Questions
Unit Cost and Cost Assignment, Nonuniform Inputs Loran Inc. had the following equivalent units schedule and...

Unit Cost and Cost Assignment, Nonuniform Inputs

Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September:

Materials Conversion
Units completed 180,000 180,000
Add: Units in ending WIP x Fraction complete 72,000 41,040
  (72,000 x 57%)
Equivalent units of output 252,000 221,040
Costs:
  Work in process, September 1:
    Materials $147,000
    Conversion costs 7,875
      Total $154,875
   Current costs:
    Materials $1,080,000
    Conversion costs 451,860
      Total $1,531,860

Required:

1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. If required, round your answers to the nearest cent.

Unit materials cost $
Unit conversion cost $
Total unit cost $

2. Calculate the cost of units transferred out and the cost of EWIP. Round unit cost value to the nearest cent in intermediate calculations. If required, round final answers to the nearest dollar.

Cost transferred out $
Cost of ending work in process

In: Accounting

Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and packs coffee beans. The...

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:

ACCOUNT Work in Process-Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Dec. 1 Bal., 18,300 units, 75% completed 36,600
31 Direct materials, 316,600 units 357,758 394,358
31 Direct labor 196,096 590,454
31 Factory overhead 282,186 872,640
31 Goods transferred, 319,300 units ? ?
31 Bal., ? units, 25% completed ?

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.

Sunrise Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended December 31
Unit Information
Units to account for during production:
Inventory in process, December 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Whole Units Equivalent Units of Production
Transferred to Packing Department in December
Inventory in process, December 31
Total units to be assigned costs
Cost Information
Unit costs:
Costs
Total costs for December in Roasting Department $
Total equivalent units
Cost per equivalent unit $
Costs assigned to production:
Inventory in process, December 1 $
Costs incurred in December
Total costs accounted for by the Roasting Department $
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December $
Inventory in process, December 31
Total costs assigned by the Roasting Department $

In: Accounting

In April 2016 a pound of apples cost $1.51, while oranges cost $1.15. Three years earlier...

In April 2016 a pound of apples cost $1.51, while oranges cost $1.15. Three years earlier the price of apples was only $1.30 a pound and that of oranges was $1.01 a pound.

a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b. What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. What about the price of oranges? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

In: Finance

A. X-treme Vitamin Company is considering two investments, both of which cost $20,000. The firm’s cost...

A. X-treme Vitamin Company is considering two investments, both of which cost $20,000. The firm’s cost of capital is 15 percent. The cash flows are as follows:

Year Project A Project B
1 12000 10000
2 8000 6000
3 6000 16000


(a) What is the payback period for each project? Which project would you accept based on the payback period?
(b) What is the discounted payback for each project? Which project would you accept based on the discounted payback criterion?
(c) Calculate the NPV of each project? Which project would you choose based on the NPV criterion?
(d) Based on the IRR criteria which project would you choose if they were mutually exclusive? Show all the workings.

In: Finance

Assume that a radiologist group practice has the following cost structure: Fixed Costs $500,000 Variable cost...

Assume that a radiologist group practice has the following cost structure:

Fixed Costs

$500,000

Variable cost per procedure

25

Charge (revenue) per procedure

100

Furthermore, assume that the group expects to perform 7,500 procedures in the coming year.

a. Construct the group's base case projected P&L statement

Total revenues

$   750,000

Total variable costs

$   (187,500)

Total contribution margin

$   562,500

Fixed costs

$   (500,000)

Profit (net income)

$   625,000

b. What is the group's contribution margin? What is its breakeven point?

Revenue per procedure

$   100

Variable cost per procedure

$   25

Contribution margin per procedure

$   562,500

Fixed costs

Contribution margin per procedure

Accounting Breakeven

visits

c.1 What volume is required to provide a pretax profit of $100,000?

Fixed costs

Target profit

Contribution margin per procedure

Economic Breakeven

visits

c.2 What volume is required to provide a pretax profit of $200,000?

Fixed costs

Target profit

Contribution margin per procedure

Economic Breakeven

visits

d. We are skipping

e. now assume a 20 percent discount from charges. Redo questions a, b, and c under these conditions.

redo a. Construct the group's base case projected P&L statement

Total revenues

Total variable costs

Total contribution margin

Fixed costs

Profit (net income)

redo b. What is the group's contribution margin? What is its breakeven point?

Revenue per procedure

Variable cost per procedure

Contribution margin per procedure

Fixed costs

Contribution margin per procedure

Accounting Breakeven

visits

redo c.1 What volume is required to provide a pretax profit of $100,000?

