Hamilton,Inc

question 43

Essay

Hamilton,Inc.manufactures units in two processes: Production and Finishing.All direct materials are added at the beginning of the Production process,while conversion costs are incurred evenly throughout the period for both Production and Finishing.Hamilton employs three inspectors: Kasey,Chad,and Lexi.Kasey inspects direct materials before they are added to Production (two pieces of direct materials per unit).Chad inspects units when the Production process is finished,after which they are immediately transferred to Finishing.Lexi inspects units at the end of the Finishing process.This period,none of the materials or units failed inspection.At the beginning of the period,5,000 units had only "Inspected by Kasey" tags on them (these units were 70% complete),and 2,000 units had "Inspected by Kasey" and "Inspected by Chad" tags on them (these units were 60% complete).At the end of the period,7,000 units had only "Inspected by Kasey" tags on them (these units were 50% complete).1,000 units had only "Inspected by Kasey" and "Inspected by Chad" tags on them (these units were 90% complete),and 19,000 units had tags from all three inspectors on them (these units were 100% complete).In the Finishing Department,Hamilton incurred $38,000 in direct materials costs and $76,000 in conversion costs in the current period.Beginning Work in Process Inventory for the Finishing Department carried a value of $4,000 in direct materials and $3,600 in conversion costs.
Required:
Using the weighted average method,determine the number of physical units:
a.in beginning Work in Process in Production during the period.
b.started in Production during the period.
c.transferred from Production to Finishing during the period.
d.in ending Work in Process in Production during the period.
e.in beginning Work in Process in Finishing during the period.
f.in ending Work in Process in Finishing during the period.
g.completed in Finishing during the period.
Using the weighted average method,determine the number of equivalent units:
h.for direct materials for Production
i.for conversion for Production
j.for direct materials for Finishing
k.for conversion for Finishing
Using the weighted average method,determine the cost per equivalent unit:
l.for direct materials for Finishing
m.for conversion for Finishing

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Definitions:

Significant Influence

The capacity to affect the financial and operating policies of another entity without having control or full ownership, often through ownership of a sizable percentage of voting shares.

Net Income

The net profit figure for a company, achieved by subtracting all operational costs and tax liabilities from its revenue.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a portion of its profits.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, typically associated with ownership of 20-50% of voting stock.