Cordon Processing Uses a Process Costing System to Account for Its

question 46

Essay

Cordon Processing uses a process costing system to account for its solvent plant.Beginning inventory consisted of 14,000 gallons (80% complete as to material,55% complete as to labor).Cordon added 213,000 gallons into the process during April.On April 30^th there were 18,000 gallons still in process (60% complete as to material,45% complete as to labor).Required:
(a)Calculate the equivalent units of production for each input,assuming Cordon uses weighted-average.(b)Calculate the equivalent units of production for each input,assuming Cordon uses FIFO.

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Definitions:

Future Net Cash Flows

The estimated amount of cash that is expected to be received or paid out in the future, after accounting for all projected income and expenses.

Present Values

The current worth of a sum of money to be received or paid in the future, discounted at a specific interest rate.

Net Present Value

A calculation that determines the current value of a series of future cash flows, discounting them by a specified rate to evaluate investments or projects.

Present Value

The present value of a future amount of money or series of cash flows, based on a particular rate of return.