Nichola,Inc $$\begin{array} { l r } \text { Materials } & \$ 73,750 \\\text { Conversion cost } & 57,200 \\\text { Total cost } & \$ 130,950\end{array}$$

question 80

Essay

Nichola,Inc.manufactures products that pass through two processes.The company uses the weighted average method to compute unit costs.During April,equivalent units were computed as follows:
Cost was added as follows:
Required:
$$\begin{array} { l r } \text { Materials } & \$ 73,750 \\\text { Conversion cost } & 57,200 \\\text { Total cost } & \$ 130,950\end{array}$$ A. Determine the cost of the goods transferred out.
B. Determine the cost of ending work in process.
Determine the cost of the goods transferred out if materials in ending work in process had
C. been $90 \%$ complete and conversion in ending work in process had been $70 \%$ complete. Round costs per unit to two decimal places if necessary.

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Definitions:

Express Warranty

is a seller’s promise or guarantee that a product will meet certain quality and reliability standards, explicitly stated in the contract or sales agreement.

Credit

The ability of a consumer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Sample

A portion, piece, or segment taken from something larger to represent the quality, style, or nature of the whole.

Merchantability

An implied warranty that goods sold by a merchant are reasonably fit for the general purpose for which they are sold.