Managerial Essay

Problems Chapter 4Problem 4-26Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process. 1) Analysis of physical flow of social units.2) Calculation of equivalent units.3) Computation of unit be.4) Analysis of total cost.5) Build a Spreadsheet Construct an surpass spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change the April 1 go in process costs were $27,000 for direct material and $5,000 for conversion.1. animal(prenominal)Units Work in process, April 1 10,000 Units started during April 100,000 Total units to account for 110,000 Units effected and transferred out during April 80,000 Work in process, April 30 30,000 Total units accounted for 110,0002. Physical Units Percentage of Completion with Respect to ConversionEquivalent Units Direct MaterialConversion Work in process, April 1 10,000 20% Units started during April 100,000 Total units to account for 110,000 Units completed andtransferredout during April80,000100%80,00080,000 Work in process, April 30 30,000 33.33% 30,000 9,900 Total units accounted for 110,000 Total equivalent units 110,000 89,9003. Direct Material Conversion Total Work in process, April 1 $22,000 $4,500 $26,500 Costs incurred during April 198,000 158,400 356,400 Total costs to account for $220,000 $162,900 $382,900 Equivalent units 110,000 89,900 Costs per equivalent unit $2.00 $1.81 $3.814. Cost of goods completed and transferred out during April (Units Transferred) *(Total Cost per equiv. unit) = 80,000$3.81 $304,961 Cost remaining in April 30 work-in-process inventory Direct material ( of equivalent units of Direct Material ) * ( Cost per Equivalent Unit of Direct Material) = 30,000$2.00 $60,000 Conversion ( of equivalent units of conversion) * (Cost per equivalent unit of conversion) = 9,900$1.81 17,939 Total cost of April 30 work in process $77,919 Check Cost of goods completed and transferred out $304,961 Cost of April 30 work-in-process inventory 17,939 Total costs accounted for $382,900 5Build a Spreadsheet Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change the April 1 work in process costs were $27,000 for direct material and $5,000 for conversion.