Question No.1
An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The
annual demand is approximately 1500 batteries. The supplier pays 25 R.O for each battery
and estimates that the annual holding cost is 30% of the battery's value. It costs
approximately 30 R.O to place an order. The supplier currently orders 125 batteries per
month.
a. Determine the EOQ.
b. How many orders will be placed per year using the EOQ?
c. Determine the total cost for the current order quantity.
d. Determine the total inventory cost for the EOQ, How has ordering cost changed?
Question No2:
Find EOQ if annual demand is 5500 cases of Coco cola and fixed ordering cost is 15 R.O per
order and purchase cost is 3 R.O per case and holding cost is 25% of value of inventory per year.
please ,give answer clearly Today
In: Accounting
Zachary Manufacturing Company established the following standard price and cost data:
Sales price | $ | 8.90 | per unit |
Variable manufacturing cost | $ | 3.70 | per unit |
Fixed manufacturing cost | $ | 2,100 | total |
Fixed selling and administrative cost | $ | 1,000 | total |
Zachary planned to produce and sell 3,000 units. Actual production and sales amounted to 3,300 units.
Assume that the actual sales price is $8.70 per unit and that the actual variable cost is $3.95 per unit. The actual fixed manufacturing cost is $1,900, and the actual selling and administrative costs are $1,030.
Required
a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Flexible Budget Variances | ||
Sales | U | |
Variable manufacturing | U | |
Contribution margin | U | |
Fixed manufacturing | F | |
Fixed selling and administrative cost | U | |
Net income (loss) | U | |
In: Accounting
Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function
Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
| Month | Labor Cost | Employee Hours | |||
|---|---|---|---|---|---|
| January | $7,000 | 360 | |||
| February | 8,140 | 550 | |||
| March | 9,899 | 630 | |||
| April | 9,787 | 610 | |||
| May | 8,490 | 480 | |||
| June | 7,450 | 350 | |||
| July | 9,490 | 570 | |||
| August | 7,531 | 310 | |||
Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant.
In your calculations, round the variable rate per employee hour to the nearest cent.
Required:
1. Using the high-low method, calculate the
fixed cost of labor.
$
2. Using the high-low method, calculate the variable rate.
$ per employee hour
3. Using the high-low method, construct the cost formula for total labor cost.
Total labor cost = $ + [$ × Employee hours]
In: Accounting
Cotton White, Inc., makes specialty clothing for chefs. The
company reported the following costs for 2015:
| Factory rent | $ | 37,700 | |
| Company advertising | 24,000 | ||
| Wages paid to seamstresses | 76,400 | ||
| Depreciation on salespersons' vehicles | 32,000 | ||
| Thread | 1,040 | ||
| Utilities for factory | 24,200 | ||
| Cutting room supervisor's salary | 31,300 | ||
| President’s salary | 75,400 | ||
| Premium quality cotton material | 40,500 | ||
| Buttons | 830 | ||
| Factory insurance | 18,000 | ||
| Depreciation on sewing machines | 7,600 | ||
| Wages paid to cutters | 51,000 | ||
Required:
1. Compute the cost of direct materials for Cotton
White.
2. Compute the cost of direct labor for Cotton
White.
3. Compute the cost of manufacturing overhead for
Cotton White.
4. Compute the total manufacturing cost for Cotton
White.
5. Compute the prime cost for Cotton White.
6. Compute the conversion cost for Cotton
White.
7. Compute the total period cost for Cotton
White.
In: Accounting
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units. During 2022, XYZ Company produced 30,000 units and sold 32,000 units. The following information was taken from XYZ's accounting records for 2021 and 2022: 2021 2022 Direct materials cost per unit ............ $18 $17 Direct labor cost per unit ................ $16 $21 Variable overhead cost per unit ........... $7 $9 Variable selling & admin cost per unit .... $4 $6 Fixed overhead (total cost) ............... $105,000 $144,000 Fixed selling & admin (total cost) ........ $88,000 $96,000 Assume the selling price of XYZ Company's product was $64 per unit for both years. Calculate XYZ Company's 2022 gross profit using absorption costing. Assume XYZ Company employs a LIFO inventory cost flow assumption.
