# ACC 543 Virginia State Equivalent Cost per Unit with the Ending Inventory Questions

User Generated

Qrr72

Business Finance

ACC 543

Virginia State University

ACC

## Description

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.

### Unformatted Attachment Preview

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.
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## Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.

Running Head: PERCENTAGE OF COMPLETION

Percentage of Completion
Name
Course
Tutor
Date

1

PERCENTAGE OF COMPLETION
Percentage of Completion
Equivalent cost per unit with the ending inventory at 40%
In order to compute the equivalent cost per unit for both 40% and 60% ending inventory
assumptions, we first calculate percentage completion. This can be calculated by:
Beginning inventory = 5500 units
Started = 94500 units while the transferred units are 90000.
Therefore, the total cost is \$902400.
Cost per unit with the ending inventory at 40% is calculated as follows:
94500+5500= 100000 work in progress
100...

### Review

Anonymous
Awesome! Perfect study aid.

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