Weather Instruments Assembles Products from Component Parts

question 60

Essay

Weather Instruments assembles products from component parts. It has two departments that process all products. During January, the beginning work in process in the assembly department was half complete as to conversion and complete as to direct materials. The beginning inventory included $12,000 for materials and $4,000 for conversion costs. Overhead is applied at the rate of 50% of direct manufacturing labor costs. Ending work-in-process inventory in the assembly department was 40% complete. All spoilage is considered normal and is detected at the end of the process.

Required:
Prepare a production cost worksheet using weighted-average for the assembly department>

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Definitions:

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared with a risk-free investment.

Utils

A hypothetical unit of measurement used in economics to quantify the amount of utility or satisfaction gained by consuming goods and services.

Outcomes

The results or effects of actions, decisions, or policies, with a broader application beyond purely economic contexts.

Risk Averse

A preference for certainty over uncertainty with regards to outcomes, particularly in the context of financial decisions.