Chocolate Innovations is a factory that currently produces gourmet chocolate truffles that they sell in boxes of 50 truffles. They also produce chocolate turtles that are sold in boxes of 25 candies. Their accountant, Melissa, is gathering information about their performance over the two most recent years so that they can make an official decision as to whether they will use the First-In, First-Out (FIFO) or Weighted-Average method for their Process Costing. Melissa has been keeping general records for two years before making a strong suggestion one way or another. She has collected the following cost information regarding the truffles:
Melissa also compiled production information for both years for the truffles:
She has collected the following cost information regarding the turtles:
Melissa also compiled production information for both years for the turtles:
Chocolate Innovations plans on selling each box of truffles for $75.00 and each box of turtles for $48.00.
(Round units to whole number and dollar amount to two decimal places.)
a. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for truffles for Year 1 under both FIFO and Weighted-Average?
b. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for truffles for Year 2 under both FIFO and Weighted-Average?
c. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for turtles for Year 1 under both FIFO and Weighted-Average?
d. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for turtles for Year 2 under both FIFO and Weighted-Average?
e. Using horizontal analysis, what is the increase year-to-year for all costs under both FIFO and Weighted-Average? What is the gross profit percentage for each box of truffles and each box of turtles for year 2?

Question

Chocolate Innovations is a factory that currently produces gourmet chocolate truffles that they sell in boxes of 50 truffles. They also produce chocolate turtles that are sold in boxes of 25 candies. Their accountant, Melissa, is gathering information about their performance over the two most recent years so that they can make an official decision as to whether they will use the First-In, First-Out (FIFO) or Weighted-Average method for their Process Costing. Melissa has been keeping general records for two years before making a strong suggestion one way or another. She has collected the following cost information regarding the truffles:
  Melissa also compiled production information for both years for the truffles:
  She has collected the following cost information regarding the turtles:
  Melissa also compiled production information for both years for the turtles:
  Chocolate Innovations plans on selling each box of truffles for $75.00 and each box of turtles for $48.00.
(Round units to whole number and dollar amount to two decimal places.)
a. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for truffles for Year 1 under both FIFO and Weighted-Average?
b. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for truffles for Year 2 under both FIFO and Weighted-Average?
c. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for turtles for Year 1 under both FIFO and Weighted-Average?
d. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for turtles for Year 2 under both FIFO and Weighted-Average?
e. Using horizontal analysis, what is the increase year-to-year for all costs under both FIFO and Weighted-Average? What is the gross profit percentage for each box of truffles and each box of turtles for year 2?

Quizplus · Accepted Answer

The Answer of Chocolate Innovations is a factory that currently produces gourmet chocolate truffles that they sell in boxes of 50 truffles. They also produce chocolate turtles that are sold in boxes of 25 candies. Their accountant, Melissa, is gathering information about their performance over the two most recent years so that they can make an official decision as to whether they will use the First-In, First-Out (FIFO) or Weighted-Average method for their Process Costing. Melissa has been keeping general records for two years before making a strong suggestion one way or another. She has collected the following cost information regarding the truffles:
  Melissa also compiled production information for both years for the truffles:
  She has collected the following cost information regarding the turtles:
  Melissa also compiled production information for both years for the turtles:
  Chocolate Innovations plans on selling each box of truffles for $75.00 and each box of turtles for $48.00.
(Round units to whole number and dollar amount to two decimal places.)
a. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for truffles for Year 1 under both FIFO and Weighted-Average?
b. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for truffles for Year 2 under both FIFO and Weighted-Average?
c. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for turtles for Year 1 under both FIFO and Weighted-Average?
d. What is the equivalent cost per unit for both Direct Materials and Conversion Cost for turtles for Year 2 under both FIFO and Weighted-Average?
e. Using horizontal analysis, what is the increase year-to-year for all costs under both FIFO and Weighted-Average? What is the gross profit percentage for each box of truffles and each box of turtles for year 2?

Chocolate Innovations Is a Factory That Currently Produces Gourmet Chocolate