Beginning inventory, purchases, and sales for an inventory item are as follows:
Purchases Cost of Goods Sold Inventory
Event Unit Cost Total Cost Unit Cost Total Cost Total Cost QTY Bought Qty sold Qty Unit Cost
Beginning Inventory 150 755
First Sale 120
First Purchase 400 785
Second Sale 200
Second Purchase 300 805
Sale 290
The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year
A. What is the total cost of ending inventory according to FIFO?
B. What is the cost of ending inventory according to LIFO?
C. What is the cost of ending inventory using weighted average cost. Round to the nearest dollar.
In: Accounting
axbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,200 units, its average costs per unit are as follows:
| Average Cost per Unit |
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| Direct materials | $ | 5.10 | |
| Direct labor | $ | 3.45 | |
| Variable manufacturing overhead | $ | 1.40 | |
| Fixed manufacturing overhead | $ | 3.50 | |
| Fixed selling expense | $ | 0.60 | |
| Fixed administrative expense | $ | 0.45 | |
| Sales commissions | $ | 0.35 | |
| Variable administrative expense | $ | 0.35 | |
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,200 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,200 units?
c. If 6,200 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)
d. If 6,200 units are sold, what is the total amount of variable costs related to the units sold?
e. If 6,200 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.)
f. If 6,200 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 6,200 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to 2 decimal places.)
h. If the selling price is $22.60 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.)
i. If 4,200 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 4,200 units are produced, what is the total amount of indirect manufacturing cost incurred?
k. What incremental manufacturing cost will the company incur if it increases production from 5,200 to 5,201 units? (Round "Per unit" answer to 2 decimal places.)
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In: Accounting
In: Economics
Which of the following statements is true?
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Managers may choose to retain an unprofitable product line if the line helps sell other products. |
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A danger in allocating traceable fixed costs is that such allocations can make a product line look less profitable than it really is. |
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Product lines that do not cover all costs, including common fixed costs, should be dropped. |
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Allocating common fixed costs among product lines is necessary to determine which product lines are profitable. |
3 points
QUESTION 12
What guideline should be used in determining whether a joint product should be sold at the split-off point or processed further?
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If the incremental revenue from further processing exceeds the incremental costs of further processing, the product should be processed further. |
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If the incremental revenue from further processing exceeds the joint costs, the product should be processed further. |
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If the incremental costs from further processing exceed the incremental revenue of further processing, the product should be processed further. |
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If the incremental costs from further processing exceeds the joint costs, the product should be processed further. |
3 points
QUESTION 13
Frank's Drapery Cleaning is estimating the following sales figures for the next four months:
| Cash Sales | Credit Sales | Total Sales | |
| Jan | $1500 | $18000 | $19500 |
| Feb | $2200 | $26400 | $28600 |
| March | $1800 | $21600 | $23400 |
| April | $2000 | $24000 | $26000 |
Frank has the following collection pattern on credit sales: 60% in month of sale; 30% in month after sale; 10% in second month after sale. What are Frank's budgeted cash receipts for March?
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$24,080 |
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$24,480 |
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$23,920 |
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$24,570 |
4 points
QUESTION 14
Kathy's budgeted production figures (in units) for sweatshirts for next quarter are shown below:
July August September
Budgeted production 3,600 4,100 5,000
Kathy uses 1.2 yards of fabric per sweatshirt and pays $0.75 per
yard. Kathy likes to have half of the next month's fabric needs in
ending inventory. What is the expected cost of fabric to be
purchased in August?
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$4,095 |
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$4,550 |
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$5,460 |
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$3,285 |
4 points
QUESTION 15
The following information is from the October cash budget of Daniel's Pet Accessories Shop:
Excess of Cash available over disbursements $800
Cash Balance on Oct. 1 $10,100
Total Cash Disbursements $32,500
Daniel is required to maintain a minimum cash balance of $10,000,
how much money should he plan to borrow in October?
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$10,000 |
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$22,400 |
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$9,200 |
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$21,600 |
4 points
QUESTION 16
The following information is available for Park Corporation for the month of July:
Cash collections $63,800
Dividends paid in July $4,000
Selling expenses $33,400
Administrative expenses $29,000
Depreciation expense on equipment $2,000
Cash Balances July 1 $900
Park does not have any accounts receivable or accounts payable.
What will be the amount of cash disbursements for the month of July
and the excess or deficiency of cash for the month of July,
respectively?
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$68,400 cash disbursed and $3,700 deficiency of cash |
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$68,400 cash disbursed and $4,600 deficiency of cash |
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$66,400 cash disbursed and $1,700 deficiency of cash |
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$62,400 cash disbursed and $2,300 excess cash |
In: Accounting
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
| Direct materials | $ | 74,000 | ||||
| Direct labor | $ | 37,500 | ||||
| Variable manufacturing overhead | $ | 17,000 | ||||
| Fixed manufacturing overhead | 29,500 | |||||
| Total manufacturing overhead | $ | 46,500 | ||||
| Variable selling expense | $ | 13,000 | ||||
| Fixed selling expense | 20,000 | |||||
| Total selling expense | $ | 33,000 | ||||
| Variable administrative expense | $ | 4,500 | ||||
| Fixed administrative expense | 26,000 | |||||
| Total administrative expense | $ |
30,500 |
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3. With respect to cost classifications for manufacturers:
a. What is the total manufacturing cost?
b. What is the total nonmanufacturing cost?
c. What is the total conversion cost and prime cost?
