Midterm1 Spr2010

20 compute petparadises cost of goods sold if it

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: eased by $6,000 during January. 20. Compute PetParadise’s cost of goods sold. If it cannot be computed from the information given, describe the additional information needed to compute it. 6A:002 Spring 2010 – Midterm 1 Page 11 21. Assume that cost of goods sold is $85,000. Compute PetParadise’s operating income. 22. Ignore the information in question 21. Assume that PetParadise’s cost of goods sold is $4,500 higher than its cost of goods manufactured. Compute the amount of ending work-in-process inventory. 23. Compute the amount of raw materials available for use in January. If this cannot be determined from the data given, briefly describe the additional information needed. 6A:002 Spring 2010 – Midterm 1 Page 12 Use the following information about Off Road to answer questions 24 through 26. Off Road manufactures auto roof racks in a two-stage production process: Shaping and Plating. The Shaping Department starts with steel alloy and molds it in the shape of a roof rack. The Plating Department heats the shaped roof racks, creating an anodized finish. The Plating Department calculated the following costs per equivalent unit on its December production cost report: Cost per equivalent unit Transferred-In $217 Conversion Costs $73 It also reported the following information for the month of December. • Units in beginning work-in-process: 10,000 • Units transferred in during the period: 31,000 • Units completed during the period: 27,000 • Units in beginning work-in-process inventory were 25% complete for conversion • Units in ending work-in-process inventory were 40% complete for conversion • Selling price per roof rack: $510 24. Compute the cost assigned to the December ending work in process inventory. 25. Compute the amount of cost transferred to the finished goods inventory in December. 6A:002 Spring 2010 – Midterm 1 Page 13 26. Suppose that Plating adds a special finishing agent when its products are 50% complete for processing. This agent cost $30,000 during December. Compute the cost per equivalent unit for this agent. If you need additional information to compute cost per equivalent unit, describe the information needed. Use the following information about...
View Full Document

This note was uploaded on 09/29/2011 for the course 06A 002 taught by Professor Stuff during the Spring '11 term at University of Iowa.

Ask a homework question - tutors are online