Question 1\tRayol Inc uses a process cost system to accumulate the costs it incurs to produce aluminum stabilizers from recycled aluminum cans. The July 1 inventory in the finishing department consisted of 63,000 units, fully complete as to materials and 80 per cent complete as to conversion.\u00a0\tThe beginning inventory cost $288,000 consisted of $216,000 of costs transferred in from the molding department conversion costs (conversion costs are direct labor and overhead). The costs incurred in the finishing department for July appear as follows:\t\tCosts transferred from molding department $720,000 (excluding costs in beginning inventory)\tCosts added in finishing department in July:\t(Excluding costs in beginning inventory): $63,600\tMaterials 131,376\t\tConversion costs $914,976\t\tThe finishing department received 120,000 units from the molding department in July. During July, 127,200 units were completed by the finishing department and transferred out. As of July 31, 28,800 units, complete as to materials and 60% complete as to conversion, were left in inventory of the finishing department.\ta. Using the average cost procedure, prepare a production cost report for the finishing department for July.\tb. Compute the average unit cost for conversion in the finishing department in June.\t\tQuestion 2\tIn 2013, Adam opened Adam’s Pets, a small retail shop selling pet supplies.\tOn December 31, 2013, the accounting records of Adam’s Pets showed the following:\t\tInventory on Dec 31, 2013 $20,400\tInventory on Jan 1, 2013 30,200\tSales Revenue 114,000\tUtilities Expense for the shop 7,800\tRent for the shop 8,200\tSales Commissions 4,300\tPurchases of Merchandise Inventory 54,000\t\t\ta. Prepare an income statement for Adam’s Pets for the year ended December 31, 2013\tb. Adams’s Pets sold 8,500 units. Determine the unit cost of the merchandise sold.<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1 Rayol Inc uses a process cost system to accumulate the costs it incurs to produce aluminum stabilizers from recycled aluminum cans. The July 1 inventory in the finishing department consisted of 63,000 units, fully complete as to materials Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200742","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200742"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200742\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}