total cost of 1940s hotel $200k-800k furnishing near 1880s park and theater questions

Questions

1. Norton Company’s manufacturing costs for 2009 were as follows: Direct materials, P300, 000; Direct labor...

1. Norton Company’s manufacturing costs for 2009 were as follows: Direct materials, P300, 000; Direct labor – P400, 000; Factory overhead variable – P80, 000 and fixed – P50, 000.

Prime cost
Conversion cost
Total manufacturing cost

2. The total maintenance costs of Silver Company in the last four months are presented below:

Month Machine hours Maintenance cost

January 7, 200 P450, 000

February 6, 800 P422, 000

March 7, 000 P440, 000

April 6, 400 P418, 000

Variable cost per machine hour
Total fixed cost
Budgeted maintenance cost in May if the company is planning to use 7, 500 hours.
Budgeted maintenance cost in May if the company is planning to use 8, 000 hours.

In: Accounting

McGuire Metals Ltd uses the periodic inventory method and had the following inventory information available: Units...

McGuire Metals Ltd uses the periodic inventory method and had the following inventory information available:

		Units	Unit Cost	Unit Price
1^st January	Beginning inventory	38	$3
20^th February	Sale	15		$5
25^th July	Purchase	20	$4
20^th October	Purchase	10	$5.5
20^th December	Sale	30		$8

Required

What would the Inventory amount be as reported on the balance sheet at 31 December 2019 if the perpetual LIFO method is used?

Use the following template in your Word document file.

Metro Computer Company Ltd.
FIFO
	Purchases			Cost of sales			Inventory on hand
Date	Quantity	Unit cost	Total cost	Quantity	Unit cost	Total cost	Quantity	Unit cost	Total cost

In: Accounting

The following data have been extracted from the records of Puzzle, Inc.: February August Production level,...

The following data have been extracted from the records of Puzzle, Inc.:

	February		August
Production level, in units		11,800		25,960
Variable costs	$	33,040	$	?
Fixed costs		?		32,500
Mixed costs		29,120		?
Total costs	$	94,660	$	161,212

Required:

a. Calculate the missing costs. (Do not round intermediate calculations.)

b. Calculate the cost formula for mixed cost using the high-low method. (Do not round intermediate calculations. Round "Variable cost" to 2 decimal places.)

cost formula _____ + _____ per unit

c. Calculate the total cost that would be incurred for the production of 16,949 units. (Do not round intermediate calculations.)

Total cost ____

d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c.

cost behavior pattern is ____ relevant range ____

In: Accounting

Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service...

Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December.

Raw materials were requisitioned from the company’s inventory on December 2 for $5,058; on December 8 for $1,056; and on December 14 for $3,459. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52.

Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $17.5 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52.

The predetermined overhead rate is based on machine hours. The expected machine hour use for the year is 2,110 hours, and the anticipated overhead costs are $844,000 for the year. The machines were used by workers on projects K52 and J57 on December 3, 9, and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours were used for project J57 (2.5 the first day and 3 each of the other days). Both of these special orders were completed on December 15, producing 200 sprinkler heads for J57 and 100 sprinkler heads for K52.

Additional job order activities during this period included:

Dec.	1	Purchased raw materials from Durbin Supply Company on account for $53,200.
Dec.	2	Issued $40,000 of direct materials from the company’s inventory to jobs other than K52 and J57 and $3,000 of indirect materials.
Dec.	12	Paid Waterways’ factory salaries and wages for $65,500.
Dec.	13	Paid the factory’s water bill of $8,900.
Dec.	18	Transferred $49,500 of costs from other completed jobs to finished goods.
Dec.	21	Paid the factory’s electric bill of $12,100 for Waterways’ factory.
Dec.	31	Made adjusting entries forth factory that included accrued property taxes of $12,000, prepaid insurance of $8,800, and accumulated depreciation of $16,100.

Set up the job cost sheets for Job No. J57 and Job No. K52. Determine the total cost for each manufacturing special order for these jobs. (Round unit costs to 2 decimal places, e.g. 12.25.)

