Betty DeRose, Inc. operates two departments, the handling
department and the packaging department. During April,
the handling department reported the following information:
% complete % complete
units DM conversion
work in process, April 1 27,000 60% 25%
units completed during April 46,000
work in process, April 30 32,000 70% 45%
The cost of beginning work in process and the costs added
during April were as follows:
DM Conversion Total cost
work in process, April 1 $ 20,340 $168,690 $189,030
costs incurred during April 307,980 332,630 640,610
total costs 328,320 501,320 829,640
Calculate the total cost of the 27,000 units in beginning
work in process using the FIFO process costing method.In: Accounting
Auctio sells sprockets in a perfectly competitive market. Below
are its short-run total variable costs at different output levels.
The firm's fixed cost is $5. The market price of one sprocket is
$8.
| Units | Total Variable Cost |
|---|---|
| 0 | $0 |
| 1 | $12 |
| 2 | $18 |
| 3 | $22 |
| 4 | $28 |
| 5 | $35 |
| 6 | $43 |
In: Economics
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
| Total machine-hours | 30,700 | |
| Total fixed manufacturing overhead cost | $ | 337,700 |
| Variable manufacturing overhead per machine-hour | $ | 4 |
Recently, Job T687 was completed with the following characteristics:
| Number of units in the job | 10 | |
| Total machine-hours | 20 | |
| Direct materials | $ | 575 |
| Direct labor cost | $ | 1,150 |
The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
Garrison 16e Rechecks 2017-06-28
Multiple Choice
$202.50
$172.50
$101.25
In: Accounting
Acme Company sold 500 units for $450 each. Variable costs were $275 per unit, and total fixed expenses were $53,000. Prepare a contribution margin income statement.
.
Scottso Enterprises has presented the following information for the past eight months operations:
|
Month |
Units |
Total Cost |
|
Aprl |
4,000 |
$ 17,000 |
|
May |
3,200 |
$ 14,900 |
|
June |
1,400 |
$ 11,100 |
|
July |
2,800 |
$ 13,200 |
|
August |
3,500 |
$ 16,000 |
|
September |
4,200 |
$ 17,400 |
|
October |
3,900 |
$ 16,500 |
|
November |
3,400 |
$ 15,700 |
a. Using the high-low method, calculate the fixed cost per month
AND variable cost per unit (4 pts)
b. What would total costs be for a month with 3,000 units produced?
(2 pts)
In: Accounting
Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:
% complete % complete
units DM conversion
work in process, April 1 18,000 38% 71%
units started during April 80,000
work in process, April 30 44,000 82% 47%
The cost of beginning work in process and the costs added during April
were as follows:
DM Conversion Total cost
work in process, April 1 $ 51,764 $152,477 $204,241
costs added during April 191,452 232,125 423,577
total costs 243,216 384,602 627,818
Calculate the total cost of the 18,000 units in beginning work in process
using the FIFO process costing method.In: Accounting
Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:
% complete % complete
units DM conversion
work in process, April 1 18,000 38% 71%
units started during April 80,000
work in process, April 30 44,000 82% 47%
The cost of beginning work in process and the costs added during April
were as follows:
DM Conversion Total cost
work in process, April 1 $ 51,764 $152,477 $204,241
costs added during April 191,452 232,125 423,577
total costs 243,216 384,602 627,818
Calculate the total cost of the 18,000 units in beginning work in process
using the FIFO process costing method.In: Statistics and Probability
Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:
% complete % complete
units DM conversion
work in process, April 1 16,400 75% 66%
units started during April 56,000
work in process, April 30 47,600 82% 40%
The cost of beginning work in process and the costs added during April
were as follows:
DM Conversion Total cost
work in process, April 1 $ 25,766 $ 90,794 $116,560
costs added during April 193,245 181,588 374,833
total costs 219,011 272,382 491,393
Calculate the total cost of the 16,400 units in beginning work in process
using the FIFO process costing method.
In: Accounting
Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:
% complete % complete
units DM conversion
work in process, April 1 16,400 75% 66%
units started during April 56,000
work in process, April 30 47,600 82% 40%
The cost of beginning work in process and the costs added during April
were as follows:
DM Conversion Total cost
work in process, April 1 $ 25,766 $ 90,794 $116,560
costs added during April 193,245 181,588 374,833
total costs 219,011 272,382 491,393
Calculate the total cost of the 16,400 units in beginning work in process
using the FIFO process costing method.
In: Accounting
Assume that a radiologist group practice has the following cost structure:
|
Fixed costs |
$200,000 |
|
Variable cost per procedure |
$200 |
|
Charge (price) per procedure |
$400 |
a. What is the group’s breakeven point in volume?
b. Complete the following table. (Hint: total costs= fixed costs + (variable cost per procedure x procedures)
|
Volume (Procedures) |
Fixed Costs |
Total Costs |
Total Revenue |
|
0 |
|||
|
100 |
|||
|
200 |
|||
|
300 |
|||
|
400 |
|||
|
500 |
|||
|
600 |
|||
|
700 |
|||
|
800 |
|||
|
900 |
|||
|
1,000 |
|||
|
1,100 |
|||
|
1,200 |
|||
|
1,300 |
|||
|
1,400 |
|||
|
1,500 |
c. Sketch out a breakeven graph depicting the BE point. (Hint: use Excel to produce the graph. When done, copy/paste the graph on the space provided below).
In: Finance
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:
| Estimated Fixed Cost |
Estimated Variable Cost (per unit sold) |
||||||
| Production costs: | |||||||
| Direct materials | — | $17 | |||||
| Direct labor | — | 12 | |||||
| Factory overhead | $840,500 | 9 | |||||
| Selling expenses: | |||||||
| Sales salaries and commissions | 174,700 | 4 | |||||
| Advertising | 59,100 | — | |||||
| Travel | 13,100 | — | |||||
| Miscellaneous selling expense | 14,400 | 3 | |||||
| Administrative expenses: | |||||||
| Office and officers' salaries | 170,700 | — | |||||
| Supplies | 21,000 | 1 | |||||
| Miscellaneous administrative expense | 19,780 | 2 | |||||
| Total | $1,313,280 | $48 | |||||
It is expected that 10,640 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 13,000 units.
Required:
1. Prepare an estimated income statement for 20Y7.
| Belmain Co. | |||
| Estimated Income Statement | |||
| For the Year Ended December 31, 20Y7 | |||
| $ | |||
| Cost of goods sold: | |||
| $ | |||
| Total cost of goods sold | |||
| Gross profit | $ | ||
| Expenses: | |||
| Selling expenses: | |||
| $ | |||
| Total selling expenses | $ | ||
| Administrative expenses: | |||
| $ | |||
| Total administrative expenses | |||
| Total expenses | |||
| Operating income | $ | ||
2. What is the expected contribution margin
ratio? Round to the nearest whole percent.
%
3. Determine the break-even sales in units and dollars.
| Units | units |
| Dollars | $ |
4. Construct a cost-volume-profit chart on your
own paper. What is the break-even sales?
$
5. What is the expected margin of safety in dollars and as a percentage of sales?
| Dollars: | $ | |
| Percentage: (Round to the nearest whole percent.) | % |
6. Determine the operating leverage. Round to one decimal place.
In: Accounting