Required information
[The following information applies to the questions displayed below.]
Alden Co.’s monthly unit sales and total cost data for its
operating activities of the past year follow. Management wants to
use these data to predict future fixed and variable costs.
Month Units Sold Total Cost Month Units Sold Total Cost
1 316,000 $ 153,500 7 364,000 $ 307,376
2 161,000 97,250 8 266,000 147,750
3 261,000 201,600 9 76,800 69,000
4 201,000 96,000 10 146,000 126,625
5 286,000 197,500 11 90,000 90,000
6 186,000 108,000 12 96,000 85,650
2. Estimate both the variable costs per unit and the total
monthly fixed costs using the high-low method. (Do not round
intermediate calculations.)
please guy show step by step
In: Accounting
Suppose Jones Company has orders from three customers located in the same market area. One order has a total weight of 3,600 pounds, the second weighs 8,300 pounds, and the third weighs 12,100 pounds. The transportation carrier quotes a freight rate of $20 per hundredweight (or cwt.) for direct shipment to the customer for shipments weighing 1,000 to 4,999 pounds, $18 per cwt. for orders weighing 5,000 to 9,999 pounds, and $16 for shipments weighing between 10,000 and 15,000 pounds. Alternatively, the carrier’s rate for shipments weighing more than 20,000 pounds is $13.00 per cwt. However, if the orders are combined into one consolidated shipment, the carrier will charge $260 for each stop it is required to make. Calculate the total cost with or without consolidated shipment charge.
a) total cost using separate shipments
b) total cost using consolidated shipment
In: Operations Management
Acme Company Balance Sheet As of January 5, 2019 (amounts in thousands)
Cash 9,100 Accounts Payable 1,900
Accounts Receivable 4,400 Debt 2,400
Inventory 4,800 Other Liabilities 600
Property Plant & Equipment 15,600 Total Liabilities 4,900
Other Assets 2,600 Paid-In Capital 6,900
Retained Earnings 24,700
Total Equity 31,600
Total Assets 36,500 Total Liabilities & Equity 36,500
Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019
1. Sell product for $25,000 with historical cost of $20,000
2. Sell product for $30,000 with historical cost of $24,000
3. Sell product for $40,000 with historical cost of $32,000
What is the final amount in Retained Earnings?
Please specify your answer in the same units as the balance sheet.
In: Accounting
Classify the indicated costs as being fixed, semivariable, or variable in nature.
| Net sales | $8,741,685 | |
| Cost of goods sold: | ||
| Direct materials | 2,622,506 | Variable Cost |
| Direct labor | 2,098,004 | Variable Cost |
| Overhead expenses: | ||
| Depreciation on manufacturing equipment | 437,084 | Fixed Cost |
| Electric utility expense | 262,251 | Semivariable Cost |
| Total cost of goods sold | 5,419,845 | |
| Gross profit | 3,321,840 | |
| Operating expenses: | ||
| Sales commission expense | 174,834 | Variable Cost |
| Depreciation on buildings and property | 874,169 | Fixed Cost |
| Total operating expenses | 1,049,003 | |
| Earnings before interest and taxes (EBIT) | 2,272,837 | |
| Interest expense | 874,169 | Fixed Cost |
| Earnings before taxes (EBT) | 1,398,668 | |
| Taxes (40%) | 559,467 | Variable Cost |
| Net income | $839,201 | |
| Preferred stock dividends | 139,867 | Fixed Cost |
| Earnings available to common shareholders | $699,334 |
|
Income Statement for the Year Ending December 31 |
|
|---|---|
| Net sales | $8,741,685 |
| Less: Variable operating costs | ? |
| Fixed operating costs | ? |
| Total operating costs | ? |
| Earnings before interest and taxes (EBIT) | 2,272,837 |
| Less: Fixed capital costs | ? |
| Earnings before taxes (EBT) | 1,398,668 |
| Less: Income taxes (Variable, 40%) | ? |
| Earnings after taxes (EAT) | $839,201 |
| Less: Fixed capital costs (preferred stock dividends) | ? |
| Earnings available to common shareholders | ? |
| Earnings per share (EPS) — 100,000 shares | ? |
In: Finance
Candy producer Jim’s Jellybeans have customers all over the world. To be able to meet demand, the company has been forced to operate 15 separate warehouses across the globe. Lately, however, development in IT and warehouse automation has created new possibilities for Jim’s Jellybeans. The cost of the current operation is (for the whole company):
Transportation: $1 000 000
Stock keeping: $15 000 000
Cost for tied-up capital: $2 000 000
The company is faced with three alternatives:
Alternative 1: Automate picking. This means that each warehouse will be 30% more expensive (stock keeping cost) due to new equipment etc. But it also means that the order to delivery lead-time for each warehouse will decrease by as much as 60%. The reduced lead time lets the company reduce the number of warehouses to 10. As a result of this, transportation cost will double.