	Job No. J57	Job No. K52
Total Cost	$	$
Unit Cost	$	$

Journalize the activities from these job cost sheets in the general journal. Also, journalize the other costs that occurred during this period. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit

	(To assign materials to jobs J57 & K52)

	(To assign materials to jobs and overhead)

	(To assign labor to jobs J57 & K52)
	(To assign overhead to jobs J57 & K52)

	(To assign labor to jobs J57 & K52)

	(To assign overhead to jobs J57 & K52)

	(To assign labor to jobs J57 & K52)

	(To assign overhead to jobs J57 & K52)

	(To record completion of jobs J57 & K52)

Assuming that Manufacturing Overhead has a debit balance of $3,600, determine whether overhead has been under/over applied and make the adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

In: Accounting

11. Average fixed cost a. decreases as output increases unless there is zero fixed cost. b....

11. Average fixed cost

a.	decreases as output increases unless there is zero fixed cost.
b.	may increase as output increases.
c.	is not related to output.
d.	None of the above.

12. Economies of scale occur when

a.	short-run average total costs rise as output increases.
b.	long-run average total costs fall as output increases.
c.	average fixed costs are increasing.
d.	All of the above.

13. Which of the following is a characteristic of a competitive market?

a.	Buyers and sellers are price makers.
b.	Each firm sells a differentiated product.
c.	Entry is unlimited.
d.	Each firm chooses a price level that maximizes profits.

14. Firms operating in competitive markets produce output levels where marginal revenue equals

a.	marginal cost.
b.	average revenue.
c.	total revenue divided by output.
d.	All of the above are correct.

15. If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then

a.	a one-unit increase in output will increase the firm's profit.
b.	a one-unit decrease in output will increase the firm's profit.
c.	total revenue exceeds total cost.
d.	total revenue equals total cost.

In: Economics

A quality control activity analysis indicated the following four activity costs of a manufacturing department: 1...

A quality control activity analysis indicated the following four activity costs of a manufacturing department:

1	Rework	$37,440.00
2	Inspecting incoming raw materials	51,840.00
3	Warranty work	25,920.00
4	Process improvement effort	172,800.00
5	Total	$288,000.00

Amount Descriptions
Appraisal
External failure
Internal failure
Lead time
Prevention
Setup time

Sales are $1,200,000. Prepare a cost of quality report. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round percents to one decimal place.

Cost of Quality Report

1	Quality Cost Classification	Quality Cost	Percent of Total Quality Cost	Percent of Total Sales
2
3
4
5
6	Total

In: Accounting

Rodriguez Company pays $320,000 for real estate plus $16,960 in closing costs. The real estate consists...

Rodriguez Company pays $320,000 for real estate plus $16,960 in closing costs. The real estate consists of land appraised at $207,000; land improvements appraised at $69,000; and a building appraised at $184,000.

Required:
1. Allocate the total cost among the three purchased assets.
2. Prepare the journal entry to record the purchase.

Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" answers to 2 decimal places.)

	Appraised Value	Percent of Total Appraised Value	x Total Cost of Acquisition	= Apportioned Cost
Land
Land improvements
Building
Totals	$0	0%		$0.00

Record the costs of lump-sum purchase.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

In: Accounting

Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption...

Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown:

Hi-Tek Manufacturing Inc. Income Statement
Sales	$	1,761,600
Cost of goods sold		1,237,964
Gross margin		523,636
Selling and administrative expenses		600,000
Net operating loss	$	(76,364	)

Hi-Tek produced and sold 60,300 units of B300 at a price of $21 per unit and 12,700 units of T500 at a price of $39 per unit. The company’s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company’s two product lines is shown below:

	B300		T500		Total
Direct materials	$	400,400	$	162,400	$	562,800
Direct labor	$	120,100	$	42,900		163,000
Manufacturing overhead						512,164
Cost of goods sold					$	1,237,964

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek’s ABC implementation team concluded that $50,000 and $110,000 of the company’s advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company’s manufacturing overhead to four activities as shown below:

Manufacturing
Overhead

Activity

Activity Cost Pool (and Activity Measure)

B300

T500

Total

Machining (machine-hours)

$

202,224

90,400

62,800

153,200

Setups (setup hours)

147,840

72

280

352

Product-sustaining (number of products)

101,400

1

2

Other (organization-sustaining costs)

60,700

NA

Total manufacturing overhead cost

$

512,164

REQUIREMENTS-

Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.)

	B300	T500	*Total*
Product margin			$0

Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.)

