Cost Behavior

SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $584,685 + $1.42X, where X equals number of smokers. Last year, SmokeCity produced 21,300 smokers. Actual overhead costs for the year were as expected.

Required:

2. What is the total overhead cost incurred by SmokeCity last year?

$

3. What is the total fixed overhead cost incurred by SmokeCity last year?

$

4. What is the total variable overhead cost incurred by SmokeCity last year?

$

For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary.

5. What is the overhead cost per unit produced?

$ per unit

6. What is the fixed overhead cost per unit?

$ per unit

7. What is the variable overhead cost per unit?

$ per unit

8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 21,000 units and (b) 22,800 units. Round your answers to the nearest cent.

Problem 12-88B (Algorithmic)
Using Common Size Statements

Groff Graphics Company owns and operates a small chain of sportswear stores located near colleges and universities. Groff has experienced significant growth in recent years. The following data are available for Groff:

Required:

1. Calculate how much Groff's sales, net income, and assets have grown during these 3 years. Round your answers to the nearest whole percent.

2. Explain how Groff has financed the increase in assets.

Groff financed its asset growth through an increase in retained earnings and an increase in current liabilities.

3. Conceptual Connection: Is Groff's liquidity is adequate?
Yes

4. Conceptual Connection: Why is interest expense growing?

Because short-term notes payable is increasing.

5. If Groff's sales grow by 25% in 2020, what would you expect net income to be? Round your answer to the nearest dollar. Use your answer in the following calculations.
$

6. If Groff's assets must grow by 25% to support the 25% sales increase and if 50% of net income is paid in dividends, how much capital must Groff raise in 2020? Round your answer to the nearest cent.
$

Using Common Size Statements

Groff Graphics Company owns and operates a small chain of sportswear stores located near colleges and universities. Groff has experienced significant growth in recent years. The following data are available for Groff:

Required:

1. Calculate how much Groff's sales, net income, and assets have grown during these 3 years. Round your answers to the nearest whole percent.

2. Explain how Groff has financed the increase in assets.

Groff financed its asset growth through an increase in retained earnings and an increase in current liabilities.

3. Conceptual Connection: Is Groff's liquidity is adequate?
Yes

4. Conceptual Connection: Why is interest expense growing?

Because short-term notes payable is increasing.

5. If Groff's sales grow by 25% in 2020, what would you expect net income to be? Round your answer to the nearest dollar. Use your answer in the following calculations.
$

6. If Groff's assets must grow by 25% to support the 25% sales increase and if 50% of net income is paid in dividends, how much capital must Groff raise in 2020? Round your answer to the nearest cent.
$

Inventory Costing Methods-Periodic Method Spangler Company is a retailer that uses the periodic inventory system.

March

1 Beginning inventory 110 units of Product M @ $1,590 total cost

6 Purchased 210 units of Product M @ $3,600 total cost

10 Purchased 160 units of Product M @ $3,000 total cost

15 Sold 190 units of Product M

Calculate the March cost of goods sold and the ending inventory at March 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Do not round until your final answers. Round your final answers to the nearest dollar.

A. First-in, first-out Ending Inventory

Cost of Goods Sold

B. Last-in, first-out Ending Inventory

Cost of Goods Sold

C. Weighted-average cost Ending Inventory

Cost of Goods Sold

1. The financial statements of Michelle Company included these items.

                                Marketing costs                                                      P128, 000

                                Direct labor costs                                                    P320, 000

                                Administrative costs                                               P94, 000

                                Direct materials used                                             P385, 000

                                Fixed factory overhead costs                                 P285, 000

                                Variable factory overhead costs                             P175, 000

1. Prime cost
2. Conversion cost
3. Total product cost
4. Total period cost

2. The following data are available for Smith Corporation for the year ending December 31, 2009

                                                                                                January 1                                                 December 31

Inventories                                             

                Materials                                                                P100, 000                                                P150, 000

                Work in process                                                      P180, 000                                                P128, 000

                Finished Goods                                                       P90, 000                                                  P110, 000

Direct labor cost                                                                                                                                     P290, 000

Materials purchased                                                                                                                               P320, 000

