PEP uses a cost-plus model to determine the price it charges students. Specifically, the Company charges cost plus 20% of cost. Fixed costs, including facility rental and instructor compensation, amount to $6,500 per month. PEP incurs variable costs for books and supplies that amount to $55 per student. Monthly, enrollment tends to fluctuate. The following data represent the Company's expectations for the first three months of the current year.
| Month | January | February | March | Total | ||||||||
| No. of Students | 30 | 35 | 35 | 100 | ||||||||
| Total Variable Cost | $ | 1,650 | $ | 1,925 | $ | 1,925 | $ | 5,500 | ||||
| Total Fixed Cost | $ | 6,500 | $ | 6,500 | $ | 6,500 | $ | 19,500 | ||||
Based on this information which of the following amounts represents the average price PEP should charge per student for the month of January.
$250.00
$300.00
$271.67
$326.00 Please provide step by step solutions and formulas
In: Accounting
Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows:
| Inventories | January 1 | January 31 | ||
| Materials | $184,500 | $158,670 | ||
| Work in process | 121,770 | 104,720 | ||
| Finished goods | 94,100 | 106,310 | ||
| Direct labor | $332,100 | |
| Materials purchased during January | 354,240 | |
| Factory overhead incurred during January: | ||
| Indirect labor | 35,420 | |
| Machinery depreciation | 21,400 | |
| Heat, light, and power | 7,380 | |
| Supplies | 5,900 | |
| Property taxes | 5,170 | |
| Miscellaneous costs | 9,590 | |
a. Prepare a cost of goods manufactured statement for January.
| Disksan Manufacturing Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Month Ended January 31 | |||
| $ | |||
| Direct materials: | |||
| $ | |||
| $ | |||
| $ | |||
| Factory overhead: | |||
| $ | |||
| Total factory overhead | |||
| Total manufacturing costs incurred during January | |||
| Total manufacturing costs | $ | ||
| Cost of goods manufactured | $ | ||
b. Determine the cost of goods sold for
January.
$
In: Accounting
Sandia Corporation manufactures metal toolboxes. It adds all
materials at the beginning of the manufacturing process. The
company has provided the following information:
| Units | Costs | |||||
| Beginning work in process (27% complete) | 33,000 | |||||
| Direct materials | $ | 34,000 | ||||
| Conversion cost | 94,000 | |||||
| Total cost of beginning work in process | $ | 128,000 | ||||
| Number of units started | 68,000 | |||||
| Number of units completed and transferred to finished goods | ? | |||||
| Ending work in process (57% complete) | 84,000 | |||||
| Current period costs | ||||||
| Direct materials | $ | 87,000 | ||||
| Conversion cost | 161,000 | |||||
| Total current period costs | $ | 248,000 | ||||
Required:
1. Using the weighted-average method of process costing, complete each of the following steps:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the number of equivalent units.
c. Calculate the cost per equivalent unit.
d. Reconcile the total cost of work in process.
In: Accounting
Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 20 minutes Supervisor salaries $135,000 per month Depreciation $16,000 per month Direct labor rate $18 per hour Prepare a flexible budget for 9,000, 11,000, and 14,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Assuming that inventories are not significant. Enter all amounts as positive numbers. CABINAIRE INC-ASSEMBLY DEPARTMENT Flexible Production Budget For the Month Ending August 31 (assumed data) Units of production 9,000 11,000 14,000 Variable cost: Direct labor $ $ $ Total variable cost $ $ $ Fixed cost: Supervisor salaries $ $ $ Depreciation Total fixed cost $ $ $ Total department cost
In: Accounting
Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 8,000 computers:
| Actual: | Variable factory overhead | $188,200 |
| Fixed factory overhead | 61,750 | |
| Standard: | 8,000 hrs. at $29 | 232,000 |
If productive capacity of 100% was 13,000 hours and the total factory overhead cost budgeted at the level of 8,000 standard hours was $255,750, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.75 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variance | Amount | Favorable/Unfavorable |
| Variable factory overhead controllable variance | $ | |
| Fixed factory overhead volume variance | ||
| Total factory overhead cost variance | $ |
In: Accounting
Pronghorn Mining Company purchased land on February 1, 2020, at
a cost of $996,100. It estimated that a total of 51,900 tons of
mineral was available for mining. After it has removed all the
natural resources, the company will be required to restore the
property to its previous state because of strict environmental
protection laws. It estimates the fair value of this restoration
obligation at $93,600. It believes it will be able to sell the
property afterwards for $104,000. It incurred developmental costs
of $208,000 before it was able to do any mining. In 2020, resources
removed totaled 25,950 tons. The company sold 19,030 tons.
