Date Items Cost Total Cost

March 1 10 $120 $1,200

March 4 13 $115 $1,495

March 16 20 $105 $2,100

March 28 18 $100 $1,800

Total 61 $6,595

During the month, 20 of the items were sold. Identify which cost flow assumption would achieve the indicated result.

Group of answer choices

Higher net income

FIFO            Weighted-Average            LIFO      

Lower net income

FIFO            Weighted-Average            LIFO      

Higher Inventory on the Balance Sheet

FIFO            Weighted-Average            LIFO      

Lower Inventory on the Balance Sheet

FIFO            Weighted-Average            LIFO      

Hermione Co. reported the information shown in Table 5-1.

Table 5-1

10.       Refer to Table 5-1. Assume that Hermione uses perpetual LIFO. The cost of the ending inventory is:

A.        $1,700.

B.         $1,670.

C.         $1,655.

D.        $1,600.

11.       Refer to Table 5-1. Assume that Hermione uses perpetual weighted average costing. The average cost of a unit sold on June 22 is:

A.        $400.

B.         $402.50.

C.         $404.

D.        $405.

12.       Refer to Table 5-1. Assume that Hermione uses perpetual FIFO. The entry to record the March 1 credit sale at a sale price of $800 per unit would include all of the following EXCEPT a:

A.        credit to Inventory, $2,400.

B.         debit to Cost of Goods Sold, $1,200.

C.         debit to Accounts Receivable, $2,400.

D.        credit to Sales Revenue, $2,400.

13.       Refer to Table 5-1. Assume that Hermione uses periodic FIFO. The cost of goods sold for the period is:

A.        $2,470.

B.         $2.410.

C.         $1,660.

D.        $1,600.

1. 1b. At a price of $14, what is the profit-maximizing number the firm should produce each day? (note: Do not necessarily just look at economic profit. Look at marginal revenue and marginal cost. Pick the one where MR=MC).

2. 1f. What is the ATC associated with the profit-maximizing number you chose in 1b (and 1d)? (round to the nearest penny)

3. 2b. At a price of $10, What is the profit-maximizing number the firm should produce each day? (Again, do not necessarily just look at economic profit. Look at marginal revenue and marginal cost.)

4. 2c. What is the ATC associated with the profit-maximizing number you chose in 2b? (round to the nearest penny)

5. 2f. What are the total variable costs associated with the profit-maximizing number you chose in 2b? (round to the nearest penny)

Part one: Calculate cost per unit. (Round answer to 2 decimal places) Weighted-average cost per unit

Part two: Calculate ending inventory, cost of goods sole, and gross profit under each of the following methods: LIFO, FIFO, and Average Cost.

Part three: Calculate gross profit rate under each of the following methods: LIFO, FIFO, and Average-cost (Round answers to 1 decimal place)

You are provided with the following information for Cheyenne Inc. for the month ended June 30, 2019. Cheyenne uses the periodic method for inventory.

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.)