Business Finance
Alabama A & M University Percentage of Completion Other

Alabama A & M University

Question Description

There is 2 parts to the assignment and have been uploaded as word doc. Please be sure to review word doc fully.



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Part 1: Franklin Ski Company manufactures snow skis. During the most recent accounting period, the company’s finishing department transferred 4,200 sets of skis to finished goods. At the end of the accounting period, 410 sets of skis were estimated to be 50 percent complete. Total product costs for the finishing department amounted to $220,250. Required a. Determine the cost per equivalent. b. Determine the cost of the goods transferred out of the finishing department. c. Determine the cost of the finishing department’s ending work in process inventory. Need answers for: A. Cost per equivalent unit? B. Allocation to finished goods? C. Allocation to ending inventory? Part 2. Assignment Content 1. Refer to the scenario located in the “Analyze, Think, Communicate” section 12-5 of Ch. 12, “Job-Order, Process, and Hybrid Costing Systems” of Fundamental Managerial Accounting Concepts. This scenario involves an altercation between Rene Alverez and Bill Sawyer and requires you to weigh in with calculations and comments on the matter. Read the scenario in the textbook and complete the activity below. Compute the equivalent cost per unit, assuming the ending inventory is considered to be 40 percent complete. Compute the equivalent cost per unit, assuming the ending inventory is considered to be 60 percent complete. *****Write a 350-word summary of your calculations and findings. Comment on Mr. Sawyer’s motives for establishing the percentage of completion at 60 percent rather than 40 percent. Submit calculations and summary. scenario in the textbook ...
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Final Answer

thank you
Attached.

Running Head: APPLY: PERCENTAGE OF COMPLETION

Apply: Percentage of Completion
Name
Course
Tutor
Date

1

APPLY: PERCENTAGE OF COMPLETION

2

PART ONE
A. Cost per equivalent unit?
Particulars

Actual units

Percentage of

Equivalent units

completion
Transferred to

4200

100%

4200

Ending inventory

410

50%

205

Total accounted for

4610

finished goods

4405

The total product costs = $ 220,250
Total equivalent units = 4405
Cost per equivalent unit = total product costs/total equivalent units accounted for
= 220,250/4405
= 50
Therefore cost per equivalent unit = $50
B. Allocation to finished goods?
= 4200 x 50
= $210,000
C. Allocation to ending inventory?

APPLY: PERCENTAGE OF COMPLETION

3

= 205 x 50
= $ 10,250
PART TWO
Compute the equivalent cost per unit, assuming the ending inventory is...

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