Lamps R Us makes lamps. The variable materials cost $8.85 per unit. The variable labor cost is $8.10 per unit. (10 points)
In: Accounting
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 7,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below.
| Type A | Type B | Type C | Total | |||||||||||||||
| 5,000 | units | $ | 16 | $ | 45 | $ | 16 | $ | 77 | |||||||||
| 6,500 | units | 16 | 30 | 15 | 61 | |||||||||||||
If Shum produces 7,000 units, the total cost would be:
In: Accounting
Fanelli Corporation, a merchandising company, reported the following results for July:
| Number of units sold | 5,200 | |
| Selling price per unit | $ | 600 |
| Unit cost of goods sold | $ | 404 |
| Variable selling expense per unit | $ | 54 |
| Total fixed selling expense | $ | 124,700 |
| Variable administrative expense per unit | $ | 24 |
| Total fixed administrative expense | $ | 206,600 |
Cost of goods sold is a variable cost in this company.
Required:
a. Prepare a traditional format income statement for July.
b. Prepare a contribution format income statement for July.
In: Accounting
Fanelli Corporation, a merchandising company, reported the following results for July:
| Number of units sold | 6,200 | |
| Selling price per unit | $ | 600 |
| Unit cost of goods sold | $ | 414 |
| Variable selling expense per unit | $ | 52 |
| Total fixed selling expense | $ | 125,700 |
| Variable administrative expense per unit | $ | 30 |
| Total fixed administrative expense | $ | 207,600 |
Cost of goods sold is a variable cost in this company.
Required:
a. Prepare a traditional format income statement for July.
b. Prepare a contribution format income statement for July.
In: Accounting
Fanelli Corporation, a merchandising company, reported the following results for July:
| Number of units sold | 6,200 | |
| Selling price per unit | $ | 600 |
| Unit cost of goods sold | $ | 414 |
| Variable selling expense per unit | $ | 52 |
| Total fixed selling expense | $ | 125,700 |
| Variable administrative expense per unit | $ | 30 |
| Total fixed administrative expense | $ | 207,600 |
Cost of goods sold is a variable cost in this company.
Required:
a. Prepare a traditional format income statement for July.
b. Prepare a contribution format income statement for July.
In: Accounting
Cost of Goods Manufactured for a Manufacturing Company
Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.
| Work in process inventory, August 1 | $19,660 | $41,650 | (e) | ||
| Total manufacturing costs incurred during August | 332,750 | (c) | 1,075,000 | ||
| Total manufacturing costs | (a) | $515,770 | $1,240,000 | ||
| Work in process inventory, August 31 | 23,500 | 54,000 | (f) | ||
| Cost of goods manufactured | (b) | (d) | $1,068,000 |
| a. | $ |
| b. | $ |
| c. | $ |
| d. | $ |
| e. | $ |
| f. | $ |
In: Accounting
Cost of Goods Manufactured for a Manufacturing Company
Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.
| Work in process inventory, August 1 | $2,100 | $17,600 | (e) | ||
| Total manufacturing costs incurred during August | 14,100 | (c) | 103,000 | ||
| Total manufacturing costs | (a) | $205,900 | $111,800 | ||
| Work in process inventory, August 31 | 3,100 | 43,200 | (f) | ||
| Cost of goods manufactured | (b) | (d) | $93,900 |
| a. | $ |
| b. | $ |
| c. | $ |
| d. | $ |
| e. | $ |
| f. | $ |
In: Accounting
Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell's total overhead costs consist of assembly costs and inspection costs. The following information is available:
| Cost | Titanium | Aluminum | Total Cost |
| Assembly | 500 mach. hours | 500 mach. hours | $45,000 |
| Inspections | 350 | 150 | $75,000 |
| 2,100 labor hours | 1,900 labor hours |
Sitwell is considering switching from one overhead rate based on
labor hours to activity-based costing.
Using activity-based costing, how much assembly cost is assigned to
titanium racquets?
In: Accounting
Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below:
| Processing | $ | 5,170 |
| Supervising | $ | 31,640 |
| Other | $ | 11,900 |
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 appear below:
| MHs (Processing) |
Batches (Supervising) |
|
| Product M0 | 10,400 | 700 |
| Product M5 | 600 | 700 |
| Total | 11,000 | 1,400 |
Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
| Product M0 | Product M5 | |||
| Sales (total) | $ | 84,700 | $ | 97,400 |
| Direct materials (total) | $ | 30,000 | $ | 32,900 |
| Direct labor (total) | $ | 29,300 | $ | 43,200 |
What is the overhead cost assigned to Product M5 under activity-based costing?
2.
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:
Overhead costs:
| Equipment depreciation | $ | 87,000 | |||||
| Supervisory expense | $ | 9,400 | |||||
Distribution of Resource Consumption Across Activity Cost Pools:
| Activity Cost Pools | |||||
| Machining | Order Filling | Other | |||
| Equipment depreciation | 0.60 | 0.30 | 0.10 | ||
| Supervisory expense | 0.60 | 0.20 | 0.20 | ||
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
| MHs (Machining) | Orders (Order Filling) | |
| Product M0 | 1,510 | 1,030 |
| Product H2 | 9,030 | 2,250 |
| Total | 10,540 | 3,280 |
The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:
In: Accounting
Questions:
1. In a company that uses job order costing, the entry to transfer the costs from WIP to Finished Goods would include a debit to Finished Goods equal to the
A. total cost of all units worked on during the period.
B. total cost of all units in batches completed and sold during the period.
C. total cost of all units in batches completed during the period.
D. current period costs related to units in batches completed during the period.
2. An engineering company that uses job order (project) costing should not include which of the following in determining the total estimated overhead?
A. Receptionist salary
B. Engineer salaries
C. Office rent
D. Depreciation of office equipment
3. Marley Mar Company uses job order costing. Their predetermined MOH rate is $15 per direct labor hour.
They started Job 875 in September. As of September 30, the total cost in WIP for Job 875 was $3,650.
They finished the job in October (50 units produced.) Direct materials added to the job in October cost $1,895. Direct labor cost in October was $400 (40 hours). What was the cost per unit for Job 875?
4. Under the FIFO method of process costing , the calculation of cost per equivalent unit of production considers:
A. current period costs only
B. current period costs plus the cost of beginning work in process inventory
C. current period costs plus the cost of ending work in process inventory
D. current period costs less the cost of beginning work in process inventory
5. In a company using process costing (FIFO), there were 600 units in beginning inventory (60% complete with respect to materials costs). What's the units that should be included in the calculation of equivalent units of production for materials?(No decimals.)
6. There were two departments in a company using process costing (FIFO) - Assembly and Finishing. In the Finishing department, there were 5,000 units in ending inventory. The units were 80% complete with respect to Finishing material costs and 75% complete with respect to Finishing Conversion costs. What's the units that should be included in the calculation of equivalent units of production in the Finishing Department for Transferred in (Assembly) costs? (Use commas. No decimals.)
In: Accounting