Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was $3.90.

Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead variance is allocated among WIP Inventory, Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70%, respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the net variance closed to cost of goods sold.

Record the net variance allocated to ending inventories and Cost of goods sold.

a) Create a Tornado chart showing the effect on profit of each changing each individual input parameter value from its low value to its high value, when all other input parameter values are held at their base case. For this quick initial analysis assume the Low value for each parameter is 50% of its Base Case value and the High value is 150% of its Base Case value.  

B)Explain the implications of this chart.

C)From the tornado chart, identify which input variable has the strongest influence on profit.

Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4

[The following information applies to the questions displayed below.]

Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 23,200 units of product to finished goods inventory. Its 3,200 units of beginning work in process consisted of $20,000 of direct materials and $230,940 of conversion costs. It has 2,500 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $519,700 of direct material costs and $2,062,260 of conversion costs were charged to production.

Problem 20-4A Part 1

1. Prepare the company’s process cost summary for May using the weighted-average method.

2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

Problem 20-5AA FIFO: Process cost summary; equivalent units; cost estimates LO C3, C4, P4

[The following information applies to the questions displayed below.]

Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 32,700 units of product to finished goods inventory. Its 5,100 units of beginning work in process consisted of $198,960 of direct materials and $729,564 of conversion costs. It has 3,450 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $683,100 of direct material costs and $3,702,936 of conversion costs were charged to production.

Beginning work in process consisted of 5,100 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion.

Of the 32,700 units completed, 5,100 were from beginning work in process. The remaining 27,600 were units started and completed during May.

Assume that Tamar uses the FIFO method to account for its process costing system.

Problem 20-5A Part 1

1. Prepare the company’s process cost summary for May using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)
2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory.

Problem 20-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4

[The following information applies to the questions displayed below.]

Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 25,800 units to the blending department. Of the units completed, 4,800 were from beginning inventory and the remaining 21,000 were started and completed during the month. Beginning work in process was 100% complete with respect to direct materials and 40% complete with respect to conversion. The company has 4,200 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. Information on the roasting department’s costs of beginning work in process inventory and costs added during the month follows.

Problem 20-7A Part 1

Required:
1. Prepare the roasting department's process cost summary for October using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

2. Prepare the journal entry dated October 31 to transfer the cost of completed units to the blending department. (Do not round your intermediate calculations.)

9-Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton’s two divisions are available below. Note: All of Morton Company’s products are sold in competitive markets.

Missile Salt

Products Products

Sales                                                  $1,500,000                       $1,000,000

Direct labor                                           (300,000)                          (800,000)

Direct materials                                   (100,000)                             (40,000)

Manufacturing overhead*                (150,000)                          (400,000)

Gross profit                                          $950,000                         ($240,000)

*Manufacturing overhead is allocated to production based on the amount of direct labor cost.

        Morton has determined that its total manufacturing overhead cost of $550,000 is a mixture of batch-level costs and product line costs. Morton has assembled the following information concerning the manufacturing overhead costs, the annual number of production batches, and the number of product lines in each division.

Total

Manufacturing

Overhead                   Missile                         Salt

Costs               Products               Products

Batch-level overhead        $250,000            10 batches            90 batches

Product line overhead          300,000                     3 lines                     7 lines

                                               $550,000

        Which ONE of the following statements is MOST CORRECT?

9-Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton’s two divisions are available below. Note: All of Morton Company’s products are sold in competitive markets.

Missile Salt

Products Products

Sales                                                  $1,500,000                       $1,000,000

Direct labor                                           (300,000)                          (800,000)

Direct materials                                   (100,000)                             (40,000)

Manufacturing overhead*                (150,000)                          (400,000)

Gross profit                                          $950,000                         ($240,000)

*Manufacturing overhead is allocated to production based on the amount of direct labor cost.

        Morton has determined that its total manufacturing overhead cost of $550,000 is a mixture of batch-level costs and product line costs. Morton has assembled the following information concerning the manufacturing overhead costs, the annual number of production batches, and the number of product lines in each division.

Total

Manufacturing

Overhead                   Missile                         Salt

Costs               Products               Products

Batch-level overhead        $250,000            10 batches            90 batches

Product line overhead          300,000                     3 lines                     7 lines

                                               $550,000

        Which ONE of the following statements is MOST CORRECT?

Lower-of-Cost-or-Market (LCM) Method The Venner Company had the following inventory at year-end: Unit Price Quantity Cost Market Fans Model X1 300 $48 $49 Model X2 250 52 54 Model X3 400 59 56 Heaters Model B7 500 54 58 Model B8 290 65 62 Model B9 100 71 68 Required Determine the value of ending inventory after applying the lower-of-cost-or-market method to each item of inventory.

Short-run cost function tables presented in chapter five include information detailing average variable cost, average fixed cost, average total cost, and marginal cost. Which of the figures do you consider most important for an organization to evaluate when determining levels of production? Why do you believe that factor is the most important?

no less than 250 words in length, make at least one reference to your text or other course materials and provide in-text citations. As you reference information from a source, be sure to provide APA citations in text and at the end of your post.