In: Accounting
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 8.30 |
| Direct labor | $ | 5.30 |
| Variable manufacturing overhead | $ | 2.80 |
| Fixed manufacturing overhead | $ | 6.30 |
| Fixed selling expense | $ | 4.80 |
| Fixed administrative expense | $ | 3.80 |
| Sales commissions | $ | 2.30 |
| Variable administrative expense | $ | 1.80 |
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 25,250 units?
b. What is the total indirect manufacturing cost incurred to make 25,250 units?
2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 units.
a. How much total manufacturing cost is directly traceable to the Manufacturing Department?
b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?
3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $95,950 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation.
a. When the company sells 25,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives?
b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
Complete this question by entering your answers in the tabs below.
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 25,250 units? (Round per unit values to 2 decimal places.)
b. What is the total indirect manufacturing cost incurred to make 25,250 units? (Round per unit values to 2 decimal places.)
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2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 units.
a. How much total manufacturing cost is directly traceable to the Manufacturing Department? (Round per unit values to 2 decimal places.)
b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?
Show less
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3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $95,950 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation.
a. When the company sells 25,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives? (Round per unit value to 2 decimal places.)
b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
Show less
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In: Accounting
National Corporation needs to set a target price for its newly designed product M14–M16. The following data relate to this new product.
| Per Unit | Total | |||||
|---|---|---|---|---|---|---|
| Direct materials | $20 | |||||
| Direct labor | $39 | |||||
| Variable manufacturing overhead | $10 | |||||
| Fixed manufacturing overhead | $1,501,000 | |||||
| Variable selling and administrative expenses | $ 1 | |||||
| Fixed selling and administrative expenses | $ 869,000 | |||||
These costs are based on a budgeted volume of 79,000 units produced
and sold each year. National uses cost-plus pricing methods to set
its target selling price. The markup percentage on total unit cost
is 40%.
Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14–M16.
| Variable cost per unit | |||
|---|---|---|---|
| Fixed cost per unit | |||
| Total cost per unit |
Compute the desired ROI per unit for M14–M16.
| Desired ROI | $enter the desired ROI per unit in dollars | per unit |
Compute the target selling price for M14–M16.
| Target selling price per unit | $enter the target selling price per unit in dollars |
Compute variable cost per unit, fixed cost per unit, and total
cost per unit assuming that 59,250 M14–M16s are produced and sold
during the year.
| Variable cost per unit | |||
|---|---|---|---|
| Fixed cost per unit | |||
| Total cost per unit |
In: Accounting
You manage the shipping of item #A452 from your supplier. The shipments for this item are delivered to the nearest port, and you have to transport them to the distribution center. You have two options, truck load (TL) and less than truck load (LTL).
Your company needs 5000 units of #A452 per year and it is purchased at a price of $36 per unit. Each order costs $90. Your company uses a holding charge of 0.1, a cycle service level of 90% and 365 days per year for planning purposes.
The truck load (TL) option costs $1200 per load. It takes 4 days to deliver and each truck can carry up to 1300 items.
The less than truck (LTL) load option costs $2.0 per item. It takes 6 days to deliver.
You have three options,
OPTION A: to use the TL option and delivery full truck loads,
OPTION B: to use the TL option and delivery the economic order quantity
OPTION C: to use LTL option and deliver the economic order quantity.
For all following parts, consider transportation costs as an item cost unless otherwise specified. i.e., the total variable cost of #A452 in the Full truckload is $1200/1300items + $36/item = $36.9230769231/item.
What is the sum of average pipeline and cycle inventory, ordering, and purchase costs for option A? Please provide your answers rounded to the closest dollar. (Please note that the answer is 184828, or near, is just i do not know how to compute it. Please kindly show your working here.)
In: Accounting
As a computer and networking consultant to small businesses, you are frequently asked to find solutions to increasing demands for network and Internet access at a business. One business rents offices in a historical building that has strict rules for wiring. They have come to you asking for a solution for providing Wi-Fi access to their guests in the lobby of the building. Research options for a solution and answer the following questions: 1. Print or save webpages showing two options for a Wi-Fi wireless access point that can mount on the wall or ceiling. For one option, select a device that can receive its power by PoE from the network cable run to the device. For the other option, select a device that requires an electrical cable to the device as well as a network cable. 2. Print or save two webpages for a splitter that can be mounted near the second wireless access point that splits the power from data on the network cable. Make sure the power connectors for the splitter and the access point can work together. 3. To provide PoE from the electrical closet on the network cable to the wireless access point, print or save the webpage for an injector that injects power into a network cable. Make sure the voltage and wattage output for the injector are compatible with the needs of both wireless access points. 4. You estimate the distance for network cabling from the switch to the wireless access point is about 200 feet (61 meters). What is the cost of 200 feet of PVC CAT-6a cabling? For 200 feet of plenum CAT-6a cabling? For 200 feet of plenum CAT-7 cabling? 5. Of the options you researched, which option do you recommend? Using this option, what is the total cost of the Wi-Fi hotspot?
In: Computer Science
Soft Serve Hut sells frozen yogurt to customers. The monthly fixed costs of operating the business include things like rent and depreciation of equipment. The variable costs of the business include the cost of materials, supplies and labor. In a month when 10,000 frozen yogurts were sold, the fixed cost was $8,500 and the variable costs were $2,000. (Assume all costs are within the relevant range.) Show all work.
A) At the current level, what is the total cost per unit? $
If sales increase to 17,000 frozen yogurts:
B) What is the expected fixed cost? $
C) What is the expected variable cost? $
D) What is the total expected cost? $
E) What is the expected total cost per unit? $
If sales decreased to 4,250 frozen yogurts:
F) What is the expected fixed cost? $
G) What is the expected variable cost? $
H) What is the total expected cost? $
I) What is the expected total cost per unit? $
In: Accounting