Managerial essay

Challenges Chapter four

Trouble 4-26

Moravia Firm processes and packages cream cheese. The subsequent data have been completely compiled pertaining to the month of The spring. Conversion activity occurs consistently throughout the creation process. 1) Analysis of physical movement of models.

2) Calculation of equal units.

3) Calculation of unit costs.

4) Examination of total costs.

5) Develop a Spreadsheet: Create an Excel spreadsheet to fix all of the earlier requirements. Present how the option will change in case the following data change: the April one particular work in process costs were $27, 1000 for immediate material and, 000 intended for conversion.

1 . | | ‚‚Physical

Units|

| Work in method, April 1| 10, 000|

| Units started out during April| 100, 000|

| Total models to consideration for| one hundred ten, 000|

| Devices completed and transferred away during April| 80, 000| | Work in process, 04 30| 40, 000|

| Total units paid for for| 110, 000|

installment payments on your | | | | | |

| |

Physical Units| Percentage of Achievement with Respect to Conversion|

Comparable Units|

| | | | Direct Material|

Conversion|

| Work in procedure, April 1| 10, 000‚‚| 20%| | | | Units started during April| 100, 000‚‚| | | | | Total devices to accounts for| 110, 000‚‚| | | | | Units completed and

transmitted

out during April|

80, 000‚‚|

100%|

70, 000|

80, 000‚‚‚|

| Work in procedure, April 30| ‚30, 000‚‚| 33. 33%| ‚30, 000| ‚9, 900‚‚‚| | Total units paid for for| 110, 000‚‚| | | | | Total equivalent units| | | 110, 000| 89, 900‚‚‚|

3. | | | | |

| | Immediate Material| Conversion| ‚‚Total| | Work in method, April 1| $22, 000| $‚4, 500| $26, 500‚‚|

| Costs incurred during April| ‚198, 000| ‚158, 400| ‚356, 400‚‚| | Total costs to account for| $220, 000| $162, 900| $382, 900‚‚| | Equal units| one hundred ten, 000| 89, 900| | | Costs per equal unit| $2. 00| $1. 81| $3. 81‚‚|

4. | Expense of goods accomplished and moved out during April: | | | | | |

| (Units Transferred) *(Total Cost per equiv. unit) =| 70, 000$3. 81| $304, 961| | | |

| Price remaining in April 35 work-in-process inventory: | | | | | |

| Direct material: | | |

| | | |

| (# of equivalent models of Immediate Material ) * ( Cost per Equivalent Product of Direct Material) =| 30, 000$2. 00| $60, 000| | | | |

| Conversion: | | |

| | | |

| (# of equal units of conversion) 2. (Cost every equivalent product of conversion) =| 9, 900$1. 81| ‚ 17, 939| | | | |

| Total cost of Apr 30 work in process| $77, 919| | | | |

| Check: Cost of items completed and transferred out| $304, 961| | Expense of April 31 work-in-process inventory| ‚17, 939| | Total costs paid for for| $382, 900| | | |

| 5Build a Schedule: Construct a great Excel spreadsheet to solve all the preceding requirements. Show how the solution changes if the subsequent data change: the The spring 1 work in process costs were $27, 000 pertaining to direct material and $5, 000 pertaining to conversion. |

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