Management Accounting (ACC/ACF3200)

Beta Ltd manufactures wooden lamps in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Inspection occurs at the end of the process. Data for September 2023 are as follows:

WIP, beginning inventory 1 September 2023         14811 units

Direct materials (100% complete)

Conversion costs (75% complete)

Started during September                                      76157 units

Completed and transferred out during the month  71892 units

WIP, ending inventory 30 September 2023           12354 units

Direct materials (100% complete)

Conversion costs (65% complete)

Costs for:

WIP, beginning Inventory:

Direct materials                                      $158992

Conversion costs                                     77,800

Direct materials added during September    232,400

Conversion costs added during September  291342

Calculate Beta Ltd's total spoiled units for the month of September 2023.

Beta Company manufactures motors for treadmills. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout the production. Beta Company uses the first-in-first-out (FIFO) method of process costing.

Data for the Assembly Department for September 2023 are:

Work in process, beginning inventory 295 units

Direct materials (100% complete)

Conversion costs (40% complete)

Units started during September 1077 units

Work in process, ending inventory:  293 units

Direct materials (100% complete)

Conversion costs (85% complete)

Costs for September 2023:

Work in process, beginning inventory:

Direct materials $85159

Conversion costs $116644

Direct materials costs added during September $590447

Conversion costs added during September $390408

Compute the Assembly Department's conversion costs per equivalent unit for the month of September 2023. (Round the final answer to 2 decimal places.)

Gamma Company manufactures printer circuit cards. All direct materials are added at the inception of the production process. During September 2023, the accounting department noted that there was no beginning inventory. Direct materials of $311806 were used in production during the month. Work-in-process records revealed that 9546 card units were started in September, 5098 card units were complete, and 3001 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete.

Calculate the direct material cost assigned to the good units completed. (Round interim calculations to the nearest cent, and final answer to the nearest whole dollar.)

Alpha Company reported a return on investment of 5 per cent and a profit margin of 41 per cent for the year. Compute the investment turnover of Alpha for the year. (Round the final answer to 2 decimal places, not as a percentage.)

Gamma Ltd earned residual income of $86245 during the year. The net profit was $247737 during the year and the company's required rate of return was 11.5 per cent. Compute the invested capital of Gamma Ltd for the year.

Gamma Company manufactures cycle-electronics on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Gamma uses the weighted-average method of process costing.

Data for the Assembly Department for September 2023 are:

Work in process, beginning inventory 288 units

Direct materials (100% complete)

Conversion costs (60% complete)

Units started during September 1067 units

Work in process, ending inventory: 296 units

Direct materials (100% complete)

Conversion costs (75% complete)

Costs for September 2023:

Work in process, beginning inventory:

Direct materials $86671

Conversion costs $103219

Direct materials costs added during September $580307

Conversion costs added during September $400337

Compute Gamma's conversion costs per equivalent unit for the month of September 2023. (Round the final answer to 2 decimal places.)