Bright Colors Company Placed 315,000 Gallons of Direct Materials into the Mixing

question 92

Essay

Bright Colors Company placed 315,000 gallons of direct materials into the mixing process. All direct materials are placed in mixing at the beginning of the process and conversion costs occur evenly during the process. Bright Colors uses weighted-average costing. The initial forecast for the end of the month was to have 75,000 gallons still in process, 15% converted as to labor and factory overhead.
Required:
a.Determine the total equivalent units (in process and transferred out) for direct materials and for conversion costs, assuming there was no beginning inventory.
b.With the installation of a new paint processing filtration device, the forecast for the end of the month was to have 50,000 gallons still in process, 70% converted as to labor and factory overhead. In this event, determine the equivalent units (in process and transferred out) for direct materials and for conversion costs, assuming there was no beginning inventory.

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Definitions:

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of the face value.

Yield To Maturity

The overall gain expected from a bond, provided it is kept until its due date, including all received interest and the principal amount's reimbursement.

Semi-Annually

Happening biannually, usually once every six months.

Face Value

Face value is the nominal value or dollar value printed on a security or a bond, representing the amount to be repaid at maturity.