The Esther Valve Corporation Was Recently Formed to Produce a Brass

question 78

Essay

The Esther Valve Corporation was recently formed to produce a brass valve that forms an essential part of a compressor manufactured by a major corporation. The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process. September is Parson's first month of operations, and therefore, there was no beginning inventory. Direct materials cost for the month totaled $2,800,000, while conversion costs equaled $3,600,000. Accounting records indicate that 1,600,000 valves were started in September and 1,400,000 valves were completed.
Ending inventory was 20% complete as to conversion costs.
Required:
a.What is the total manufacturing cost per valve for September?
b.Allocate the total costs between the completed valves and the valves in ending inventory.

Identify strategies to mitigate organizational politics.

Understand the ethics of influence tactics and political behavior in organizations.

Recognize the role of personal attributes (e.g., Machiavellianism) in the use of influence tactics.

Apply knowledge of influence and power to real-world organizational situations.

---

Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Required Reserve Ratio

A mandated reserve that banks must keep on hand, usually a percentage of their deposits, determined by the central bank to ensure financial stability.

Checkable Deposits

Checkable deposits are bank account balances that depositors can easily withdraw or write checks against at any time, constituting a primary medium of exchange for personal and business transactions.

Required Reserve Ratio

The proportion of depositors' balances banks must have on hand as cash, mandated by the central bank.