Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June.

Required:

1. Calculate the Blending Department's equivalent units of production for materials and conversion in June.

2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June.

3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.

4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June.

5. Prepare a cost reconciliation report for the Blending Department for June.

1. Calculate the Blending Department's equivalent units of production for materials and conversion in June.

2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. (Round your answers to 2 decimal places.)

3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)

4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)

5. Prepare a cost reconciliation report for the Blending Department for June. (Round your intermediate calculations to 2 decimal places.)

Jennifer enjoys bowling and miniature golf. The extent of her enjoyment is revealed by the following utility schedule:

a) Compute Jennifer’s marginal utility for each activity.

b) Assume that initially that the price for a bowling game is $2 and for a miniature golf game is $1 per game. Given a budget of $8, how many games of each should Jennifer play to maximize her total enjoyment from playing?

c) How many games of each should Jennifer play if the price of golf game remains $1 but the price of a game of bowling decreases to $1 per game?

d) Draw Jennifer's demand curve for bowling games.

3. From the following information on costs of production of the ABC corporation, calculate a) Total Fixed Cost (TFC), Total Variable Cost (TVC), Average Fixed Cost (AFC), Average Variable Cost (AVC), Average Total Cost (ATC).

Quantity Produced        Total Cost

         0                         $ 120
         1                            135
         2                            149
         3                            162
         4                            174
         5                            188
         6                            204
         7                            224
         8                            247
         9                            275

1. Given the following, depict fully and explain break-even in units, break-even in dollars, total revenue line, total cost line, fixed cost line, break-even point, etc.

Fixed Cost: $120,000

Sales per Unit: $15.00

Variable cost per Unit: $3.00

Include a discussion regarding sensitivity analysis for an inelastic product.

4. Working with Numbers and Graphs Q4

Suppose that explicit costs are $13,000 and implicit costs equal zero.

If economic profit is $14,000, then accounting profit is_________________.

Landers Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May

   Standard cost per unit Actual costs used in production of 12,000 units

Direct materials 1.80 feet at $3.00 per foot 24,000 feet purchased at a total cost of $69,900,

used only 21,000 feet in production

Direct labor    0.90 hours at $18.00 per hour   11,400 hours at $17.40 per hour

Variable overhead 0.90 hours at $5.00 per hour   11,400 hours at a total cost of $62,600

Required: 1. Compute the total standard cost per unit and total actual cost per unit. How much is the difference between the actual unit costs and the standard cost?

2. Compute the following variances for May:

a. Materials quantity and price variances.

b. Labor efficiency and rate variances.

c. Variable overhead efficiency and rate variances.

3. Discuss the main reasons for the difference between the actual unit costs and the standard cost you computed in (1).

Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $2,125,000 + $375X, where X = Number of Heart Stents. Last year, Alisha produced 75,000 stents. Actual maintenance costs for the year were as expected.

Required:

If required, round your answers to the nearest cent.

1. What is the total maintenance cost incurred by Alisha last year?

$

2. What is the total fixed maintenance cost incurred by Alisha last year?

$

3. What is the total variable maintenance cost incurred by Alisha last year?

$

4. What is the maintenance cost per unit produced?

$ per unit

5. What is the fixed maintenance cost per unit?

$ per unit

6. What is the variable maintenance cost per unit?

$ per unit

7. Alisha management could improve its cost function to better understand past maintenance costs and predict future maintenance costs by.

Pareto Chart and Cost of Quality Report for a Manufacturing Company

The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows:

The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap.

Required:

1. On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above. Answer the following:

What type of chart is a Pareto chart?

Which activity appears first, in order from left to right?

2. Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Classify the activities into value-added and non-value-added activities.

3. Use the activity cost information to determine the percentages of total costs that are prevention, appraisal, internal failure, external failure, and not costs of quality (producing product).

4. Determine the percentages of total department costs that are value-added and non-value-added.

5. The department has ___% of its total costs as non-value-added. Internal failure costs represent ___% of the total costs. This means there is significant opportunity for cost savings. External failure costs represent ___% of the total department costs.

A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:

Machine Cost

A $ 60,000

B $ 50,000

C $ 60,000 Product forecasts and processing times on the machines are as follows:

PROCCESSING TIME PER UNIT (minutes) Product Annual Demand

Product Annual Demand Processing time per unti (minutes)

   A B C

1 25,000 1 1 5

2 14,000 1 6 3

3   20,000 1 3 4

4 6,000 6 4 2

a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 8 hours a day, 250 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number.

Omit the "$" sign.) Total processing time in minutes per machine: A B C Number of each machine needed and total purchasing cost A $ B $ C $ b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $15 each, B machines have an hourly operating cost of $12 each, and C machines have an hourly operating cost of $14 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.) Total cost for each machine A B C This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 5 of 5 Total5 of 5 Prev

Data:

1.

Fill in the time line for the Drying​ Department's process.

2.

Use the time line to compute the number of equivalent units of work performed by the Drying Department during the​ period, the cost per equivalent​ unit, and the total costs to account for.

3.

Assign total costs to​ (a) units completed and transferred to the assembly operation and​ (b) units in the Drying​ Department's ending work in process inventory.

Requirement 1. ​Fill-in the time line for the Drying Department.

Requirement 2. Use the time line to compute the number of equivalent units of work performed by the Drying Department during the​ period, the cost per equivalent​ unit, and the total costs to account for.

​Let's begin by to computing the number of equivalent units of work performed by the Drying Department during the period.

​Next, compute the cost per equivalent unit. ​(Round the cost per equivalent unit to the nearest​ cent.)

Requirement 3. Assign total costs to

​(a​)

units completed and transferred to the assembly operation and

​(b​)

units in the Drying​ Department's ending work in process inventory. ​(Enter quantities​ first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Round your answers to the nearest whole​ dollar.)

Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory

Inventory: Periodic, LIFO for both baking and merchandise

Baking supplies: $27,850 ending inventory

Equipment: Straight line method used for equipment