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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Hello Can you please help me with the following 4 questions of my homework which is due tommorow. I missed the class and donot understand the questions. Thank You.
1).In Process 3, crush and screen limestone rock, 340 tons of limestone rock were transported to the plant during March. There was no beginning inventory of rock. During March, 220 tons were crushed, screened, and stocked. At the end of March, 120 tons of rock were 60% crushed and screened. Direct labour and overhead are incurred evenly during the crushing and screening process.
To find
a.Confirm your understanding of the equivalent units concept by computing the equivalent units for material, direct labour, and overhead for Sara & Will.
Flow of Production Physical Units Direct Material Conversion
Started and Completed
Work in process, ending inventory
Units Accounted For
Work Done to Date
2).A department of Rochester Textiles produces cotton fabric. All direct materials are introduced at the start of the process. Conversion costs are incurred uniformly throughout the process.
In April, there was no beginning inventory. Units started, completed, and transferred were 685,000. Units in process on April 30 were 238,000. Each unit in ending work in process was 65% converted. Costs incurred during April were direct materials at €5,353,400 and conversion costs at €2,267,190.
a.Compute the total work done in equivalent units and the unit cost for April.
b.Compute the cost of units completed and transferred. Also compute the cost of units in ending work in process.
Flow of Production Physical Units Direct Material Conversion
Started and Completed
Work in process, ending inventory
Units Accounted For
Work Done to Date
3) The beginning inventory was 80% complete regarding direct materials and 40% complete regarding conversion costs. The ending inventory was 20% complete regarding direct materials and 10% complete regarding conversion costs.
b.Prepare a schedule of equivalent units for the work done to date.
Begin by summarising the flow of physical units and then calculate the output in terms of equivalents units.
Consider the following:
Physical Units
Started in 20X1 90,000
Completed in 20X1 80,000
Ending inventory, 40,000
work in process
Beginning inventory, 30,000
work in process
Flow of Production Physical Units Direct Material Conversion
Started and Completed
Work in process, ending inventory
Units Accounted For
Work Done to Date
4). The tax authorities must process millions of income tax returns yearly. When the taxpayer sends in a return, documents such as withholding statements and checks are matched against the data submitted. Then, various other inspections of the data are conducted. Some returns are more complicated than others so the expected time allowed to process a return is geared to an "average" return.
Some work-measurement experts have been closely monitoring the processing at a particular branch. They are seeking ways to improve productivity.
Suppose 2 million returns were received on April 15. On April 22, the work-measurement teams discovered that all supplies (punched cards, inspection check-sheets, and so on) had been affixed to the returns, but 60% of the returns still had to undergo a final inspection. The other returns were fully completed.
Required to find
a. Suppose the final inspection represents 25% of the overall processing time in this process. Compute the total work done in terms of equivalent units.
b.The materials and supplies consumed were €425,000. For these calculations, materials and supplies are regarded just like direct materials. The conversion costs were €4,840,000. Compute the unit costs of materials and supplies and of conversion.
c.Compute the cost of the tax returns not yet completely processed.
Flow of Production Physical Units Direct Material Conversion
Started and Completed
Work in process, ending inventory
Units Accounted For
Work Done to Date
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