Accounting

Click to watch the Tell Me More Learning Objective ADM video and then answer the questions below.

1.  Rambo-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit is a tube that encircles and protects the underground cable. In the process of making the plastic conduit, called extrusion, the melted plastic (resin) is pressed through a die to form a tube. Scrap is produced in this process. Information from the cost of production reports for three months is as follows, assuming that inventory remains constant:

	May	June	July
Resin pounds input into the process	470,000		700,000		650,000
Price per pound	×$1.50		×$1.50		×$1.50
Plastic material costs	$493,000		$640,000		$677,000
Conversion costs	$80,000		$120,000		$115,000
Conduit output from the process (feet)	800,000		1,200,000		1,130,000

Assuming that there is one-half pound of resin per foot of the finished product, determine the resin materials cost per foot of finished product for June.

1. 0.53
2. 0.60
3. 0.54
4. None of these choices are correct.

2.  Rambo-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit is a tube that encircles and protects the underground cable. In the process of making the plastic conduit, called extrusion, the melted plastic (resin) is pressed through a die to form a tube. Scrap is produced in this process. Information from the cost of production reports for three months is as follows, assuming that inventory remains constant:

	May	June	July
Resin pounds input into the process	470,000		700,000		650,000
Price per pound	×$1.50		×$1.50		×$1.50
Plastic material costs	$493,000		$640,000		$677,000
Conversion costs	$80,000		$120,000		$115,000
Conduit output from the process (feet)	800,000		1,200,000		1,130,000

Assuming that there is one-half pound of resin per foot of the finished product, determine the conversion cost per foot of finished product for May.

1. $0.5
2. $0.1
3. $0.3
4. None of these choices are correct.