Assurer Inc. uses the weighted-average method

  1. Assurer Inc. uses the weighted-average method in its process costing system. The
    following data concern the operation of the company’s first processing department for a
    recent month.
    Work in process, beginning
    Units in process
    Percent complete with respect to materials
    Percent complete with respect to conversion


Costs in the beginning inventory:
Materials cost
Conversion cost

$ 1,368

Units started into production during the month
Units completed and transferred out


Costs added to production during the month
Materials cost
Conversion cost

$ 64,948

Work in process, ending:
Units in process
Percent complete with respect to materials
Percent complete with respect to conversion


Required (10 points)
a. Determine the equivalent units of production

b. Determine the cost per equivalent unit

c. Determine the cost of ending work in process inventory.

d. Determine the cost of units transferred to the next department

  1. The sales manager at Burton Company is convinced that a $30,000 expenditure on
    advertising will increase unit sales by 50% without any other increase in fixed expenses.
    The sales manager has asked you, the Chief Financial Officer, to determine what the
    impact will be on the company’s net operating income if he is correct. Burton
    Company’s contribution format income statement for the most recent year is below.
    Show all of your work. (10 points)
    Sales (13,000 units) $325,000
    Variable expenses
    Contribution Margin 104,000
    Fixed Expenses
    Net operating loss
    $( 13,000)
  2. DuraDisc Corporation produces two types of compact discs: standard and high-grade.
    The standard CDs are used primarily in computer drives and are designed for data storage
    rather than accurate sound reproduction. The company only recently began producing the
    higher-quality, high- grade model to enter the lucrative music-recording market. Since the
    new product was introduced, profits have seen only a modest increase. Management
    expected a significant profit increase related to rapidly growing sales of the high-grade
    discs. Management believes the accounting system may not be accurately allocating costs
    to products.
    Management has asked you to investigate the cost allocation problem. You find that
    manufacturing overhead is currently assigned to products based on the direct labor costs
    in the products. Last year’s manufacturing overhead was $880,000, based on production
    of 320,000 standard CDs and 120,000 high-grade CDs. Selling prices last year averaged
    $3.60 per standard disc and $5.80 per high-grade disc. Direct labor and direct materials
    costs for last year were as follows:




Direct Labor


$ 80,000


Direct Materials




Management believes three activities cause overhead costs. The cost drivers and related
costs are as follows:

Activity Level
Cost Assigned
Number of Production Runs
Quality Tests Performed
Shipping Orders Processed
Total Overhead








Required (20 point)
a. How much of the overhead will be assigned to each product if the three cost drivers are
used to allocate overhead? What would be the cost per unit produced for each product?
b. How much of the overhead would have been assigned to each product if direct labor
cost had been used to allocate overhead? What would have been the total cost per unit
produced for each product?

c. How might the results explain why profits did not increase as much as management

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.


WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
? Hi, how can I help?