total cost of 1940s hotel $200k-800k furnishing near 1880s park and theater questions

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Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted...

Job Costs Using a Plantwide Overhead Rate

Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $250,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:

	Job 39	Job 40	Job 41	Job 42
Beginning balance	$22,700	$35,900	$17,500	$1,700
Materials requisitioned	20,200	21,400	11,800	12,100
Direct labor cost	11,300	18,500	6,450	3,000

Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 125 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.

Required:

1. Calculate the balance in Work in Process as of June 30.

$

2. Calculate the balance in Finished Goods as of June 30.

$

3. Calculate the cost of goods sold for June.

$

4. Calculate the price charged for Job 39. Round your answer to the nearest cent.

$

5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods?

- Select your answer -Finished Goods would increaseFinished Goods would decreaseFinished Goods would not changeItem 5

What would happen to the balance of Cost of Goods Sold?

- Select your answer -Cost of Goods Sold would increaseCost of Goods Sold would decreaseCost of Goods Sold would not changeItem 6

In: Accounting

Data Manufactured in-house Fixed cost $50,000 Unit variable cost $125 Payoff Table Demand Purchased from supplier...

Data

Manufactured in-house
Fixed cost	$50,000
Unit variable cost	$125	Payoff Table
			Demand
Purchased from supplier			800	1,000	1,200	1,400
Unit cost	$175	Manufacture	$150,000	$175,000	$200,000	$225,000
		Outsource	$140,000	$175,000	$210,000	$245,000
Production volume	1500

Model		ANSWER	Manufacture/Outsource	Value
		Average Payoff
**Total manufacturing cost**	$237,500	Aggressive
**Total purchased cost**	$262,500	Conservative

Cost difference (Manufacture - Purchase)	-$25,000
Best Decision	Manufacture

Problem 16A Payoff Tables

Based on the cost model and payoff table provided, determine the average payoff strategy, aggressive, and conservative recommendation. Remember that this payoff table is based on cost so you will want to recommend decisions under each strategy which minimize cost.

Enter your answer in the table by stating whether manufacturing or outsources would be the best choice for each strategy and the value associated with that option.

In: Accounting

In October, Manchaca Company, who uses the FIFO method for process costing, had the following production...

In October, Manchaca Company, who uses the FIFO method for process costing, had the following production and cost data:

Beginning inventory units*	42,600
October completed production	1,570,000
Units in ending inventory**	28,400
Beginning inventory cost	$458,482
October direct material cost per EUP	$10.74
October direct labor cost per EUP	$13.88
October overhead cost per EUP	$24.80

* 80% complete as to DM; 45% complete as to DL; 30% complete as to OH
** 35% complete as to DM; 15% complete as to DL; 25% complete as to OH
Note: When answering the following questions, round your answers to two decimal places (i.e. round $4.355 to $4.36).

a. What is the cost of the beginning inventory transferred out in October?

b. What is the total cost transferred out in October?
c. What is the cost of ending inventory at the end of October?
d. What is the total cost to account for during October?

In: Accounting

7. The short-run supply curve for a firm in a perfectly competitive market (x) is determined,...

7. The short-run supply curve for a firm in a perfectly competitive market
(x) is determined, in part, by the comparison of marginal costs and marginal revenue for the firm.
(y) is reflected in that part of the marginal cost curve that lies above the average variable cost curve.
(z) will be influenced by fixed costs.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

8. At the current level of output, a profit-maximizing firm in a competitive market earns average revenue of $48, and has an average total cost of $43. If the firm's marginal cost curve is equal to its average total cost curve at an output level of 40,000 units, then the firm would earn a profit of _________ at its current level of output.
A. exactly $200,000
B. less than $200,000
C. more than $200,000
D. Any of the above
E. None of the above

9. A competitive firm (price-taker) is able to sell its output for $10 per unit. The 1,000th unit of output that the firm produces has a marginal cost of $12. It follows that the production and sale of the 1,000th unit of output
(x) increases the firm’s total revenue by $10, but increases the firm’s total cost by $12.
(y) decreases the firm’s profit by $2 since price is less than marginal cost by $2.
(z) indicates that the firm should necessarily shut down in the short run since marginal cost exceeds marginal revenue at the output amount of 1,000 units.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

In: Economics

The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars...