Alternative 2: Automate everything. Here, the number of warehouses are reduced to 5. The remaining warehouses are heavily automated and stock keeping cost is increased by 70% for these. Transportation cost increases by 500%.
Alternative 3: Do nothing. Keep the current system intact.
Na. What is the cost for tied-up capital for alternative 1?
Nb. What is the cost for tied-up capital for alternative 2?$
Nc. What is the total cost for alternative 1?$
Nd. What is the total cost for alternative 2? $
Ne. What is the total cost for alternative 3?$
In: Accounting
Grainy Goodness Company
Grainy Goodness Company manufactures granola cereal by a series of three processes, beginning materials such as oats, sweeteners, and nuts being introduced in the Mixing Department. From the Mixing Department, the materials pass through the Baking and Packaging departments, emerging as boxed granola cereal ready for shipment to retail outlets. Direct materials are added at the beginning of each process, and conversion costs are incurred evenly throughout production in each department.
During March, the President and sole stockholder, Jonathan Groat, reviewed the Cost of Production Report for the Mixing Department. He is concerned that the Mixing Department may not be operating efficiently, and asks for your help.
Cost of Production
Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production. Determine the missing information. If there is no amount or an amount is zero, enter "0". Round your per-unit computations to the nearest cent, if required.
Grainy Goodness Company
Cost of Production Report-Mixing Department
For the Month Ended March 31
Unit Information
Units charged to production:
Inventory in process, March 12,000
Received from materials storeroom38,000
Total units accounted for by the Mixing Department40,000
Units to be assigned costs:
Equivalent Units
Whole
UnitsDirect
Materials
Conversion
Inventory in process, March 1 (40% completed)2,000
Started and completed in March35,00035,00035,000
Transferred to Baking Department in March37,000
Inventory in process, March 31 (90% completed)3,000
Total units to be assigned costs40,000
Cost Information
Cost per equivalent unit:
Direct
Materials
Conversion
Total costs for March in Mixing Department$40,660$36,955
Total equivalent units÷÷
Cost per equivalent unit$$
Costs assigned to production:
Direct
Materials
Conversion
Total
Inventory in process, March 1$2,200$600$2,800
Costs incurred in March77,615
Total costs accounted for by the Mixing Department$80,415
Cost allocated to completed and partially completed units:
Inventory in process, March 1-balance$2,800
To complete inventory in process, March 11,1401,140
Cost of completed March 1 work in process$3,940
Started and completed in March37,45033,25070,700
Transferred to Baking Department in March$
Inventory in process, March 313,2102,565
Total costs assigned by the Mixing Department$
Feedback
Review the format and the steps to complete the Cost of Production Report.
February Cost Analysis
Determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production. Round your per-unit computations to the nearest cent, if required.
Cost Analysis for February - Mixing Department
AmountEquivalent UnitsCost per Unit
Direct Materials in inventory in process, March 1$$
Conversion costs in inventory in process, March 1
Total cost per unit$
Feedback
Look for the dollar amount and number of equivalent units on the Cost of Production Report that pertain to the inventory in process on March 1. Don’t forget that direct materials are added at the beginning of the process and so have all been added to inventory in process on March 1. The conversion costs are only partially complete.
