and transferred out WIP, ending Table 6: Step 3, 4, and 5 to assign cost in the next month use FIFO (case 3) Total Production cost Direct material Conversion cost Step 3 WIP, beginning Costs added during this period Divide by equivalent units of work done in to date cost per equivalent unit of work done to date Total cost to account for Step 4 Step 5 Assignment of costs completed and transferred out WIP, beginning Cost added to the Beginning WIP During this period Total cost from beginning WIP Started and completed Total cost of units completed and transferred out WIP, ending Total cost accounted for Q2) (2 Pts) A company wants to price its product by using target ROR method. If the investment is estimated to be 300,000, target ROR = 15 %, expected demand is 43,125 units. What is the targeted price per unit? Table 3: Step 1 and 2 to assign cost in the next month using weighted average (case 3) Step 1 Step 2 Physical units Equivalent Units Direct material Conversion cost WIP, beginning Inventory Started during this period To account for Completed and transferred out during this period WIP, ending Inventory Accounted for Work done to date Total cost added during this period Table 4: Step 3, 4 and 5 to assign cost in the next month use Weighted average (case 3) Total Production cost Direct material Conversion cost Step 3 WIP, beginning Costs added during this period cost incurred to date Divide by equivalent units of work done in to date cost per equivalent unit of work done to date Step 4 Total cost to account for Step 5 Assignment of costs completed and transferred out WIP, ending Table 6: Step 3, 4, and 5 to assign cost in the next month use FIFO (case 3) Total Production cost Direct material Conversion cost Step 3 WIP, beginning Costs added during this period Divide by equivalent units of work done in to date cost per equivalent unit of work done to date Total cost to account for Step 4 Step 5 Assignment of costs completed and transferred out WIP, beginning Cost added to the Beginning WIP During this period Total cost from beginning WIP Started and completed Total cost of units completed and transferred out WIP, ending Total cost accounted for