Equivalent Units; Weighted-Average Equivalent Unit Cost Perrette Motor Company rebuildsautomobile engines that have been damaged or are in need of extensive repair. The rebuilt engine hasa 100,000-mile warranty and is purchased by auto shops, large motor pools in companies and governmental units, and some individual auto owners. The plant in Dayton, Ohio, specializes in the FordV6 engine. Approximately 600 to 800 engines are rebuilt each month, and the costs of the plant areassigned to monthly production using weighted-average process costing. The current month beganwith a Work-in-Process Inventory of 100 engines, which were 50% complete for direct materialsand 50% complete for conversion costs. The direct materials cost in beginning Work-in-Process was$50,000, while the conversion cost was $60,000. A total of 500 engines were completed and shippedout during the month, and total direct materials cost of $550,000 and conversion cost of $640,000were incurred during the month. The ending Work-in-Process of 200 units was 50% complete fordirect materials and 30% complete for conversion costs.Required Compute the cost per equivalent unit for direct materials and conversion for the month
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Equivalent Units; Weighted-Average Equivalent Unit Cost Perrette Motor Company rebuilds
automobile engines that have been damaged or are in need of extensive repair. The rebuilt engine has
a 100,000-mile warranty and is purchased by auto shops, large motor pools in companies and governmental units, and some individual auto owners. The plant in Dayton, Ohio, specializes in the Ford
V6 engine. Approximately 600 to 800 engines are rebuilt each month, and the costs of the plant are
assigned to monthly production using weighted-average
with a Work-in-Process Inventory of 100 engines, which were 50% complete for direct materials
and 50% complete for conversion costs. The direct materials cost in beginning Work-in-Process was
$50,000, while the conversion cost was $60,000. A total of 500 engines were completed and shipped
out during the month, and total direct materials cost of $550,000 and conversion cost of $640,000
were incurred during the month. The ending Work-in-Process of 200 units was 50% complete for
direct materials and 30% complete for conversion costs.
Required Compute the cost per equivalent unit for direct materials and conversion for the month
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