Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in bidding on a follow-up government contra
ct. In gathering cost data from the first three units, which Nebula produced under a research and development contract, he found that the first unit took 2,500 labor hours, the second took 2,250 labor hours, and the third took 2,120 hours. Use Exhibit 6.5. In a contract for three more units, how many labor hours should Simpson plan for
1 answer:
Answer: 5,882.5 hours
Explanation:
Cumulative Labor Hours to be planned for = Cumulative factor * Time of first unit
Cumulative Factor = Average learning rate for Number of units.
Learning rate from unit 1 to 2 = Labor hours required for 2nd unit / Labor Units required for 1st unit
= 2,250/2,500
= 0.9
Learning rate from unit 2 to 3 = Labor hours required for 3rd unit / Labor Units required for 2nd unit
= 2,120/2,250
= 0.94
Average learning rate = (0.9 + 0.94) / 2
= 0.9
= 90%
There are 6 units in total including the first units checked and the additional 3 units.
Cumulative factor for 6 units at 90% from the table is 5.101.
Cumulative labor hours = 5.101 * 2,500
= 12,752.5 hours
The time for the Addiotnal 3 units is;
= Cumulative time for all units - time for the first 3 units
= 12,752.5 - 2,500 - 2,250 - 2,120
= 5,882.5 hours
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Answer:
a. see attachment
b.
total equivalent units : Materials = 30,500 units and Conversion Costs = 16,860
cost per equivalent unit : Materials = $0.14 and Conversion Costs = $0.30
c.
(a) units completed and transferred to Finished Goods = $6,732
(b) units still in process at June 30 = $1,196
d.
<u>Journals</u>
Work In Process :Direct Materials $4,305 (debit)
Raw Materials $4,305 (credit)
<em>Being Raw Materials used in Production</em>
Work In Process :Direct Labor $3,320 (debit)
Salaries Payable $3,320 (credit)
<em>Being Labor used in Production</em>
Work In Process ; Overheads $1,738 (debit)
Overheads $1,738 (credit)
<em>Being Overheads Assigned to Production</em>
Finished Goods $6,732 (debit)
Work In Process $6,732 (credit)
<em>Being Units transferred to Finished Goods</em>
Explanation:
<u>Calculation of Equivalent units of Production in respect with Raw Materials and Conversion Costs</u>
1. Materials
Ending Work In Process (5,200 × 100%) 5,200
Completed and Transferred Out (15,300 × 100%) 15,300
Equivalent units of Production in respect with Raw Materials 30,500
2. Conversion Costs
Ending Work In Process (5,200 × 30%) 1,560
Completed and Transferred Out (15,300 × 100%) 15,300
Equivalent units of Production in respect with Conversion Cost 16,860
<u>Calculation of Cost per Equivalent unit of production in respect with Raw Materials and Conversion Costs</u>
Unit Cost = Total Cost ÷ Total Equivalent units
1. Materials
Unit Cost = $4,305 ÷ 30,500
= $0.14
2. Conversion Costs
Unit Cost = ($3,320 + $1,738) ÷ 16,860
= $0.30
3. Total unit cost
Total unit cost = Material Cost + Conversion Cost
= $0.14 + $0.30
= $0.44
<u>Calculation of costs assigned to (a) units completed and transferred to Finished Goods and (b) units still in process at June 30.</u>
(a) units completed and transferred to Finished Goods
Total Cost = units completed and transferred out × total unit cost
= 15,300 × $0.44
= $6,732
(b) units still in process at June 30.
Total Cost = Materials Cost + Conversion Cost
= $0.14 × 5,200 + $0.30 × 1,560
= $1,196
Answer:
The answer is "1.1"
Explanation:
In the case of a single Interest, the principal value is determined as follows:
In case of discount:
Let income amount = 100, time = 1.5 years, and rate =20 %.
Formula:
A = P(1+rt)
A =P+I
by putting vale in the above formula we get the value that is = 76.92, thus method A will give 76.92 value.
If we calculate discount then the formula is:
P = M(1-rt)
M = 100 rate and time is same as above.
Thus Method B will give the value that is 70
calculating ratio value: