Variable Cost Methodof Product Pricing

Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows:

Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000.

a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones.

b. Determine the variable cost markuppercentage for cellular phones. Round to two decimal places.
%

c. Determine the selling price of cellular phones. If required, round to the nearest dollar.
$per cellular phone

Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 7,500 units of cell phones are as follows:

Smart Stream desires a profit equal to a 14% return on invested assets of $952,710.

a. Determine the total cost and the total cost amount per unit for the production and sale of 7,500 units of cellular phones. Round the cost per unit to two decimal places.

b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.
%

c. Determine the selling price of cellular phones. Round to the nearest cent.
$ per cellular phone

Assembly Department uses a process cost accounting systm and a weighted-average cost flow assumption. The department adds minerals at the beginning of the process and incur conversion costs uniformly throughout the process. During July, $190,000 of materials cost and $135,000 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs.

Other Data for the month of July are as follows:
Beginning work in process Inventory 7/1    25,000 units (40% complete)
Units completed and transferred out. 90,000 units
Ending work in process inventory 7/31       30,000 units (30% complete)

Instructions
1. How many physical units have to be accounted for in July?
2. What are the equivalent units of production for materials and for conversion costs for the month of July?
3. What is the total cost assigned to the 90,000 units that were transferred out of the process in July?
4. What is the remaining total cost of inventory within the Assembly department as of July 31?

FQ3. Annual demand is 12500 units, cost per order is $60 and carrying cost per unit as a    percentage is 8%. The company works 50 weeks a year; the lead-time on all orders placed is 5 weeks.

1. Assuming constant lead-time demand, and a unit cost of $40 what is the economic order quantity? What is the reorder point.
2. If lead-time demand shows variability that follows a normal distribution with a mean μ =280 and a standard deviation σ =20, what will the revised reorder point if two stock-outs (shortages) are allowed?
3. What is the company’s reorder point if the probability of a stock-out on any cycle is restricted to 0.05?

1. List 5 ways that managerial accountants use cost information from cost systems in making decisions:

Cost Control 2: The Apex Corporation wants to improve its cost control program. Build a regression model to predict the total manufacturing cost per month (COST, measured in thousands of dollars) from the total production of paper per month in tons (PAPER), total machine hours used per month (MACHINE), total variable overhead costs per month in thousands of dollars (OVERHEAD), and the total direct labor hours used each month (LABOR). The data are contained in the worksheet named COST,HW8.  

(a) What is the sample-based model coefficient for machine hours? Hint: Be mindful of the measurement units. (Enter your answers to two decimal places.)

$ ___

(b) State the appropriate test statistic name, degrees of freedom, test statistic value, and the associated p-value (Enter your degrees of freedom as a whole number, the test statistic value to three decimal places, and the p-value to four decimal places).

t (15) = ___ , p = ___

(c) Construct a 95% confidence interval estimate of the true marginal cost associated with total machine hours. (Round your answers to three decimal places.)

( $ ___ , $ ___ )

Draw a long run average cost curve, as well as several short run average cost curves if the firm has increasing economies of scale followed by decreasing economies of scale.

FAIR VALUE AND HISTORICAL COST ACCOUNTING

- Discuss three challenges of historical cost measurement

CONTROLLERSHIP

-Discuss three major challenges facing controllers today

-Discuss three ways in which controllership have changed in the past 100 years

SOCIAL ROLE OF ACCOUNTANCY

-Discuss three major social roles of accountancy

ROLE OF GOVERNMENT IN STANDARD SETTING

-Why do governments intervene in setting accounting standards instead of leaving it to the private sector?

Historical Cost Historical cost has been the most commonly used measurement attribute for assets. Find the places in the FASB ASC that cite historical cost. Looking for FASB ASC section number.