Alonso T. Corporation uses the weighted-average method in its process costing system. In their first processing department, the company worked on 1,050 equivalent units of production with respect to conversion costs in April. Additional information for April is: Beginning inventory 230 units 40% complete Started 1,345 units Completed and transferred out 700 units Q: The % of completion of the ending inventory in work-in-process with respect to conversion cost is: A: % (enter % amount, not decimal; ex. 22, not 0.22)

The % of completion of the ending inventory in work-in-process with respect to conversion cost is: 40%.

Explanation:

First determine the Physical Units of Closing Work In Process

Physical Units of Closing Work In Process Calculation

Physical Units of Closing Work In Process =  230 +  1,345 - 700

                                                                      =  875

Calculation of Equivalent Units of Production

(To determine Equivalent units of Closing Work In Process)

Conversion Cost

Units Completed and Transferred (700 × 100%)         =    700

Units in Closing Work In Process (Balancing figure)   =   350

Equivalent Units of Production                                     = 1,050

Percentage Completion = Equivalent Units of Closing Work In Process / Physical Units of Closing Work In Process × 100

                                         = 350 / 875 × 100

                                         = 40%

The % of completion of the ending inventory in work-in-process with respect to conversion cost is: 40%.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

better off having an absolute