Factory overhead – applied at 120% of direct labor cost

1. Direct materials used
2. Total manufacturing cost
3. Cost of good manufactured
4. Cost of goods sold

Fremont, which uses the high-low method, reported total costs of $10.40 per unit at its lowest production level, 5,000 units. When production tripled to its highest level, the total cost per unit dropped to $6.40. Fremont would estimate its total fixed cost as:    

$6.40

$30,000

$52,000

$16.80

For PYTHON

You come into the fast food restaurant with a friend. Each of you orders separately, but everything will appear on one receipt. Print the total per cost person and the total of the receipt. Calculate the sales tax and print the total cost assuming the following prices:

Fries are $3.50

Burger are $5.00

Drinks are $1.00

Sales tax rate is 7.25%

Cassatt Industries is facing a dilemma. During the COVID 19 "Stay at Home" period, many people developed new hobbies. The demand for paint sets increased dramatically. Due to supply chain interruptions, the cost materials to make those paint sets also increased. Cassatt Industries manufactures only two products, Water-Color Paint Sets and Oil-Based Paint Sets. To generate adequate profit and cover its expenses throughout the value chain, Cassatt prices its paint sets at 400% of manufacturing cost. The company is concerned because of the shortage of some materials. The owner Mary Cassatt CEO questions whether the cost numbers generated by the accounting system are correct. She has just learned about ABC and wants to reanalyze her pricing a cost structure based upon anticipated costs using an ABC system.

Information about the company’s products this year are expected to be as follows:

Water-Color Sets

Total direct material costs: $800,000

Total direct labor cost: $300,000

Production volume: 300,000 Water-Color paint sets

Oil-Based Sets

Total direct material cost: $1,200,000

Total direct labor cost: $600,000

Production volume: 20,000 Oil-Based Paint Sets

Currently, the company applies manufacturing overhead on the basis of direct labor hours. The company incurred $900,000 of manufacturing overhead this year and 20,000 direct labor hours (7,000 direct labor hours making Water-Color sets and 13,000 making Oil-Based sets). The ABC team identified three primary production activities that generate manufacturing overhead costs:

Materials Handling ($100,000); driven by the number of material orders handled

Machine Processing ($600,000); driven by machine hours

Packaging ($200,000); driven by packaging hours

The company’s only two products required the following activity levels during the year:

Requirements:

1. Using the company’s current costing system (volume-based costing) find the total unit cost of producing one Water-Color Paint Set
2. Using the company’s current costing system (volume-based costing) find the total unit cost of producing one Oil Based Paint Set
3. Using Activity-Based Costing find the total unit cost of producing one Water-Color Paint Set
4. Using Activity-Based Costing find the total unit cost of producing one Oil Based Paint Set

Round to the nearest penny and express your answers in the form $99.99.

Question 1 15 pts

Using the company’s current costing system (volume-based costing) find the total unit cost of producing one Water-Color Paint Set. Round to the nearest penny and express your answers in the form $99.99.

Question 2 15 pts

Using the company’s current costing system (volume-based costing) find the total unit cost of producing one Oil Based Paint Set

Question 3 20 pts

Using Activity-Based Costing find the total unit cost of producing one Water-Color Paint Set

Question 4 20 pts

Using Activity-Based Costing find the total unit cost of producing one Oil Based Paint Set

Mickey Mouse Lets You Ride "for Free" At Disney World

• Walt Disney World Theme Parks offer visitors a wide variety of ticket choices.
• The one thing these ticket options have in common is that they entail a fixed entrance fee and allow customers to take as many rides as they want at no additional charge.
• For instance, by purchasing a 1-Day ticket for about $66, a customer gains unlimited access to the park of her choice for one day.
  • Wouldn't Disney earn higher profits if it charged visitors, say, $11, each time they went on a ride?

• Remember to research the topic.

BUSINESS TRAVEL EXPENSES An executive of Trident Communications recently traveled to London, Paris, and Rome. She  paid $280, $330, and $260 per night for lodging in London, Paris, and Rome, respectively, and his hotel bills totaled $4060. She spent $130, $140, and $110 per day for his meals in London, Paris, and Rome, respectively, and his expenses for meals totaled $1800. If she spent as many days in London as she did in Paris and Rome combined, how many days did she stay in each city? Solve using Gauz Jordan method.