Hester Company budgets on an annual basis for its fiscal year. The followingbeginning and ending inventory levels (in units) are planned for the fiscal year ofJuly 1, 2004 through June 30, 2005.July 1, 2004 June 30, 200540,00010,0008,0008,000Finished goods30,0005,0001 Three (3) units of raw material are needed to produce each unit offinished product.Answer:Raw material¹Work-in-processIf Hester Company plans to sell 500,000 units during the 2004-2005 fiscal year,the number of units it would have to manufacture during the year would be

The units to be manufactured during the year are calculated by taking into consideration the units…

Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 2004 through June 30, 2005. Answer: July 1, 2004 June 30, 2005 40,000 8,000 30,000 Raw material¹ Work-in-process 10,000 8,000 Finished goods 5,000 1 Three (3) units of raw material are needed to produce each unit of finished product. If Hester Company plans to sell 500,000 units during the 2004-2005 fiscal year, the number of units it would have to manufacture during the year would be

Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 2004 through June 30, 2005. Answer: July 1, 2004 June 30, 2005 40,000 8,000 30,000 Raw material¹ Work-in-process 10,000 8,000 Finished goods 5,000 1 Three (3) units of raw material are needed to produce each unit of finished product. If Hester Company plans to sell 500,000 units during the 2004-2005 fiscal year, the number of units it would have to manufacture during the year would be

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 5EB: Using the weighted-average method, compute the equivalent units of production if the beginning...

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Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended December 31, 2016, from the following estimates. Inventories of production units: Direct materials purchased during the year, 854,000; beginning inventory of direct materials, 31,000; and ending inventory of direct materials, 26,000. Totals from other budgets included:
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Given the following information: Prior Year (Budget) Prior Year (Actual) Current Year (Budget) Current Year (Actual) Beginning Inventory (Units) 0 0 ? ? Sales (Units) 610,000 570,000 582,000 590,000 Manufactured (Units) 600,000 590,000 640,000 610,000 Selling Price ($/unit) 9.99 9.90 9.95 10.10 Variable Manufacturing Cost ($/unit) 4.93 4.93 4.96 4.96 Total Fixed Manufacturing Costs ($) 1,584,000 1,561,000 1,664,000 1,599,531 Variable Selling Cost ($/unit) 1.00 1.02 0.99 1.01 Total Fixed SG&A Costs ($) 360,000 363,000 356,850 348,000 Other information: The manufacturer uses FIFO (this is to make is easier to solve – weighted average would be a lot more difficult to solve) The manufacturer uses Standard Costing Required: Prepare an income statement for the Current Year based on Variable Costing. Prepare an income statement for the Current Year based on Absorption…
The department had a beginning inventory of 5,500 units of product, and it started 94,500 units during the period. It transferred out 90,000 units during the period. Total transferred in and production cost for the period was $902,400. This amount included the cost in beginning inventory plus additional costs incurred during the period. The target (stand) cost per unit is $9.45 A) Determine the equivalent cost per unit, assuming that the ending inventory is considered to be 40% complete. B)Determine the equivalent cost per unit, assuming that the ending inventory is considered to be 60% complete.
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