I have to show work please A company\'s January 1 goods in process inventory con
ID: 2360727 • Letter: I
Question
I have to show work pleaseA company's January 1 goods in process inventory contained 30,000 units that were 25% complete with respect to direct labor. The beginning inventory was completed this year and another 120,000 units were started. Of those started, 80,000 were finished and the remaining 40,000 were left 20% complete. Calculate the equivalent units of production for the year using the weighted average method.
2. A retail store has three departments, A, B, and C, each of which has four full-time employees. The store does general advertising that benefits all departments. Advertising expense totaled $90,000 for the current year, and departmental sales were:
Dept A $356,250
DEPT B 641,250
DEPT C 427,500
How much advertising expense should be allocated to each department?
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Explanation / Answer
Weighted Average Method: Beg Invty 30,000 .25 Started 120,000 Total to be acctd for 150,000 Transferred 110,000 = 110,000 End Invty 40,000 .20 = 8,000 Total as acctd for 150,000 Equivalent units using weighted average = 118,000 To check: Beg Invty 30,000 Finished 80,000 End Invty 40,000 at 20 percent = 118,000 2)Advertising Expense allocated as: Dept A 356,250 = 356,250/1,425,000 X 90,000 = 22,500 Dept B 641,250 = 641,250/1,425,000 X 90,000 = 40,500 Dept C 427,500 = 427,500/1,425,000 X 90,000 = 27,000 Totals 1,425,000