In: Accounting
The Fisher Co. manufactures baseballs. All material is placed in process as soon as the goods are started in Department A. and conversion costs are incurred evenly throughout the process. Upon completion of the product it is immediately transferred to Department B. Department A-Month of April 20xx Status -Work in process 3/31/xx at 50% conversion 20,000 units completed at a cost of $300,000 ( $250,000 material cost and $50,000 conversion cost.) -Units started during April 50,000 units -Units completed during April 30,000 units -Work in process April 30th were 40,000 units 50% converted for conversion -Direct material added during April $450,000 -Conversion cost added during April $200,000 Required: (5 Step production cost report) 1. Calculate the total cost of the goods completed in Department A during April. 2. Calculate the total cost of the ending work in process in Department A for April.
In: Accounting
Texas Co. established the following overhead cost pools and cost drivers: Budgeted Estimated Overhead Cost Pool Overhead Cost Driver Cost Driver Level Quality controls $780,000 # of inspections 26,000 inspections Machine setups $720,000 # of setups 12,000 setups Other overhead costs $900,000 # of machine hrs 50,000 machine hrs Total overhead costs $2,400,000 A recent order for sailboats used: Quality inspections 750 inspections Machine setups 500 setups Machine hours (MHs) 2,400 machine hours Required: a. What is the overhead rate per machine hour if the number of machine hours (MHs) is used as a single cost driver under traditional costing system?
b. Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver?
c. Utilizing ABC, how much total overhead is assigned to the order?
In: Accounting
During 2021, its first year of operations, XYZ Company produced 25,000
units and sold 19,000 units. During 2022, XYZ Company produced 30,000
units and sold 32,000 units. The following information was taken from
XYZ's accounting records for 2021 and 2022:
2021 2022
Direct materials cost per unit ............ $18 $17
Direct labor cost per unit ................ $16 $21
Variable overhead cost per unit ........... $7 $9
Variable selling & admin cost per unit .... $4 $6
Fixed overhead (total cost) ............... $105,000 $144,000
Fixed selling & admin (total cost) ........ $88,000 $96,000
Assume the selling price of XYZ Company's product was $64 per unit for
both years.
Calculate XYZ Company's 2022 net income using variable costing.
Assume XYZ Company employs a FIFO inventory cost flow assumption.In: Accounting
During 2021, its first year of operations, XYZ Company produced 25,000
units and sold 19,000 units. During 2022, XYZ Company produced 30,000
units and sold 32,000 units. The following information was taken from
XYZ's accounting records for 2021 and 2022:
2021 2022
Direct materials cost per unit ............ $18 $17
Direct labor cost per unit ................ $16 $21
Variable overhead cost per unit ........... $7 $9
Variable selling & admin cost per unit .... $4 $6
Fixed overhead (total cost) ............... $105,000 $144,000
Fixed selling & admin (total cost) ........ $88,000 $96,000
Assume the selling price of XYZ Company's product was $64 per unit for
both years.
Calculate XYZ Company's 2022 net income using variable costing.
Assume XYZ Company employs a FIFO inventory cost flow assumption.In: Accounting
Ferris Company began 2018 with 6,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January 2018 are as follows:
| Purchases | |||||||||
| Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
| Jan. 10 | 5,000 | $ | 8 | $ | 40,000 | ||||
| Jan. 18 | 6,000 | 9 | 54,000 | ||||||
| Totals | 11,000 | 94,000 | |||||||
*Includes purchase price and cost of freight.
| Sales | ||
| Date of Sale | Units | |
| Jan. 5 | 3,000 | |
| Jan. 12 | 2,000 | |
| Jan. 20 | 4,000 | |
| Total | 9,000 | |
8,000 units were on hand at the end of the month.
Required:
Calculate January's ending inventory and cost of goods sold for the
month using each of the following alternatives:
1. FIFO, periodic system.
2. LIFO, periodic system.
3. LIFO, perpetual system.
4. Average cost, periodic system.
5. Average cost, perpetual system.
please provide answer of all 5 parts. Thanks.
In: Accounting