	B300			T500			Total
		% of			% of
	Amount			Amount			Amount
Traditional Cost System
			%			%
			%			%
			%			%
Total cost assigned to products	$0			$0			$0

Total cost							$0

	B300			T500			Total
		% of			% of
	Amount	Total Amount		Amount	Total Amount		Amount
Activity-Based Costing System
Direct costs:
			%			%
			%			%
			%			%
Indirect costs:
			%			%
			%			%
			%			%
Total cost assigned to products	$0			$0			0
Costs not assigned to products:


Total cost							$0

In: Accounting

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses...

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:


Insurance	$	3,350
Mortgage interest		6,650
Property taxes		2,800
Repairs & maintenance		860
Utilities		2,600
Depreciation		23,800

During the year, Alexa rented out the condo for 134 days. Alexa’s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume there are 365 days in the year.

Assume that in addition to renting the condo for 134 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $49,750 of gross rental receipts. Answer the following questions: (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days. (Amounts to be deducted should be indicated with a minus sign.)

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:


Insurance	$	3,350
Mortgage interest		6,650
Property taxes		2,800
Repairs & maintenance		860
Utilities		2,600
Depreciation		23,800

During the year, Alexa rented out the condo for 134 days. Alexa’s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume there are 365 days in the year.

Assume that in addition to renting the condo for 134 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $49,750 of gross rental receipts. Answer the following questions: (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days. (Amounts to be deducted should be indicated with a minus sign.)

In: Accounting

Builder Products, Inc. manufactures a caulking compound that goes through three processing stages prior to completion....

Builder Products, Inc. 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:
Units in process, May 1: 100% complete as to materials and 80% complete as to labour and overhead		16,700
Units started into production during May		127,000
Units completed and transferred out		117,000
Units in process, May 31: 60% complete as to materials and 20% complete as to labour and overhead		?
Cost data:
Work-in-process inventory, May 1:
Materials cost	$	2,850
Labour cost		3,760
Overhead cost		7,700
Cost added during May:
Materials cost		194,000
Labour cost		37,600
Overhead cost		90,400

Materials are added at several stages during the cooking process, whereas labour and overhead costs are incurred uniformly. The company uses the weighted average cost method. The company combines labour and overhead into a single cost category—conversion cost.

Required:

Prepare a production report for the cooking department for May. Use the following three steps in preparing your report:

1. Prepare a quantity schedule and a computation of equivalent units.

	Quantity Schedule
Units to be accounted for:
Work in process, May 1
Units brought into production and fully completed during the month
Total units	0

		Equivalent Units (EU)
	Units	Materials	Labour	Overhead
Units accounted for as follows:
Transferred out
Units brought into production and fully completed during the month
Total units and equivalent units of production	0	0	0	0

2. Compute the costs per equivalent unit for the month. (Round your answers to 3 decimal places.)

	Materials	Labour	Overhead
Costs per equivalent unit

3. Using the data from parts (1) and (2), prepare a cost reconciliation. (Round "Cost per equivalent unit" to 3 decimal places and the rest to the nearest dollar amount.)

Note: There is difference of "$28" in both the values due to rounding and we feel a note which reads: "Due to rounding, your "Cost accounted for" may not be equal to "Cost to account for"".

		Equivalent Units (EU)
	Total Cost	Materials	Labour	Overhead
Cost accounted for as follows:

Work in process, May 31:



Total work in process	0
Total cost	$0

4. Prepare a production report for the cooking department for May. Assuming the company uses the FIFO method. Follow parts (1) to (3). (Leave no cells blank, enter "0" wherever required. Round "Cost per equivalent unit" to 3 decimal places and the rest to the nearest dollar amount.)

Quantity Schedule and Equivalent Units

	Quantity Schedule
Units to be accounted for:


Total units	0

		Equivalent Units (EU)
	Units	Materials	Labour	Overhead
Units accounted for as follows:



Total units and equivalent units of production	0	0	0	0

Cost per Equivalent Unit

	Materials	Labour	Overhead
Costs per equivalent unit

Cost Reconciliation

Note: There is difference of "$28" in both the values due to rounding and we feel a note which reads: "Due to rounding, your "Cost accounted for" may not be equal to "Cost to account for"".

		Equivalent Units (EU)
	Total Cost	Materials	Labour	Overhead
Cost accounted for as follows:
Prior period cost in Work in Process, May 1	$14,310
Cost incurred during May:
To complete units in Work in Process, May 1



Total	0

To partially complete units in Work in Process, May 31



Total	0
Total cost	$14,310
Cost transferred out, May 31	$14,310

In: Accounting