16-11 - 1611 1626 (continued) (4) ON THE BORDER FRAME...

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Unformatted text preview: 1611 1626 (continued) (4) ON THE BORDER FRAME COMPANY Income Statement For Current Year Sales $80,000 Cost of goods sold (51,250)a Gross profit $28,750 Operating expenses (18,750) Net income $10,000 a$50,500 cost of job + $750 underapplied factory overhead 1627 (1) 1,200 tanks x 100% = 1 ,200 equivalent units for conversion (2) 540 tanks x 1/3 = 180 equivalent units for conversion (3) 600 tanks x 1/2 = 300 equivalent units for conversion (4) 500 tanks x 20% = 100 440 tanks x 30% = 132 232 equivalent units for conversion (5) 400 tanks x 100% = 400 100 tanks x 75% = 75 475 equivalent units for conversion 1628 (1) 1,200 units x 100% = 1,200 equivalent units for direct materials (2) 540 units x 100% = 540 equivalent units for direct materials (3) 600 units x 100% = 600 equivalent units for direct materials (4) (500 units + 440 units) x 100% = 940 equivalent units for direct materials (5) (400 units + 100 units) x 100% = 500 equivalent units for direct materials Note: When direct materials are added at the beginning of the process, the units are 100% complete with respect to direct materials at all stages of conversion. ...
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This homework help was uploaded on 04/08/2008 for the course ACC 102 taught by Professor Drucker during the Fall '07 term at Coastal Carolina University.

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