ameron Company uses a process cost system and the weighted average method to account for its production. The following information was available for August: units Costs Work in Process, August 1 100 $ 2,990 Work in Process, August 31 200 (A) During the month, 800 units were started into production, and $5,000 in costs were incurred. Ending inventory was 50% complete. The cost of the units transferred out would be: (Do not round your intermediate calculations.)


Answer 1


Cost of Units Transferred Out: $7,548


                                                                      Cost                       Units                                      

Beginning Work in Process (WIP):              $2,990                    1,100

Production Started during August                                               800

Production Completed in August                                                1,700 *

Cost added to during August                     $5,000    

Ending WIP August:                                                                      200 (50%)

*Completed: Beginning WIP Units  + Started Units  - Ending WIP Units = 1,100 + 800 - 200 = 1,700

Costs of the Units: Cost of beginning WIP Units + Cost Added during the Period

Cost of the Units: $2,990 + $5,000 = $7,990

Equivalent Units of Production (EUP): Completed Units + Ending WIP Units

EUP: 1,700 Units + 200 Units x 50% = 1,800 Units

Cost per Equivalent Unit: Cost of Units / EUP

Cost per EUP: $7,990 / 1,800 = $4.44

Cost of Units Transferred Out: Cost per EUP x Units Transferred Out

Cost per Units Transferred Out:  $4.44 x 1,700 = $7,548

Related Questions

Alpha Industries is considering a project with an initial cost of $7.9 million. The project will produce cash inflows of $1.63 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.58 percent and a cost of equity of 11.25 percent. The debt–equity ratio is .59 and the tax rate is 40 percent. What is the net present value of the project?
Evans Products uses a process costing system with two processing departments: the Mixing Department and the Finishing Department. In June, unit costs incurred by the Mixing Department amounted to $4.00 per unit. Unit costs transferred to the finished goods warehouse during the month amounted to $22. Work-in-process inventories are reduced to zero each month. The entry to record the sale of 3,500 units in June would include:
The price of a stock is $64. A trader buys 1 put option contract on the stock with a strike price of $60 when the option price is $10. The trader makes a profit when the stock price is below _______________
Assume the carrying capacity of the earth is 13 billion. Use the 1960s peak annual growth rate of 2.1​% and population of 3 billion to predict the base growth rate and current growth rate with a logistic model. Assume a current population of 6.8 billion. How does the predicted growth rate compare to the actual growth rate of about 1.2​% per​ year?
The following information applies to the questions displayed below.]Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:DirectLabor-Hoursper unit AnnualProductionRims 0.30 26,000 unitsPosts 0.50 70,000 unitsAdditional information about the company follows:Rims require $15 in direct materials per unit, and Posts require $11.The direct labor wage rate is $15 per hour.Rims are more complex to manufacture than Posts and they require special equipment.The ABC system has the following activity cost pools:Estimated ActivityActivity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts TotalMachine setups Number of setups $ 32,900 60 140 200Special processing Machine-hours $114,800 4,000 0 4,000General factory Direct labor-hours $1,404,000 6,000 72,000 78,000c.A security guard patrols the company grounds after normal working hours.d.Purchase orders are issued for materials to be used in production.e.Modifications are made to product designs.f.New employees are hired by the personnel office.g.Machine settings are changed between batches of different products.h.Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.)i. Insurance costs are incurred on theRequired:1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)Activity Cost Pool Activity RateMachine setups per setupSpecial processing per MHGeneral factory per DLHcompanyâs2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)Unit product cost of Rims Unit product cost of Posts

Suppose the reserve requirement (R) is 15%. What is the effect on total checkable deposits in the economy if bank reserves increase by $60 billion. Assume E=0



$400 billion


The computation on the impact on total checkable deposits is shown below

= Increased in the bank reservce ÷ reserve requirement

= $60,000,000,000 ÷ 15%

= $400 billion

Therefore the impact on the total checkable deposits in the case when the bank reserves rises is $400 billion

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Please show your work.




Unitary elastic

Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.


Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%

Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%

Elasticity of demand = 40% / 40% = 1

If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.

I hope my answer helps you

Final answer:

The price elasticity of demand is calculated to be 1, indicating unitary elasticity. This means a percentage change in price leads to an equal percentage change in quantity demanded, which implies widgets have a proportional responsiveness to price changes.


The price elasticity of demand for widgets can be calculated using the formula: PED = (% Change in Quantity Demanded) / (% Change in Price)

To determine the percentage change in quantity demanded, subtract the new quantity (15 widgets) from the original quantity (25 widgets), divide by the original quantity, and multiply by 100. The calculation is: [(15 - 25) / 25] * 100 = -40%

The percentage change in price is calculated as: [(7 - 5) / 5] * 100 = 40%

Substituting these values into the formula gives: PED = (-40%) / (40%) = -1. Because we usually report price elasticity of demand as absolute values, we interpret it as 1 in absolute value terms.

Since the price elasticity of demand is 1, it indicates a unitary elasticity. This implies that a 1% change in price induces a proportionate 1% change in quantity demanded. So, as price increased, customers decreased their purchase of widgets proportionately.

Learn more about Price Elasticity of Demand here:


Dr. Evil presents the sound of a buzzer to his pet rabbit, and he follows it with the delivery of a small electric shock. After repeated pairings of the buzzer and shock, the rabbit learns to fear the sound of buzzers. Dr. Evil then proceeds to extinguish the rabbit’s fear of buzzers. Now suppose that, after extinction, Dr. Evil decides to present the buzzer and shock to the rabbit once again. After only one pairing, the rabbit will demonstrate __________ and fear the buzzer again.





Reconditioning means to "condition again" so the rabbit will demonstrate and condition the fear of the buzzer again.

Potential effects of departmental performance reports on employee behavior include all of the following except: Including indirect expenses can lead to a manager being more careful in using service department's costs. Using budgeted service department costs insures that operating departments are not held responsible for excessive service department costs. Including uncontrollable costs can serve to improve a manager's morale.


Potential effects of departmental performance reports on employee behavior except including uncontrollable costs served to improve manager's morale.


  • Performance management plays an important role to keep a proper record of all the works that are being performed in a company .
  • A proper performance management also shows an important effect on the behavior of the employees.
  • If the employees are boosted properly by the managers they will increase the productivity .
  • This will help the company to earn profits. Departmental performance keep record of all the expenses that are being done during the production process . It also help the manager to gain information and can adopt proper strategy to reduce expenses.

A new project would require an immediate increase in raw materials in the amount of $12,000. The firm expects that accounts payable will automatically increase $8,500. How much must the firm expect its investment in net working capital to change if they accept this project


Answer: Increase by $3,500


The Net Working Capital of a company is calculated by subtracting Current liabilities from current assets.

Raw materials are current assets and Accounts Payable are current liabilities.

The Net working capital resulting from accepting this project is;

= 12,000 - 8,500

= $3,500

Net Working capital investment would increase by $3,500.

Activity Cost Pool Total Cost Total Activity Activity Rate Machine setups $ 20,000 200 setups $ 100 per setup Special processing $ 150,000 10,000 MHs $ 15 per machine-hour General factory $ 200,000 20,000 direct labour-hours $ 10 per direct labour-hour Total overhead costs $ 370,000 What is the total overhead cost assigned to Product A, if Product A used 100 setups, no special processing and 10,000 direct labor-hours? $10,000 $1,000 $110,000 $100,000



total overhead cost = $110,000

so correct option is c.  $110,000


given data

used = 100 setups

direct labor-hours = 1000

to find out

What is the total overhead cost assigned to Product A


we get total overhead cost that is express as

total overhead cost = [ $100 per machine setup × 100 setups ] + [ $15 per machine-hours × 0 special processing ] + [ 10 per direct labor-hour × 10,000 direct labor-hours ]    


total overhead cost = $10,000 + $0 + $100,000

total overhead cost = $110,000

so correct option is c.  $110,000

Other Questions