Question

Question 29 (3.5 points) On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 38,000 units were started. At the end of the month all started units were 70% complete with respect to conversion. Direct Materials placed into production had a total cost of $485,000 and the total conversion cost for the month was $448,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for the month of March. (Round answer to the nearest cent.) Your Answer: Answer Question 30 (3.5 points) On January 2, 2018, Baltimore Company purchased 10,000 shares of the stock of Towson Company at $15 per share. Baltimore did NOT obtain significant influence as the purchase represents a 5% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $27,000. Baltimore Company intended this investment to a long-term investment. On December 31,2018, Towson Company reported $75,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $21 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.) Your Answer:

Answer 1

Answer :-

29.)

Particulars	Amount
Opening Work in Process inventory	0
Introduced units	38,000 units
Total units	= 38,000 units + 0 = 38,000 units
Equivalent units in respect of direct material	38,000 units
Total direct material cost	$485,000
Cost per equivalent unit of direct material	= $485,000 / 38,000 units = $12.763

30.)

Investment in shares are classified either under "Available for sale category" or "Held for trading". They cannot be classified under held to maturity as there is no maturity date for shares.

For both classifications "Available for sale" and "Held for trading", investment will be reported at fair value at year end in balance sheet.

Therefore Baltimore company should report its investment in Towson company on December 31, 2018 at fair value i.e. 10000 * $21 = $210,000