Compute the following information for 2020.
| (a) |
Per unit mineral cost |
$enter a dollar amount |
||
|---|---|---|---|---|
| (b) |
Total material cost of December 31, 2020, inventory |
$enter a dollar amount |
||
| (c) |
Total material cost in cost of goods sold at December 31, 2020 |
$enter a dollar amount |
In: Accounting
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $142,500 $125,400 Work in process 98,330 86,530 Finished goods 72,680 85,270 Direct labor $256,500 Materials purchased during January 273,600 Factory overhead incurred during January: Indirect labor 27,360 Machinery depreciation 16,530 Heat, light, and power 5,700 Supplies 4,560 Property taxes 3,990 Miscellaneous costs 7,410 a. Prepare a cost of goods manufactured statement for January. Sandusky Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended January 31 $ Direct materials: $ $ $ Factory overhead: $ Total factory overhead Total manufacturing costs incurred during January Total manufacturing costs $ Cost of goods manufactured $ b. Determine the cost of goods sold for January. $
In: Accounting
Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
| Number of Canoes Produced and Sold | ||||||
| 545 | 695 | 845 | ||||
| Total costs | ||||||
| Variable costs | $ | 77,935 | ? | ? | ||
| Fixed costs | 148,100 | ? | ? | |||
| Total costs | $ | 226,035 | ? | ? | ||
| Cost per unit | ||||||
| Variable cost per unit | ? | ? | ? | |||
| Fixed cost per unit | ? | ? | ? | |||
| Total cost per unit | ? | ? | ? | |||
Required:
1. Complete the table. (Round your cost per unit
answers to 2 decimal places.)
3. Suppose Riverside sells its canoes for $510
each. Calculate the contribution margin per canoe and the
contribution margin ratio. (Round your contribution margin
to the nearest whole dollar and your contribution margin ratio to
the nearest whole percent.)
4. Next year Riverside expects to sell 895 canoes.
Complete the contribution margin income statement for the
company.
In: Accounting
Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
| Number of Canoes Produced and Sold | ||||||
| 530 | 680 | 830 | ||||
| Total costs | ||||||
| Variable costs | $ | 71,550 | ? | ? | ||
| Fixed costs | 148,500 | ? | ? | |||
| Total costs | $ | 220,050 | ? | ? | ||
| Cost per unit | ||||||
| Variable cost per unit | ? | ? | ? | |||
| Fixed cost per unit | ? | ? | ? | |||
| Total cost per unit | ? | ? | ? | |||
Required:
1. Complete the table. (Round your cost per unit
answers to 2 decimal places.)
3. Suppose Riverside sells its canoes for $511
each. Calculate the contribution margin per canoe and the
contribution margin ratio. (Round your contribution margin
to the nearest whole dollar and your contribution margin ratio to
the nearest whole percent.)
4. Next year Riverside expects to sell 880 canoes.
Complete the contribution margin income statement for the
company.
In: Accounting
Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders. The plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, backorder cost is $20 per unit, inventory holding cost is $5 per unit, regular time cost of $20 per unit, and beginning inventory is zero.
Month Forecast
1 180
2 170
3 140
4 150
5 130
6 150
1.How should overtime capacity be utilized? (In what period, and how many units)
2.What are the total regular time costs?
3.What are the total backorder costs?
4.What is the total cost for this plan?
In: Operations Management