Carter Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.Work in process, beginning: Units in beginning work-in-process inventory 400Materials costs $6,900Conversion costs $2,500Percentage complete for materials 80%Percentage complete for conversion 15%Units started into production during the month 6,000Units transferred to the next department during the month 5,800Materials costs added during the month $112,500Conversion costs added during the month $210,300Ending work in process:Units in ending work-in-process inventory 1,400Percentage complete for materials 70%Percentage complete for conversion 40%Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department.I would like to know if I am correct: Equivalent Units (Materials) = 5,800 units + (400 + 6,000 - 5,800) x 70% = 6,220 units
Good day!Actually, this problem has some sort of issue. You will notice that the supposed ending inventory is 600 units (400 + 6,000 - 5,000).However, there is an added information that says--Units in ending work-in-process inventory 1,400The computation you supplied is correct but I strongly suggest for you to cite the error to your instructor and provide both your computation and this supplemental computation:5,800 units + (1,400 units x 70%) = 6,780 unitsThank you so much! :)
did you receive my other question? you answered the same question previously for someone else & I wondered if you could share that answer with me.(Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $375,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of $50,000 at the end of 10 years. The machinery will also need a $35,000 overhaul at the end of Year 6. A $40,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $85,000 per year for each of the 10 years. Axillar's discount rate is 16%. Required: (a) What is the net present value of this investment opportunity? (b) Based on your answer to (a) above, should Axillar go ahead with the new conditioning shampoo?
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