D.B. Smith Company produces machine tools. The company conducted a cost-of-quality study and found the following:
| Cost Category | Amount | |
| Quality equipment design | $ | 28,000 |
| Scrap | 332,000 | |
| Inspection and retest | 336,000 | |
| Customer returns | 85,000 | |
| Supplier quality surveys | 7,000 | |
| Repair | 70,000 |
What quality cost categories should each of these costs be associated with? What does a Pareto analysis reveal? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Questions
1. Classifying the D.B. Smith Company cost elements into the appropriate cost-of-quality categories, calculate the total costs in each category and their percentages of the total and cumulative percentages. Round your answers for the total costs to the nearest dollar and round your answers for the percentages to two decimal places.
| Quality Cost Category | Amount | Percent of Total | Cumulative Percentage | |||
| Internal failure | $ | % | % | |||
| Appraisal | $ | % | % | |||
| External failure | $ | % | % | |||
| Prevention | $ | % | % | |||
| Total | $ | % |
2. Choose the correct graph for the cost-of-quality categories.
In: Operations Management
SHOW WORK PLEASE!
Problem 5-16 Comprehensive Problem-Weighted-Average Method [LO5-2, LO5-3, LO5-4, LO5-5]
Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May:
| Production data: | ||
| Pounds in process, May 1;
materials 100% complete; conversion 90% complete |
82,000 | |
| Pounds started into production during May | 470,000 | |
| Pounds completed and transferred out | ? | |
| Pounds in process, May 31;
materials 70% complete; conversion 30% complete |
42,000 | |
| Cost data: | ||
| Work in process inventory, May 1: | ||
| Materials cost | $ | 152,300 |
| Conversion cost | $ | 52,300 |
| Cost added during May: | ||
| Materials cost | $ | 791,650 |
| Conversion cost | $ | 287,390 |
Required:
1. Compute the equivalent units of production for materials and conversion for May.
2. Compute the cost per equivalent unit for materials and conversion for May.
3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.
4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May.
5. Prepare a cost reconciliation report for May.
Required 1
Equivalent units of production => Materials: Conversion:
Required 2
Cost per equivalent unit => Materials: Conversion:
Required 3
Cost of ending work in process inventory=> Materials: Conversion: Total:
Required 4
Cost of units completed and transferred out=> Materials: Conversion: Total:
Required 5
Cost of reconciliation
| Costs to be accounted for | |
| Total cost to be accounted for | |
| Costs accounted for as follows: | |
| Total cost accounted for |
In: Accounting
Oahu Kiji tracks the number units purchased and sold throughout each accounting period but applies it’s inventory costing method at the end of each month uses periodic inventory.,assume KIki’s records show the following for the month of janauarsy. Sales totaled 310
BI January 1 240 units cost $80 total 19200
Purchase January 15 360 units cost 90 total 32400 . Purchase
January 14 200 units cost 110 total cost 22000. Sales total
310
Number of goods available for said 800 units and cost of goods is 73,600
What would my ending inventory be and why/how?
Use FIFO, LIFO and weighted average
In: Accounting
|
VWX.Clinic offers a dentistry treatment. You are the manager, the owner asks you how much to charge to maximize profits. The demand curve for the treatments and their total costs are given in table 1. a. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. b. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits? |
Table 1
| Quantity | Price | Total Revenue | Marginal Revenue | Total Cost | Marginal Cost | Average Cost |
| 0 | 431250 | 6375000 | ||||
| 20 | 375000 | 7500000 | ||||
| 30 | 337500 | 9000000 | ||||
| 40 | 300000 | 10875000 | ||||
| 50 | 262500 | 13125000 | ||||
| 60 | 225000 | 15750000 | ||||
| 70 | 187500 | 19125000 | ||||
| 80 | 150000 | 24000000 |
In: Economics
Mead Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows:
| Existing Equipment | Replacement Equipment | ||||||
| Cost | $ | 300,000 | Cost | $ | 250,000 | ||
| Operating expenses* | 240,000 | Operating expenses* | 160,000 | ||||
| Salvage value | 40,000 | Salvage value | 40,000 | ||||
| Market value | 120,000 | Useful life | 8 | years | |||
| Book value | 90,000 | ||||||
| Remaining useful life | 8 | years | |||||
*The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment.
Required
Calculate the total relevant cost of existing equipment and the potential replacement equipments. Should the equipment be replaced?
Total cost new?
Total cost old?
