E. The Cutting Department has 5,000 units in process at the end of September that are 100% complete for direct materials and 55% complete for conversion costs.
Calculate the equivalent units of production for direct materials and conversion costs.
Data Table -
Job Date Cost of Job Costs Added
No. Started Finished Sold at September 30 in October
9103 9112 9113 15 1,900
9103 9130 10101 1,900
9111r 10124 101.21r 100 $
9129 10129 11103 900
10109 10112 10114
10123 111 00 11109
1il'li'hich is not a characteristic of management accounting information?
. Emphasizes relevance
. Emphasizes the external financial statements
. Focuses on the future
"'23- D. Provides detailed information about individual parts of the companv
Grav Accounting pavs Jack Smith $01200 per vear. Assume that Grays accountants are expected to work a total of 0,000 direct labor hours in 2016. Grav'
estimated total indirect costs are $400,000 and the allocation lease used is direct labor hours.
Top managers of Rouse Industries predicted 2016 sales of 14,400 units of its product at a unit price of $9.50. Actual sales for the vear were 14,000 units at $11.50
each. Variable costs were budgeted at $2.?0 per unit, and actual variable costs were $2.00
Production Cost Report Finishing Department
Month Ended September 30. 201B
Whole Transferred Direct Conversion
UNITS Units In Materials Costs
Units to account tor.
Beginning workinprocess 9,000
Started in production 13.000
0 Data Table - X
Static budget variable overhead 5': 3,640
Static budget fixed overhead 1ft 20,120
Static budget direct labor hours T20 hours
Static budget numberof units 20,000 units
Standard direct labor hours 0.020 hours per fender
Bargain Fender is
Production Cost Report-Mixing Department
Beginning 1uliiorizinPriocess Inventory (20% complete for direct materials; T001: complete
H'l EdEd sermber 3D- 21 for conversion costs) 0,000 units
Equivalent UNITE Transferred in from Mix
Congratulations! You have won a state lottery. The state lottery offers you the following [aftertax payout options:
Option #1: $15,000,000 after fiye years
Option #2: $2,300,000 per year for fiye years
Option #3: $14,000,000 after three years