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:

A physical inventory on March 31, 2016 shows 5,800 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

2. LIFO

3. Weighted average

Corporation has an activity-based costing system with three activity cost pools—Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Distribution of Resource Consumption Across Activity Cost Pools:

In the second stage, Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins.

A. How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing first stage of allocation?

B. The activity rate for the Supervising activity cost pool (per batch) under activity-based costing is?

C. What is the overhead cost assigned to Product H3 under activity-based costing?

D. What is the product margin for Product H3 under activity-based costing?

Suppose you have been given responsibility for developing the six-month aggregate production plan at Soda Galore, a manufacturer of soft drinks. Your company makes three types of soft drinks: regular, diet, and super-caffeinated. Fortunately, all three types are made using the same production process, and the costs related to switching between the three types are so minimal that they can be ignored. Thus, you can treat your problem as an aggregate planning exercise where the planning unit is cases of soft drinks, regardless of what types of drinks they are.

A)Total cost is workforce size adjusted

Total cost if overtime production used

Total cost if subtracting used

B)After much internal discussion, the company decides to maintain a permanent workforce of 10 production workers. Given the same planning information and this new requirement, develop a six-month production plan based on hybrid production. Determine the cost of the hybrid production plan. Use the overtime cost.

QUESTION 1 - Please show work for understanding of problem.

New Image Sports uses a WEIGHTED AVERAGE process-costing system. For March, the company had the following activities:

Beginning work-in-process inventory    6,000 units

Units placed in production      24,000 units

Units completed  and Transferred Out   25,000 units

Cost of beginning work in process -Materials    $ 3,000

Cost of beginning work in process- Conversion Costs    $ 2,000        

Direct material costs added in March                                        $18,000

Conversion costs added in March                                             $13,750

Direct materials are placed into production at the beginning of the process. Ending Work in Process is 60% completed as to conversion costs.

1. The Total Equivalent Units would be __________ for Direct Materials and ________ for Conversion Costs.

2. The Cost per Equivalent Unit would be ________ for Direct Materials and _________ for Conversion Costs.  Round Conversion Costs to 4 decimals.

3. The Total Cost of the 25,000 units completed and transferred out is ___________ .

4. The Total Cost of Ending Work In Process is _________ of which ________ is Direct Materials and ________ is Conversion Costs.

A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $500. If the firm produced 1,000 units per day, its total cost would be $350, and if it produced 700 units per day, its total cost would be $325.

a. What are the firm's ATC at these three levels of production?   

b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium?

c. From what you know about these firms’ cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium? $0.38

d. If that price ends up being the market price and if the normal rate of profit is 10 percent, then how big will each firm’s accounting profit per unit be?

Bullseye has the following actual results for the month of September:

Required:
1. Calculate the direct materials price, quantity, and total spending variances for Bullseye.
2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.
3. Calculate the variable overhead rate, efficiency, and total spending variances for Bullseye.

Franklin Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows:

Expected activity for each product follows:

Required

1. Compute the overhead rate for each activity pool.

2. Determine the overhead cost allocated to each product.

The job cost sheet for 1,000 units of toy trucks is:
  

All of the materials for the job were purchased on 4/10. The batch of 1,000 toy trucks is sold on 7/10.

What are the costs of this job order in the raw materials account, the work-in-process account, the finished goods account, and the cost of goods account on 4/30, 5/31, 6/30 and 7/31?  

Support Department Cost Allocation—Reciprocal Services Method

Blue Africa Inc. produces laptops and desktop computers. The company’s production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company’s production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $264,000. The total cost of the Cafeteria Department is $173,000. The number of employees and the square footage in each department are as follows:

Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments.

Please do show the steps on how to get each answer. Thank you!