In: Accounting
A firm is planning to manufacture a new product. The sales department estimates that the quantity that can be sold depends on the selling price. As the selling price is increased, the quantity that can be sold decreases. On the other hand, the management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increases. Numerically they estimate:
P = $35.00–0.02Q
C = $4.00Q + $8000
P = selling price per unit
Q = quantity sold per year
C = cost to produce and sell Q per year
The firm’s management wishes to produce and sell the product at the rate that will maximize profit, that is, where total revenue (P*Q) minus total cost (C) will be a maximum. What quantity should they plan to produce and sell each year? Be sure to include a graphical representation of total revenue and total cost. Within the graphical representation indicate where the breakeven (total revenue = total cost) points are, where the profit region is, and the point at which maximum profit is achieved.
In: Economics
The following data pertain to the Vesuvius Tile Company for July.
Work in process, July 1 (in units) .......................................................................................................................20,000
Units started during July ...................................................................................................................................?
Total units to account for ..................................................................................................................................65,000
Units completed and transferred out during July ................................................................................................?
Work in process, July 31 (in units) .....................................................................................................................15,000
Total equivalent units: direct material .................................................................................................................65,000
Total equivalent units: conversion ......................................................................................................................?
Work in process, July 1: direct material .............................................................................................................$164,400
Work in process, July 1: conversion ...................................................................................................................?
Costs incurred during July: direct material .........................................................................................................?
Costs incurred during July: conversion ..............................................................................................................659,400
Work in process, July 1: total cost .....................................................................................................................244,200
Total costs incurred during July .........................................................................................................................1,031,250
Total costs to account for ..................................................................................................................................1,275,450
Cost per equivalent unit: direct material .............................................................................................................8.25
Cost per equivalent unit: conversion ..................................................................................................................?
Total cost per equivalent unit ............................................................................................................................21.45
Cost of goods completed and transfered out during July ......................................................................................?
Cost remaining in ending work-in-process inventory: direct material ...................................................................?
Cost remaining in ending work-in-process inventory: conversion .........................................................................79,200
Total cost of July 31 work in process .................................................................................................................202,950
Additional Information:
a. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.
b. The company uses weighted-average process costing.
c. The July 1 work in process was 30 percent complete as to conversion.
d. The July 31 work in process was 40 percent complete as to conversion.
Problem 4–27 Missing Data; Production Report; Weighted-Average (LO 4, 5, 6)
Cost remaining in ending work-in-process inventory, direct material: $123,750
Total cost of July 31 work in process: $202,950
Chapter 4 Process Costing and Hybrid Product-Costing Systems 159
Required: Compute the missing amounts, and prepare the firm’s July production report
In: Accounting
For the project with the five activities given below, you are required to crash the project duration from its original duration to a final duration of 14 days. Assuming a daily indirect cost of $100, what is the total cost of the project with a duration of 14 days.
For the project with the five activities given below, you are required to crash the project
duration from its original duration to a final duration of 14 days. Assuming a daily
indirect cost of $100,
what is the total cost of the project with a duration of 14 days
.
Duration (days)
Cost ($)
Cost slope
Activity
IPA
Normal
Crash
Normal
Crash
A
-
3
1
2,000
5,000
B
A
5
2
3,000
6,000
C
A
3
2
3,000
5,000
D
A
8
3
3,000
8,000
E
B,C,D
5
3
1,000
2,000
Total Direct Cost before Crashing
Draw a Network Diagram (with the Crashing shown) below:
Compression
Cycle
Activity
Compression
days
Amount
Project
Duration
Direct
Cost
Indirect
Cost
Total
Cost
0
-
-
-
1
In: Civil Engineering
1. 2 Assume that a cardiologist group practice has the following cost structure:
Fixed Cost: $500,000 Variable Cost Per Procedure: $25
Furthermore, assume that the group expects to perform 7,500 procedures in the coming year.
A. What is the group’s underlying cost structure?
B. What are the groups expected total cost?
C. What are the groups' estimated total costs at 5,000 procedures? At 10,000 procedures?
D. What is the average cost per procedure at 5,000, 7,500 and 10,000 procedures?
|
|||
|
Number of Visits |
10,000 |
Utilities |
$2,500 |
|
Wages and Benefits |
$220,000 |
Medical Supplies |
$50,000 |
|
Rent |
$5,000 |
Administrative Supplies |
$10,000 |
|
Depreciation |
$30,000 |
||
|
Assume that all costs are fixed except supplies costs, which are variable. |
|||
|
|||
|
|||
|
|||
|
|||
In: Finance
GENERAL INSTRUCTIONS
Data should be analyzed in Excel. Everything should be appropriately labeled.
In: Statistics and Probability