Production and Cost Data for the Month of February for Process

question 118

Essay

Production and cost data for the month of February for Process A of the Packer manufacturing Company follow:
$$\begin{array}{l}\text { Units in process, February } 1\\\begin{array} { | l | c | } \hline \begin{array} { l } \text { (100\% complete with respect to materials; } \\25 \% \text { complete with respect to conversion cost) }\end{array} & 2,000 \\\hline \text { New units started in process } & 8,000 \\\hline \begin{array} { l } \text { Units completed } \\( 100 \% \\1 / 3 \text { complete with respect to conversion cost) }\end{array} & 7,000 \\\hline \text { Units in process, February } 28 & 3,000 \\\hline \text { Work-ir-process inventory, February } 1 : & \\\hline \text { Materials } & \$ 600 \\\hline \text { Conversion } & \$ 100 \\\hline \text { Costs incurred in February: } & \\\hline \text { Materials issued } & \$ 2,560 \\\hline \text { Conversion } & \$ 1,500 \\\hline\end{array}\end{array}$$
The company uses the weighted-average cost method in its process costing system.Required:
a.Calculate the equivalent units and cost per equivalent unit for February for materials and for conversion costs.(Carry calculations out to the nearest tenth of a cent. )
b.Determine the cost transferred to finished goods.c.Determine the amount of cost that should be assigned to the ending work-in-process.

Apply the predistribution plan in determining the order of cash distributions during liquidation.

Evaluate the effect of selling partnership assets at different amounts on the liquidation outcome.

Interpret the role of partner contributions and loans in liquidation settlements.

Determine the allocation of gains and losses from the sale of noncash assets during liquidation.

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Definitions:

Grinding Costs

The expenses incurred in the process of grinding materials, typically related to production or manufacturing.

Bone Meal

A powdery agricultural fertilizer made from ground animal bones, rich in phosphorous and calcium.

Sufficient Outside Customers

A requirement for some accounting methods where a service department or segment of a business must have enough sales to external customers to justify its existence or pricing strategy.

Container Product

A product designed to hold or contain other products, goods, or materials.