Basil Manufacturing Uses a Weighted-Average Process-Costing System

question 10

Essay

Basil Manufacturing uses a weighted-average process-costing system. The following figures pertain to July:

All materials are introduced at the start of the process, and conversion cost is incurred evenly throughout production. The company used direct materials that cost $640,000; conversion amounted to $8 per equivalent unit.
Required:
A. Calculate the direct materials cost per equivalent unit.
B. Calculate the cost of units completed and transferred.
C. What percentage of conversion work will be performed on the 40,000-unit ending work-in-process inventory during August?
D. In all likelihood, were all of the 120,000 completed units begun in July? Explain.

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Definitions:

Merchandise Quality

Merchandise Quality pertains to the degree to which a product meets the standards and expectations of its consumers in terms of durability, reliability, and performance.

Marketing Activities

Actions or tasks aimed at promoting and selling products or services, including advertising, content marketing, and product development.

Marketing Metrics

Quantitative measures used to track the performance of marketing activities and campaigns.

Store Visit

The act of potential customers or consumers physically visiting a retail or merchandise location to purchase or inspect products.