What bonus should Greg get, if he is responsible for the price at which each kg of DM was purchased?

Company X uses process costing . The company uses a weighted average cost flow and conversion costs are added evenly in the process. Direct materials are added at the beginning of the process.  All spoilage is normal and is detected at end of the process. The information for the current month is

as follows:

• Beginning work in process (BWIP) = 20000

  units

• Units started = 40000

  units

• Units completed = 50000

  units

• Ending work in process (EWIP) = 9000

  units

Beginning work in process was 70% complete as to

conversion costs. Ending work in process was 45% complete.

If the costs per equivalent unit are $1,2 and $0,6 for direct material and conversion, respectively, what is the value of the total completed units inventory?

Company X produce two products at a joint cost of $200 000 and presented the following information:

Company X produces joint products Z1 and Z2. At split off point, products Z1 and Z2 have a selling price of $500 and $200, respectively. Both products can be further processed and sold for higher prices: $1,000 and $1,000. There are additional processing cost of $600 for Z1 and $700 for Z2.

Which of the following is TRUE assuming that the company wants to maximize their operating income?

Company X  uses process costing and weigthed average method. There is no spoilage. Direct material 1 is added at the start of the process, DM 2 is added when the units are 60% complete, DM 3 is added evenly between 20% and 60% of the process and Conversion costs (CC) are added evenly during the process. Company X presented the following information related to the cost per EUP:

• DM 1 = $9
• DM 2 = $10
• DM 3 = $10
• CC = $5

Compute the cost of 1 unit of EWIP inventory (50% complete for coversion costs)

Company X uses the weighted-average method in its process costing system and there is no spoilage. Conversion costs are added evenly in the process. Company X presented the following information related to physical units:

• BWIP = 15124 units (45% complete with respect to conversion costs)
• Started during March = 105745 units
• Completed and transferred out = 100000 units

The ending work in process (EWIP) inventory in the department has the following degree of completion in terms of conversion costs:

Company X uses the weighted average method of process costing and there is no spoilage in the process. Direct material are introduced at the start of the process and Conversion costs are added evenly during the process. 

Company X presented the following information regarding physical units:

• BWIP = 1000 units (61% completed for conversion costs)
• Started = 5000 units

Company X presented the following information regarding EUP:

• Total EUP for Direct materials = 6000
• Total EUP for Conversion costs = 5000

Based on this information, compute te total EUP for Direct materials and Conversion costs in this month, if the company used FIFO method instead of weighted average method.

The managers of

company X are discussing ways to allocate the costs of support departments

(Support Department IT and Support Department HR) to production departments (Operating Department A and Operating Department B). The following information is available:

If Company X uses the step down method of allocating support department costs (beginning with Support Department IT),

the support department HR costs allocated to the Operating Department A are:

The following information is available for Company X:

• Units sold: 3600
• Units produced 3000
• Fixed manufacturing costs: $ 262909
• Budgeted production was 3200 units

What will

be the Production Volume Variance of Company X, in variable costing?

• Negative PVV = favourable adjustment to cogs (cogs decreases)
• Positive PVV = unfavourable adjustment to cogs (cogs increases)