Bertinoli's Company Makes Gadgets

question 119

Essay

Bertinoli's Company makes gadgets.The company uses process costing.All direct materials are introduced at the end of the process.Conversion costs are incurred evenly throughout the process.In February,there was no beginning Work-in-Process Inventory,but 490,000 units were started.At the end of February,there were 90,000 units still in process at the 70% level of completion.Total costs incurred during February were $1,212,500 for materials and $3,664,000 for conversion costs.
Required:
A) Compute the number of units completed and transferred.
B) Compute the equivalent units for materials and conversion costs.
C) Compute the cost per equivalent unit for materials and conversion costs. Round to two decimal places.
D) Compute the cost of the units completed and transferred.
E) Compute the cost of ending work-in-process inventory.

• A) Compute the number of units completed and transferred.
• B) Compute the equivalent units for materials and conversion costs.
• C) Compute the cost per equivalent unit for materials and conversion costs. Round to two decimal places.
• D) Compute the cost of the units completed and transferred.
• E) Compute the cost of ending work-in-process inventory.

---

Definitions:

Socially Optimal Pricing

Pricing strategies aimed at maximizing societal welfare rather than corporate profits, emphasizing fairness and accessibility.

Marginal Cost

The cost of producing one additional unit of a product, important for decision-making in economics and business.

Fair-return Pricing

Pricing strategy aiming to set prices that are considered fair for consumers while allowing providers a reasonable profit.

Natural Monopoly

A market condition where a single firm can provide a good or service at a lower cost than any potential competitor, leading to exclusive control over the market.