Questions
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

P15-3A Prepare entries for a job order cost system and cost of goods manufactured schedule Case...

P15-3A Prepare entries for a job order cost system and cost of goods manufactured schedule
Case Inc. is a construction company specializing in custom patios. The patios are constructed of
concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017,  
the general ledger for Case Inc. contains the following data.
Raw Materials Inventory $4,200 Manufacturing Overhead Applied $32,640
Work in Process Inventory $5,540 Manufacturing Overhead Incurred $31,650
Subsidiary data for Work in Process Inventory on June 1 are as follows.
Job Cost Sheets
Customer Job
Cost Element Rodgers Stevens Linton
Direct materials $600 $800 $900
Direct labor                 320                       540                      580
Manufacturing overhead                 400                       675                      725
$1,320 $2,015 $2,205
    During June, raw materials purchased on account were $4,900, and all wages were paid. Additional
overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 incurred
on account.
    A summary of materials requisition slips and time tickets for June show the following.
Customer Job Materials Requisition slips Time tickets
Rodgers $             800 $850
Koss              2,000 800
Stevens                 500 360
Linton              1,300 1,200
Rodgers                 300 390
             4,900 3,600
General use              1,500 1,200
$          6,400 $4,800
    Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for
customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $18,900.
Each customer paid in full.
Instructions
(a) Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred,
and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to
production; and (3) completion of jobs and sale of goods.
(b) Post the entries to Work in Process Inventory.
(c ) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
(d) Prepare a cost of goods manufactured schedule for June.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a)(1) Journalize the June transactions for purchase of raw materials, factory labor costs incurred,
and manufacturing overhead costs incurred
Account Value
Account Value
Account Value
Account Value
Account Value
Account Value
Account Value
(a)(2) Journalize the June transactions for assignment of direct materials, labor, and overhead to production
Account Value
Account Value
Account Value
Account Value
Account Value
Account Value
Account Value
Account Value
(a)(3) Journalize the June transactions for completion of jobs and sale of goods.
Account Value
Account Value
Account Value
Account Value
Account Value
Account Value
(b) Post the entries to Work in Process Inventory.
Work in Process Inventory
6/1 Balance Value June Completed work Value
Direct Materials Value
Direct labor Value
Overhead applied Value
6/30 Balance ?
(c ) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
6/30 balance in Work in Process Inventory Value
Unfinished Job (Koss)
     Direct materials Value
     Direct labor Value
     Manufacturing overhead Value
?
(d) Prepare a cost of goods manufactured schedule for June.
CASE INC.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
Work in process, June 1 Value
Direct materials used Value
Direct labor Value
Manufacturing overhead applied Value
     Total manufacturing costs ?
Total cost of work in process ?
Less: Work in process, June 30 Value
    Cost of goods manufactured ?
After you have completed, answer additional question.
1. Assume that indirect labor and raw materials purchases changed to $1,400 and $6,800 respectively.
Also assume that overhead is applied at the rate of $1.50 per dollar of direct labor. The three
completed jobs were sold for $22,000 cash. Revise the journal entries to reflect these changes.

In: Accounting