Ralston Fine Hardwoods Uses a Process Costing System to Account

question 125

Essay

Ralston Fine Hardwoods uses a process costing system to account for its wood processing plant.Beginning inventory consisted of 4,000 board feet of lumber (100% complete as to material,35% complete as to labor).Ralston added 132,000 board feet into the process during April.On April 30^th there were 10,000 board feet still in process (100% complete as to material,22% complete as to labor).Required:
(a)Calculate the equivalent units of production for each input,assuming Ralston uses weighted-average.(b)Calculate the equivalent units of production for each input,assuming Ralston uses FIFO.

---

Definitions:

Cash Cows

In business, products or units that generate significantly more money than they consume, often found within mature markets where they have established a dominant market share.

Excess Funds

Refers to the surplus money a business has after all its operational costs, taxes, and obligations have been met, which can be invested or saved for future use.

Growth Strategies

Approaches and methods businesses use to achieve higher levels of market share, revenue, and profitability.

Market Penetration

A strategy aiming to increase sales of existing products or services within current markets, often by gaining a larger market share.