The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 25 cars per month. The cars cost $70 each, and ordering costs are approximately $10 per order, regardless of the order size. The annual holding cost rate is 23%. ROUND ANSWERS TO TWO DECIMAL PLACES

Determine the economic order quantity and total annual cost under the assumption that no backorders are permitted. If required, round your answers to two decimal places.

Q^* =

Total Cost = $
Using a $47 per-unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost for the model racing cars. If required, round your answers to two decimal places.

S^* =

Total Cost = $
What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year. If required, round your answer to two decimal places.

Length of backorder period = days
Would you recommend a no-backorder or a backorder inventory policy for this product? Explain. If required, round your answers to two decimal places.

Recommendation would be - Select your answer -backorderno-backorderItem 6 inventory policy, since the maximum wait is only days and the cost savings is $ .
If the lead time is six days, what is the reorder point for both the no-backorder and backorder inventory policies? If required, round your answers to two decimal places.

Reorder point for no-backorder inventory policy is .

Reorder point for backorder inventory policy is .

In: Statistics and Probability

(a) Develop proforma Income Statement Using Excel Spreadsheet (b) Compute Net Project Cashflows, NPV, and IRR...

(a) Develop proforma Income Statement Using Excel Spreadsheet
(b) Compute Net Project Cashflows, NPV, and IRR



1) Life Period of the Equipment = 4 years		8) Sales for first year (1)			$200,000
2) New equipment cost	$(200,000)	9) Sales increase per year			5%
3) Equipment ship & install cost	$(35,000)	10) Operating cost (60% of Sales)			$(120,000)
4) Related start up cost	$(5,000)	(as a percent of sales in Year 1)			-60%
5) Inventory increase	$25,000	11) Depreciation			Use 3-yr MACRIS
6) Accounts Payable increase	$5,000	12) Marginal Corporate Tax Rate (T)			21%
7) Equip. salvage value before tax	$15,000	13) Cost of Capital (Discount Rate)			10%



ESTIMATING Initial Outlay (Cash Flow, CFo, T= 0)

	CF0	CF1	CF2	CF3	CF4
Year	0	1	2	3	4
Investments:
1) Equipment cost
2) Shipping and Install cost
3) Start up expenses
Total Basis Cost (1+2+3)
4) Net Working Capital
Total Initial Outlay

Operations:
Revenue
Operating Cost
Depreciation
EBIT
Taxes
Net Income

Add back Depreciation

Total Operating Cash Flow		XXXXX	XXXXX	XXXXX	XXXXX

Terminal:
1) Change in net WC		$-	$-	$-	$20,000
2) Salvage value (after tax)	Salvage Value Before Tax (1-T)				XXXXX
Total					XXXXX

Project Net Cash Flows	$-	$-	$-	$-	$

NPV =	IRR =			Payback=

Profitability Index =				Discounted Payback =

In: Finance

Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan...

Absorption and Variable Costing Income Statements

During the first month of operations ended July 31, YoSan Inc. manufactured 10,600 flat panel televisions, of which 9,800 were sold. Operating data for the month are summarized as follows:

Sales		$1,715,000
Manufacturing costs:
Direct materials	$869,200
Direct labor	265,000
Variable manufacturing cost	222,600
Fixed manufacturing cost	116,600	1,473,400
Selling and administrative expenses:
Variable	$137,200
Fixed	63,100	200,300

Required:

1. Prepare an income statement based on the absorption costing concept.

YoSan Inc.
Absorption Costing Income Statement
For the Month Ended July 31
Sales		$
Cost of goods sold:
Cost of goods manufactured	$
Inventory, July 31
Total cost of goods sold
Gross profit		$
Selling and administrative expenses
Income from operations		$

1. Sales - (cost of goods manufactured - ending inventory*) = Gross profit; gross profit - selling and administrative expenses = income from operations
*(Manufactured Units - Sold units) x (total manufacturing costs/manufactured units)

Learning Objective 1 and Learning Objective 2.

