1. Assurer Inc. uses the weighted-average method in its process


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I have attached a sheet with the questions. I really need this within an hour though. Because I have class tonight. 1. Assurer Inc. uses the weighted-average method in its process costing system. The following data concern the operation of the company’s first processing department for a recent month. Work in process, beginning Units in process 300 Percent complete with respect to materials 80% Percent complete with respect to conversion 70% Costs in the beginning inventory: Materials cost $ 1,368 Conversion cost 8,064 Units started into production during the month 11,000 Units completed and transferred out 11,000 Costs added to production during the month Materials cost $ 64,948 Conversion cost 412,179 Work in process, ending: Units in process 300 Percent complete with respect to materials 80% Percent complete with respect to conversion 10% Required (10 points) Determine the equivalent units of production Determine the cost per equivalent unit Determine the cost of ending work in process inventory. Determine the cost of units transferred to the next department 2. The sales manager at Burton Company is convinced that a $30,000 expenditure on advertising will increase unit sales by 50% without any other increase in fixed expenses. The sales manager has asked you, the Chief Financial Officer, to determine what the impact will be on the company’s net operating income if he is correct. Burton Company’s contribution format income statement for the most recent year is below. Show all of your work. (10 points) Sales (13,000 units) $325,000 Variable expenses 221,000 Contribution Margin 104,000 Fixed Expenses 117,000 Net operating loss $( 13,000) 3. DuraDisc Corporation produces two types of compact discs: standard and high-grade. The standard CDs are used primarily in computer drives and are designed for data storage rather than accurate sound reproduction. The company only recently began producing the higher-quality, high- grade model to enter the lucrative music-recording market. Since the new product was introduced, profits have seen only a modest increase. Management expected a significant profit increase related to rapidly growing sales of the high-grade discs. Management believes the accounting system may not be accurately allocating costs to products. Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on the direct labor costs in the products. Last year’s manufacturing overhead was $880,000, based on production of 320,000 standard CDs and 120,000 high-grade CDs. Selling prices last year averaged $3.60 per standard disc and $5.80 per high-grade disc. Direct labor and direct materials costs for last year were as follows: Standard High-Grade Total Direct Labor $160,000 $ 80,000 $240,000 Direct Materials $125,000 $114,000 $239,000 Management believes three activities cause overhead costs. The cost drivers and related costs are as follows: Activity Level Cost Assigned Standard High-Grade Total Number of Production Runs $300,000 20 10 30 Quality Tests Performed $360,000 12 18 30 Shipping Orders Processed $220,000 100 50 150 Total Overhead $880,000 Required (20 point) a. How much of the overhead will be assigned to each product if the three cost drivers are used to allocate overhead? What would be the cost per unit produced for each product? b. How much of the overhead would have been assigned to each product if direct labor cost had been used to allocate overhead? What would have been the total cost per unit produced for each product? c. How might the results explain why profits did not increase as much as management expected? HW questions.doc 1. Assurer Inc. uses the weighted-average method in its process costing system. The following data concern the operation of the company’s first processing department for a recent month. Work in process, beginning Units in process Percent complete with respect to m

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