Perpetual Inventory Using The method of inventory costing based on the assumption that the costs of goods sold should be charged against revenue in the order in which the costs were incurred.FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Determining Missing Items from Computations

Data for the North, South, East and West divisions of Free Bird Company are as follows:

a. Determine the missing items, identifying each by the letters (a) through (l). If required, round percents and investment turnover to one decimal place.

b. Determine the residual income for each division, assuming that the minimum acceptable rate of return established by management is 12%.

c. Which division is the most profitable in terms of (1) return on investment and (2) residual income?

Determining Missing Items from Computations

Data for the North, South, East and West divisions of Free Bird Company are as follows:

a. Determine the missing items, identifying each by the letters (a) through (l). If required, round percents and investment turnover to one decimal place.

b. Determine the residual income for each division, assuming that the minimum acceptable rate of return established by management is 12%.

c. Which division is the most profitable in terms of (1) return on investment and (2) residual income?

6. A firm faces the issue of which investments to undertake. There are three projects, A, B, and C, each with a horizon (duration) of 8 years. For each of the three projects, financial management has already computed the decision-relevant measures of profitability as depicted in the table below. These computations already incorporate issues such as taxes and inflation. There is no risk or uncertainty involved and the projects’ returns are independent.

0. For each of the following scenarios, derive and explain which project should be implemented, and what the overall attainable NPV for the firm is.

   1. (a) Projects are mutually exclusive, not scalable, and there are no capital constraints.

   2. (b) Projects are not mutually exclusive, not scalable, and the firm can raise at most £80′000 in capital to finance initial investments.

   3. (c) Projects are not mutually exclusive, but are arbitrarily scalable, and the firm can raise at most £100′000 in capital to finance initial investments.

Beginning inventory, purchases, and sales data for hammers are as follows:

Mar. 3rd inventory 12 units @ $15

11 purchase 13 units @ $17

14 sale 18 units

21 purchase 9 units @ $20

25 sale. 10 units

assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of goods Sold and ending inventory under the following assumptions

a. First–in, first-out

Balances

costs of goods sold $

ending inventory $

b. Last-in, first-out

Balances

cost of goods sold $

ending inventory $

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,600 helmets, using 2,268 kilograms of plastic. The plastic cost the company $14,969.

According to the standard cost card, each helmet should require 0.57 kilograms of plastic, at a cost of $7.00 per kilogram.

Required:

1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,600 helmets?

2. What is the standard materials cost allowed (SQ × SP) to make 3,600 helmets?

3. What is the materials spending variance?

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 5,100 of these meals using 2,000 direct labor-hours. The company paid its direct labor workers a total of $28,000 for this work, or $14.00 per hour.

According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $13.50 per hour.

Required:

1. What is the standard labor-hours allowed (SH) to prepare 5,100 meals?

2. What is the standard labor cost allowed (SH × SR) to prepare 5,100 meals?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:

During the most recent month, the following activity was recorded:

1. Nineteen thousand two hundred and fifity pounds of material were purchased at a cost of $1.70 per pound.

2. All of the material purchased was used to produce 2,500 units of Zoom.

3. 400 hours of direct labor time were recorded at a total labor cost of $5,200.

Required:

1. Compute the materials price and quantity variances for the month.

2. Compute the labor rate and efficiency variances for the month.

(For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar

Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4]

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

1. The Marketing Department has estimated sales as follows for the remainder of the year (in units):

The selling price of the beach umbrellas is $13 per unit.

2. All sales are on account. Based on past experience, sales are collected in the following pattern:

Sales for June totaled $377,000.

3. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.

4. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:

5. Gilden costs $0.60 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $42,990.

Required:

1. Calculate the estimated sales, by month and in total, for the third quarter.

2. Calculate the expected cash collections, by month and in total, for the third quarter.

3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.

4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter.

5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.

6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.

Nb: the last 3parts ( Req4 and 5, Req 6) please

How do you calculate the force required for a bone to fracture when falling, given the bone cross-sectional area and body weight?

A curtain manufacturer receives three orders for curtain material with widths and lengths as follows:

Order number: 1 2 3

Width (m) : 2.5 3.8 4.9

Length (number of rolls) : 30 50 10

1 2.5 30 2 3.8 50 3 4.9 10 Rolls of curtain material are produced in two standard widths, 5 and 10 m. These can be cut to the sizes specified by the order. There is no practical length limitation as rolls can be joined together. Determine the production plan that minimizes the curtain material trim loss.

any new products undergo market testing before being launched on a full scale. Market testing is very common with consumer goods and with expensive industrial goods and new technologies.

summarize and discuss some of the market testing methods that are most commonly used in practice