For Salcido,Inc

question 12

Essay

For Salcido,Inc. ,the value of beginning Work in Process Inventory was $100,000,25% of which was direct materials cost.During the period,Salcido completed work on 42,500 units,only completed 80% of the work on another 10,000 units,and incurred $80,000 in direct materials cost and $177,500 in conversion costs.Salcido adds direct materials at the beginning of their production process,and incurs conversion costs evenly throughout the process.
Required:
Calculate the following using the weighted average method for process costing.
a.Equivalent units for direct materials
b.Equivalent units for conversion costs
c.Cost per equivalent unit for direct materials
d.Cost per equivalent unit for conversion costs
e.Cost assigned to ending Work in Process Inventory
f.Cost assigned to goods completed and transferred out

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Definitions:

Correlation Coefficient

A statistical measure that indicates the extent to which two variables change together, ranging from -1 (perfectly inverse) to +1 (perfectly direct).

Expected Rates of Return

The anticipated percentage gain or loss that an investment is predicted to generate over a given period of time, taking into account both known and estimated variables.

Probability Distribution

A function that represents the likelihood of various outcomes in a random experiment.

Average Portfolio Standard Deviation

A measure of the volatility of all the assets in a portfolio, calculated as the square root of the variance of the portfolio's returns.