Chocolate Candies Company produces chocolate candy in large quantities. They have two departments, a Mixing department and a Packaging department. The manufacturing costs in the Mixing department during December were:
Direct Materials Added $200,000
Direct Labor $100,000
Factory Overhead $80,000 $180,000
Total Mixing Dept. Costs to Account For $380,000
Assume there was no beginning inventory in work in process. Also assume that 25,000 chocolates were started in the Mixing department during December. However, only 20,000 chocolates were started and fully completed and transferred to the Packaging department. The 5,000 units remaining in the Mixing department at the end of December were 100% complete with respect to Direct Materials, but only 25% complete with respect to conversion costs.
1. Compute the equivalent units for direct materials and conversion costs for December.
2. Compute the unit costs for direct materials and conversion costs.
3. Compute the cost of units completed for December.
4. Compute the cost of units in ending work in process for December© BrainMass Inc. brainmass.com October 24, 2018, 7:13 pm ad1c9bdddf
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Risk Management Policy, and Acquisition Analysis: ADM and Corn Products
Please see attached files.
I need help with part e of section 2. I have no idea on how to decide on the pricing and financing:
e. This report should clearly identify the following:
1) Your proposed acquisition terms
4) Potential negotiation strategies
I can calculate the price/earning ratios and so on but I'm not able make sense of this data.
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