Krumbly Corporation uses the FIFO method in its process costing system. At the beginning of the month, Department D's work in pr

ocess inventory contained 2,000 units. These units were 100% complete with respect to materials and 40% complete with respect to conversion costs, with a total cost at that point of $13,600. During the month, conversion costs amounted to $8 per equivalent unit. If all 2,000 units are fully complete by the end of the month and transferred out of the department, the total cost of the 2,000 units transferred out will be closest to:

Business

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The Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells memberships that entitle the mem

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Answer:

c. $180 in 2019

Explanation:

The entity employs the accrual accounting method, where revenues are documented on the income statement once earned, regardless of the actual receipt of cash.

On July 1, 2017, the organization sold one-year and two-year memberships. In 2017, The Maroon & Orange Gym, Inc. delivered services for half a year for each contract.

Gross income from one-year membership in 2017 = $40 x 6 = $240

Gross income from two-year membership in 2017 = $30 x 6 = $180

Overall revenue = $240 + $180 = $420

In 2018, the company continued providing services for the remaining 6 months of the one-year membership and the entire 12 months of the two-year membership.

Gross income for the one-year membership in 2018 = $40 x 6 = $240

Gross income from two-year membership in 2018 = $30 x 12= $360

Total income = $240 + $360 = $600

In 2019, the company wrapped up services for the last 6 months of the two-year membership.

Gross income in 2019 = $30 x 6= $180

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Answer:

Joint Venture

Explanation:

A joint venture occurs when two or more firms enter into a partnership agreement to pursue shared goals within a specific timeframe. This collaboration creates synergy through the shared resources of the involved organizations. This scenario is similar, with three organizations forming a contract and agreeing to pool their resources to achieve a mutual objective. Once this goal is accomplished, the partnership (Joint Venture) will be terminated.

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The weighted-average process-costing method calculates the equivalent units by ________.A) considering only the work done during

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Correct option is D) "equivalent units completed during the current timeframe plus equivalent units in the final inventory".

Clarification:

The weighted-average process-costing approach calculates an average cost per unit by combining the equivalent units completed in the current timeframe with those in ending inventory. This approach is comparable to the first-in first-out (FIFO) method, differing in that it separates incomplete goods for the computations.

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