Cost of Production Report: Average Cost Method

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:

Required:

Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. If required, round your cost per equivalent unit answer to two decimal places.

Cost of Production Report: Average Cost Method

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:

Required:

Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. If required, round your cost per equivalent unit answer to two decimal places.

Cost of Production Report: Average Cost Method

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:

Required:

Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. If required, round your cost per equivalent unit answer to two decimal places.

Thank you!!

The quantity of dissolved oxygen is a measure of water pollution in lakes, rivers, and streams. Water samples were taken at four different locations in a river in an effort to determine if water pollution varied from location to location. Location I was 500 meters above an industrial plant water discharge point and near the shore. Location II was 200 meters above the discharge point and in midstream. Location III was 50 meters downstream from the discharge point and near the shore. Location IV was 200 meters downstream from the discharge point and in midstream. The following table shows the results. Lower dissolved oxygen readings mean more pollution. Because of the difficulty in getting midstream samples, ecology students collecting the data had fewer of these samples. Use a 5% level of significance. Do we reject or not reject the claim that the quantity of dissolved oxygen does not vary from one location to another?

(b) Find SS_TOT, SS_BET, and SS_W and check that SS_TOT = SS_BET + SS_W. (Use 3 decimal places.)

Find d.f._BET, d.f._W, MS_BET, and MS_W. (Use 3 decimal places for MS_BET, and MS_W.)

Find the value of the sample F statistic. (Use 3 decimal places.)


What are the degrees of freedom?
(numerator)=
(denominator)=

(f) Make a summary table for your ANOVA test.

Maintaining a clean shopping environment is a key success factor for Turner?, a large grocery chain based in Minnesota. Three of the most costly resources needed to clean a supermarket are? labor, equipment, and cleaning supplies.

The cost driver for all these resources is? "number of times? cleaned." Wages for cleaning laborers? (called porters) and rent for cleaning equipment are the same regardless of the number of times the supermarket is cleaned. Supplies used for each regular daily cleaning and for each special cleaning are about the same. A typical store has 52,000 square feet. Regular cleaning is performed each day from midnight until? 7:00 AM. Special cleaning of floors and fixtures is performed in the various departments as needed. Special cleaning varies from 10 to 30 times a month depending on the amount of traffic through the store. ? Thus, the number of times a store is cleaned varies from 40 to 60 times a month.

Suppose that in one of Turner?'s stores in? Minneapolis, cleaning was performed 60 times during March. For the? month, the cost of labor and rent on equipment was $ 21,000 and cleaning supplies used cost $ 9,600. The sales budget for the next quarter? (April through? June) and better weather conditions indicate that the store will need to be cleaned 50?, 48?, and 35 times in? April, May, and June respectively.

Requirement 1. Prepare a table that shows how labor? cost, rent, cleaning supplies? cost, total? cost, and total cost per cleaning changes in response to the number of times the store is cleaned. Show costs for 35?, 40?, 45?, 50?, 55?, and 60 cleanings. What is the predicted total cost of cleaning the Minneapolis store for the next? quarter? ?(Round the cost per cleaning amounts to two decimal? places.

Prepare a table that shows how labor cost, rent, cleaning supplies cost, total cost, and total cost per cleaning changes in response to the number of times the store is cleaned. Show costs for 35, 40, 45, 50, 55, and 60 cleanings. What is the predicted total cost of cleaning the Minneapolis store for the next quarter?

2. Prepare a single graph that can be used to predict the fixed, variable, and total cleaning cost of the Turner store.

3. Suppose the manager of the Turner store can hire an outside cleaning company to clean the store as needed. The charge rate is $ 680 per cleaning. If the outside cleaning company is hired, Turner can lay off the workers who are now cleaning the store, eliminate the need for equipment rent, and stop purchasing cleaning supplies. Will Turner save money with the outside cleaning company over the next quarter? Prepare a schedule that supports your answer.

Perpetual Inventory Using FIFO

The following units of a particular item were available for sale during the calendar year:

The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

he beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows:

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary.

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of March 31.

1. The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
   

   Date	Transaction	Number of Units		Per Unit		Total
   Apr. 3	Inventory	25		$1,200		$30,000
   8	Purchase	75		1,240		93,000
   11	Sale	40		2,000		80,000
   30	Sale	30		2,000		60,000
   May 8	Purchase	60		1,260		75,600
   10	Sale	50		2,000		100,000
   19	Sale	20		2,000		40,000
   28	Purchase	80		1,260		100,800
   June 5	Sale	40		2,250		90,000
   16	Sale	25		2,250		56,250
   21	Purchase	35		1,264		44,240
   28	Sale	44		2,250		99,000

   Required:

   1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

   Dunne Co. Schedule of Cost of Merchandise Sold FIFO Method For a Three-Month Period
   	Purchases			Cost of Merchandise Sold			Inventory
   Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
   Apr. 3								$	$
   Apr. 8		$	$
   Apr. 11					$	$
   Apr. 30
   May 8
   May 10
   May 19
   May 28
   June 5
   June 16
   June 21
   June 28
   June 30	Balances					$			$

   2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account.

   Record sale	Accounts Payable Accounts Receivable Cash Merchandise Inventory Sales
   	Accounts Payable Accounts Receivable Cash Cost of Merchandise Sold Sales
   Record cost	Accounts Payable Cash Cost of Merchandise Sold Merchandise Inventory Sales
   	Accounts Payable Accounts Receivable Cash Cost of Merchandise Sold Merchandise Inventory

   3. Determine the gross profit from sales for the period.
   $

   4. Determine the ending inventory cost on June 30.
   $

   5. Based upon the preceding data, would you expect the inventory using the A method of inventory costing based on the assumption that the most recent merchandise inventory costs should be charged against revenue.last-in, first-out method to be higher or lower?

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 36 units @ $45 10 Sale 30 units 15 Purchase 17 units @ $47 20 Sale 12 units 24 Sale 8 units 30 Purchase 40 units @ $49 The business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Apr. 1 $ $ Apr. 10 $ $ Apr. 15 $ $ Apr. 20 Apr. 24 Apr. 30 Apr. 30 Balances $ $ b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for portable DVD players are as follows:

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.

a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below:

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Required:

1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system.

2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs):

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.)

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.)