O'Farrell Manufacturing Inc

question 33

Essay

O'Farrell Manufacturing Inc. uses a weighted-average process-costing system and has one production department. All materials are introduced at the start of manufacturing; in contrast, conversion costs are incurred uniformly throughout production. The company had respective work-in-process inventories on July 1 and July 31 of 80,000 units and 90,000 units, the latter of which was 50% complete. The production supervisor noted that O'Farrell completed 120,000 units during the month.
Costs in the July 1 work-in-process inventory were subdivided as follows: materials, $50,000; conversion, $30,000. During July, O'Farrell charged production with $460,000 of material and $810,000 of conversion, resulting in a material cost per equivalent unit of $2.
Required:
A. Determine the number of units that O'Farrell started during July.
B. Compute the number of equivalent units with respect to conversion cost.
C. Determine the conversion cost per equivalent unit.
D. Compute the cost of the July 31 work-in-process inventory.
E. What account would have been credited to record O'Farrell's completed production?

Recognize the importance of comprehensive package evaluation over individual issue assessment.

Differentiate between strategy and tactics in negotiation.

Understand the preparation steps crucial for successful negotiation, including setting clear objectives and gathering information about the other party.

Understand the principles and processes involved in the planning and structuring of groups.

---

Definitions:

Capitalism

A system of economy where the means for producing goods and services are privately owned, with the goal of generating profit.

Planet

A celestial body orbiting a star, massive enough to be rounded by its own gravity but not enough to cause thermonuclear fusion.

China

A country in East Asia, known for being the most populous nation and having one of the world's largest economies.

Economy

A system through which the production, distribution, and consumption of goods and services are organized and managed in a particular area or country.