Fixed costs

Target profit

Contribution margin per procedure

Economic Breakeven

visits

redo c.2 What volume is required to provide a pretax profit of $200,000?

Fixed costs

Target profit

Contribution margin per procedure

Economic Breakeven

visits

In: Accounting

Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and packs coffee beans. The...

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:

ACCOUNT Work in Process-Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Dec. 1 Bal., 13,700 units, 75% completed 59,869
31 Direct materials, 237,000 units 587,760 647,629
31 Direct labor 319,870 967,499
31 Factory overhead 460,301 1,427,800
31 Goods transferred, 239,100 units ? ?
31 Bal., ? units, 25% completed ?

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.

Sunrise Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended December 31
Unit Information
Units to account for during production:
Inventory in process, December 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Whole Units Equivalent Units of Production
Transferred to Packing Department in December
Inventory in process, December 31
Total units to be assigned costs
Cost Information
Unit costs:
Costs
Total costs for December in Roasting Department $
Total equivalent units
Cost per equivalent unit $
Costs charged to production:
Inventory in process, December 1 $
Costs incurred in December
Total costs accounted for by the Roasting Department $
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December $
Inventory in process, December 31
Total costs assigned by the Roasting Department $

In: Accounting

Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and...

Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?

a. $200 per change, $64 per setup, $5 per inspection

b. $180 per change, $76 per setup, $4 per inspection

c. $150 per change, $64 per setup, $4 per inspection

d. $180 per change, $76 per setup, $5 per inspection

e. $200 per change, $5 per setup, $64 per inspection

Short Answer

The following costs are attributed to the Quilt Company:

Purchase of raw materials (all direct)

$291,100

Direct labour cost

$141,800

Manufacturing overhead costs

$198,100

Inventories:


Beginning raw materials

$10,000

Ending raw materials

$900

Beginning work in process

$20,000

Ending work in process

$15,900

Beginning finished goods

$20,000

Ending finished goods

$6,800


Quilt Company used a 120% predetermined overhead rate based on direct labour cost.

Required:

7. Calculate the cost of goods manufactured.

8. What was the cost of goods sold before adjusting for any under or over applied overhead?

9. By how much was manufacturing overhead cost under or over applied?

10. Would the summary journal entry to close any under or over applied manufacturing overhead cost be a debit or credit to COGS?

In: Accounting

Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and packs coffee beans. The...

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:

ACCOUNT Work in Process-Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Dec. 1 Bal., 11,500 units, 75% completed 41,745
31 Direct materials, 199,000 units 409,940 451,685
31 Direct labor 222,938 674,623
31 Factory overhead 320,812 995,435
31 Goods transferred, 200,700 units ? ?
31 Bal., ? units, 25% completed ?

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.

Sunrise Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended December 31
Unit Information
Units to account for during production:
Inventory in process, December 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Whole Units Equivalent Units of Production
Transferred to Packing Department in December
Inventory in process, December 31
Total units to be assigned costs
Cost Information
Unit costs:
Costs
Total costs for December in Roasting Department $
Total equivalent units
Cost per equivalent unit $
Costs charged to production:
Inventory in process, December 1 $
Costs incurred in December
Total costs accounted for by the Roasting Department $
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December $
Inventory in process, December 31
Total costs assigned by the Roasting Department $

In: Accounting

Retail Inventory Method Beginning Inventory At cost $100,000 At retail $125,000 Net purchases At cost $300,000...

Retail Inventory Method

Beginning Inventory
At cost $100,000
At retail $125,000
Net purchases
At cost $300,000
At retail $360,000
Net markups $15,000
Net markdowns $10,000
Net sales at retail $280,000
Average cost per unit $8.00
Average selling price per unit $10.00

Using the gross profit inventory estimation method:

1. Compute gross profit on sales.

2. Compute cost of goods sold.

3. Compute the estimated cost of ending inventory.

Using the conventional (average LCM) inventory estimation method:

1. Compute the ending inventory at retail.

2. Compute cost-to-retail ratio.

3. Compute the estimated cost of ending inventory.

In: Accounting

Summarize and give short examples of the following questions Prime cost Conversación cost Direct labor Raw...

Summarize and give short examples of the following questions

Prime cost
Conversación cost
Direct labor
Raw materials
Manufacturing overhead non-manufacturing cost administrative cost
Product cost
Period cost cost behavior relevant range
Tradicional format of income statement
Gross margin
Contribution format of income statement

In: Accounting