2. Prepare an income statement based on the variable costing concept.

YoSan Inc.
Variable Costing Income Statement
For the Month Ended July 31
Sales		$
Variable cost of goods sold:
*Variable cost* of goods manufactured**	$
Inventory, July 31
Total variable cost of goods sold
Manufacturing margin		$
Variable selling and administrative expenses
Contribution margin		$
Fixed costs:
Fixed manufacturing costs	$
Fixed selling and administrative expenses
Total fixed costs
Income from operations		$

In: Accounting

Name: &nbs

Name: .

A manager of a local clothing retail store wants to make a sales and promotion plan for next month. In order to evaluate the effectiveness of the plan, the manager identifies all the costs and other relevant information and conducts Break-even analysis. Here are the identified costs and other related information.

Monthly rent fees: $2,500

Wages for the hired employees (Monthly): $6,000

Utility fees (Monthly): $700

Other operation costs (Monthly): $1,000

Purchase price per unit: $78 (The manager purchases clothing from other retailers)

Shipping and handling cost per unit: $12

(Assume there is no other cost)

What is the total Fixed cost per month?

Answer 9000 :

What is the Variable cost per unit?

Answer 90 :

The manager wants to have 20% profit margin on selling price. What is the selling price per unit at the retail store?

Answer : 240 :

How many product units must be sold a month to break even?

Answer 68 :

What is the revenue at the break-even point?

Answer 409.09 :

The manager wants to have total profit of $5,000 a month. How many product units must be sold to achieve this goal?

Answer :

Now the manager considers two marketing promotion options.

Option 1: Advertising on a local cable channel next month. The advertising cost is $2,000.

How many product units must be sold to cover the Total Cost (including the advertising cost)?

Answer :

Option 2: Sales promotion next month (10% price discount on selling price).

.How many product units must be sold to cover the Total Cost (including sales promotion cost)?

Answer

In: Accounting

Alternative Inventory Methods Frate Company was formed on December 1, 2015, and uses the periodic inventory...

Alternative Inventory Methods

Frate Company was formed on December 1, 2015, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:

	Units	Unit Cost

January 1, 2016 (beginning inventory)	1,500	$9.00
Purchases:
January 6, 2016	2,200	10.00
January 25, 2016	1,900	10.50
February 17, 2016	1,300	11.00
March 27, 2016	1,600	11.50

A physical inventory on March 31, 2016 shows 3,000 units on hand.

Required:

For each method, enter your answers in chronological order.

Prepare schedules to compute the ending inventory at March 31, 2016, under each of the following inventory methods:
(For the weighted average method, round the average cost per unit to two decimal places.)
1. FIFO

FRATE COMPANY
Computation of Inventory for Product Ply Under FIFO Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
		$	$


March 31, 2016 inventory			$

2. LIFO

FRATE COMPANY
Computation of Inventory for Product Ply Under LIFO Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
		$	$

March 31, 2016 inventory			$

3. Weighted average

FRATE COMPANY
Computation of Inventory for Product Ply Under Weighted Average Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
Beginning inventory		$	$
January 6, 2016
January 25, 2016
February 17, 2016
March 27, 2016
Total			$
Weighted average cost		$
March 31, 2016 inventory		$	$

In: Accounting

1. An important application of regression analysis in accounting is in the estimation of cost. By...

1. An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.

Production Volume (units)	Total Cost ($)
400	5,000
450	6,000
550	6,400
600	6,900
700	7,400
750	8,000

Compute b₁ and b₀ (to 1 decimal).
b₁
b₀

Complete the estimated regression equation (to 1 decimal).
= + x
What is the variable cost per unit produced (to 1 decimal)?
$
Compute the coefficient of determination (to 3 decimals). Note: report r² between 0 and 1.
r² =

What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?
%
The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?
$

2.

Consider the following data for a dependent variable y and two independent variables, x₁and x₂; for these data SST = 15,029.6, and SSR = 13,917.

x ₁	x ₂	y
30	12	95
46	10	109
24	18	112
50	17	179
40	5	95
52	19	175
74	7	171
37	13	118
59	14	143
77	16	211

Round your answers to three decimal places.

a. Compute R².

b. Compute R_a².

In: Statistics and Probability