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 handling department's work in process
inventory at April 30 using the weighted average process costing method.

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        17,000        46%             77%
units completed during April    46,000
work in process, April 30       23,000        29%             14%

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      $121,279       $203,056         $324,335
costs added during April       363,285        227,619          590,904
total costs                    484,564        430,675          915,239

Calculate the total cost of the handling department's work in process
inventory at April 30 using the FIFO process costing method.

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 handling department's work in process
inventory at April 30 using the FIFO process costing method.

A company is going public at $20 and will use the ticker XYZ. The underwriters will charge a 7 percent spread. The company is issuing 16 million shares, and insiders will continue to hold an additional 32 million shares that will not be part of the IPO. The company will also pay $2.5 million of audit fees, $3.5 million of legal fees, and $900,000 of printing fees. The stock closes the first day at $23. What are the total costs of going public for XYZ as a percentage of the total pre-cost equity value? In calculating the pre-cost equity value, use the closing price of the stock at the end of the first day as the pre-cost equity value. Include underpricing in the calculation of the total costs of the offering. Do not round intermediate calculations. Round your answer to two decimal places.

Question text

FLEXIBLE BUDGET

Projections:
Units sold = 5000 units
Unit sales price = $20 per unit
Cost of goods sold = $5,000 per month and $10 per unit
Selling and administrative expense = $20,000 per month and $3 per unit

So for the month of March, create the flexible budget (select from each dropdown box):

Inc., manufactures and sells two products: Product G8 and Product O0. Historically, the firm has used a traditional costing system, with direct labor hours as an activity base, to allocated manufaturing overhead to products. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

The direct labor rate is $22.80 per DLH. The direct materials cost per unit for each product is given below:

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $185.50.

• The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $305.58.

• The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $185.50.

• The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $305.58.

Fmaedi156, Inc., manufactures and sells two products: Product G8 and Product O0. Historically, the firm has used a traditional costing system, with direct labor hours as an activity base, to allocated manufaturing overhead to products. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

The direct labor rate is $23.30 per DLH. The direct materials cost per unit for each product is given below:

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.)

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $163.12.

• The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $283.20.

• The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $163.12.

• The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $283.20.

Imperial Devices (ID) has offered to supply the state government with one model of its security screening device at "cost plus 20 percent." ID operates a manufacturing plant that can produce 22,000 devices per year, but it normally produces 20,000. The costs to produce 20,000 devices follow:

Based on these data, company management expects to receive $457.20 (= $381.00 × 120 percent) per monitor for those sold on this contract. After completing 2,000 monitors, the company sent a bill (invoice) to the government for $914,400 (= 2,000 monitors × $457.20 per monitor).

The president of the company received a call from a state auditor, who stated that the per monitor cost should be:

Therefore, the price per monitor should be $230.40 (= $192.00 × 120 percent). The state government ignored marketing costs because the contract bypassed the usual selling channels.

Required:

For each of the four situations, calculate the cost basis per device based on the information shown above. What price would you recommend? (Round intermediate calculations and final answers to 2 decimal places.)

Options:

A. Only the differential production costs could be considered as the cost basis.

B. The total cost per device for normal production of 20,000 devices could be used as the cost basis.

C. The total cost per device for production of 22,000 devices, excluding marketing costs, could be used as the cost basis.

D. The total cost per device for production of 22,000 devices, including marketing costs, could be used as the cost basis.

Imperial Devices (ID) has offered to supply the state government with one model of its security screening device at "cost plus 20 percent." ID operates a manufacturing plant that can produce 22,000 devices per year, but it normally produces 20,000. The costs to produce 20,000 devices follow:

Based on these data, company management expects to receive $436.80 (= $364.00 × 120 percent) per monitor for those sold on this contract. After completing 2,000 monitors, the company sent a bill (invoice) to the government for $873,600 (= 2,000 monitors × $436.80 per monitor).

The president of the company received a call from a state auditor, who stated that the per monitor cost should be:

Therefore, the price per monitor should be $237.60 (= $198.00 × 120 percent). The state government ignored marketing costs because the contract bypassed the usual selling channels.

Required:

For each of the four situations, calculate the cost basis per device based on the information shown above. What price would you recommend? (Round intermediate calculations and final answers to 2 decimal places.)

Options:

A. Only the differential production costs could be considered as the cost basis.

B. The total cost per device for normal production of 20,000 devices could be used as the cost basis.

C. The total cost per device for production of 22,000 devices, excluding marketing costs, could be used as the cost basis.

D. The total cost per device for production of 22,000 devices, including marketing costs, could be used as the cost basis?

Per Device Cost Basis Recommendend Price Per Device

Option A

Option B

OptionC

Option D