March Cost Analysis
Determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production. Round your per-unit computations to the nearest cent, if required.
Cost Analysis for March- Mixing Department
AmountEquivalent UnitsCost per Unit
Costs for March: Direct Materials$$
Costs for March: Conversion
Total cost per unit$
Feedback
Look for the dollar amount and number of equivalent units on the Cost of Production Report that pertain to the costs and units added in March. Don’t forget that direct materials are added at the beginning of the process. The conversion costs are added evenly through the month.
Mixing Dept. Evaluation
After reviewing your work on the February Cost Analysis and March Cost Analysis, assist Jonathan Groat in evaluating the Mixing Department’s performance by answering the following questions:
In March, was the Mixing Department’s total cost per unit higher or lower than in February?
Higher
For which component was the cost per unit for March higher than in February?
Conversion costs
What is most probably your recommendation to Jonathan Groat given your computations?
Investigate a detailed breakdown of conversion costs to determine the source of the higher per-unit cost.
Feedback
What per-unit costs have increased in March when compared to February? How can you tell what is creating that change?
Journal
On March 31, using the data provided on the Cost of Production, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. If an amount box does not require an entry, leave it blank.
Mar. 31Work in Process-Baking
Work in Process-Mixing
In: Accounting
The following table depicts the price and cost structure of a profit-maximizing firm:
Quantity | Price per Unit | Total Cost |
0 | 25 | 10 |
1 | 25 | 15 |
2 | 25 | 30 |
3 | 25 | 55 |
4 | 25 | 90 |
5 | 25 | 135 |
a.) What is the firm’s fixed cost?
b.) What is the variable cost of producing two units of output?
c.) What is the marginal cost of the second unit produced?
d.) What is the firm’s total revenue from selling two units of output?
e.) What is the marginal revenue from the second unit sold?
f.) What is the firm’s profit-maximizing level of output?
In: Economics
Ferris Company began January with 7,000 units of its principal
product. The cost of each unit is $6. Merchandise transactions for
the month of January are as follows:
| Purchases | |||||||||
| Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
| Jan. 10 | 6,000 | $ | 7 | $ | 42,000 | ||||
| Jan. 18 | 7,000 | 8 | 56,000 | ||||||
| Totals | 13,000 | 98,000 | |||||||
* Includes purchase price and cost of freight.
| Sales | ||
| Date of Sale | Units | |
| Jan. 5 | 3,000 | |
| Jan. 12 | 3,000 | |
| Jan. 20 | 4,000 | |
| Total | 10,000 | |
10,000 units were on hand at the end of the month.
Required:
1. Calculate January's ending inventory and cost
of goods sold for the month using FIFO, periodic system.
In: Accounting
Ferris Company began January with 7,000 units of its principal
product. The cost of each unit is $6. Merchandise transactions for
the month of January are as follows:
| Purchases | |||||||||
| Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
| Jan. 10 | 6,000 | $ | 7 | $ | 42,000 | ||||
| Jan. 18 | 7,000 | 8 | 56,000 | ||||||
| Totals | 13,000 | 98,000 | |||||||
* Includes purchase price and cost of freight.
| Sales | ||
| Date of Sale | Units | |
| Jan. 5 | 3,000 | |
| Jan. 12 | 3,000 | |
| Jan. 20 | 4,000 | |
| Total | 10,000 | |
10,000 units were on hand at the end of the month.
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
In: Accounting
Ferris Company began January with 7,000 units of its principal
product. The cost of each unit is $6. Merchandise transactions for
the month of January are as follows:
| Purchases | |||||||||
| Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
| Jan. 10 | 6,000 | $ | 7 | $ | 42,000 | ||||
| Jan. 18 | 7,000 | 8 | 56,000 | ||||||
| Totals | 13,000 | 98,000 | |||||||
* Includes purchase price and cost of freight.
| Sales | ||
| Date of Sale | Units | |
| Jan. 5 | 3,000 | |
| Jan. 12 | 3,000 | |
| Jan. 20 | 4,000 | |
| Total | 10,000 | |
10,000 units were on hand at the end of the month.
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
In: Accounting