Question

COST ACCOUNTING: (I) Maynard Inc. manufactures desks. The following data was given for production in February:...

COST ACCOUNTING:

(I) Maynard Inc. manufactures desks. The following data was given for production in February:

units, beginning work in process

0

units started

200

units completed

?

units, ending work in process (30% complete)

50


What are the equivalent units?

a) 170

b) 150

c) 180

d) 165

(II) Rina’s company has a sales budget for next month of $150,000. Cost of goods sold is expected to be 40% of sales. All goods are purchases in the month used and paid for in the month following purchase. The beginning inventory of merchandise is $6,000 and an ending inventory of $5,000 is desired. Beginning accounts payable is $38,000

How much inventory will Rina’s company need to purchase next month:

a) $61K

b) $60K

c) $59K

d) $65K

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