Work in Process Account Data for Two Months; Cost of Production Reports
Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting at the beginning of the rolling process. The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows:
Bal., 800 units, 20% completed:
Direct materials (800 x $4.6) $ 3,680
Conversion (800 x 20% x $1.9) 304
$ 3,984
From Smelting Department, 18,320 units $86,104
Direct labor 23,764
Factory overhead 12,796
During September, 800 units in process on September 1 were completed, and of the 18,320 units entering the department, all were completed except 1,700 units that were 60% completed. Charges to Work in Process—Rolling for October were as follows:
From Smelting Department, 21,100 units $103,390
Direct labor 29,590
Factory overhead 15,938
During October, the units in process at the beginning of the month were completed, and of the 21,100 units entering the department, all were completed except 1,000 units that were 90% completed.
Required:
1. Enter the balance as of September 1 in a four-column account for Work in Process—Rolling. Record the debits and the credits in the account for September. Construct a cost of production report and present computations for determining (a) equivalent units of production for materials and conversion, (b) costs per equivalent unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in September, and (d) work in process inventory. If an amount box does not require an entry, leave it blank.
ACCOUNT Work in Process-Rolling Department ACCOUNT NO.
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
Sept. 1 Bal., 800 units, 20% completed
3,984
3,984
Sept. 30 Smelting Dept., 18,320 units at $4.7
86,104
Sept. 30 Direct labor
23,764
Sept. 30 Factory overhead
12,796
Sept. 30 Finished goods
Sept. 30 Bal., 1,700 units, 60% completed
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
Pittsburgh Aluminum Company
Cost of Production Report-Rolling Department
For the Month Ended September 30
Whole Units Equivalent Units
Units Direct Materials (a) Conversion (a)
Units charged to production:
Inventory in process, September 1
Received from Smelting Department
Total units accounted for by the Rolling Department
Units to be assigned costs:
Inventory in process, September 1
Started and completed in September
Transferred to finished goods in September
Inventory in process, September 30
Total units to be assigned costs
Costs
Costs Direct Materials Conversion Total Costs
Cost per equivalent unit:
Total costs for September in Rolling Department $
$
Total equivalent units
Cost per equivalent unit (b) $
$
Costs assigned to production:
Inventory in process, September 1 $
Costs incurred in September
Total costs accounted for by the Rolling Department $
Costs allocated to completed and partially completed units:
Inventory in process, September 1 balance (c) $
To complete inventory in process, September 1 (c) $
$
Cost of completed September 1 work in process $
Started and completed in September (c) $
Transferred to finished goods in September (c) $
Inventory in process, September 30 (d)
Total costs assigned by the Rolling Department $
2. Provide the same information for October by recording the October transactions in the four-column work in process account. Construct a cost of production report, and present the October computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.
ACCOUNT Work in Process-Rolling Department ACCOUNT NO.
Balance
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
October 1 Balance
October 31 Smelting Dept., 21,100 units at $4.9
October 31 Direct labor
October 31 Factory overhead
October 31 Finished goods
October 31 Bal., 1,000 units, 90% completed
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
Pittsburgh Aluminum Company
Cost of Production Report-Rolling Department
For the Month Ended October 31
Whole Units Equivalent Units
Units Direct Materials (a) Conversion (a)
Units charged to production:
Inventory in process, October 1
Received from Smelting Department
Total units accounted for by the Rolling Department
Units to be assigned costs:
Inventory in process, October 1
Started and completed in October
Transferred to finished goods in October
Inventory in process, October 31
Total units to be assigned costs
Costs
Costs Direct Materials Conversion Total Costs
Cost per equivalent unit:
Total costs for October in Rolling Department $
$
Total equivalent units
Cost per equivalent unit (b) $
$
Costs assigned to production:
Inventory in process, October 1 $
Costs incurred in October
Total costs accounted for by the Rolling Department $
Costs allocated to completed and partially completed units:
Inventory in process, October 1 balance (c) $
To complete inventory in process, October 1 (c) $
$
Cost of completed October 1 work in process $
Started and completed in October (c)
Transferred to finished goods in October (c) $
Inventory in process, October 31 (d)
Total costs assigned by the Rolling Department $
3. The cost per equivalent unit for direct materials
from August to October. The cost per equivalent unit for conversion costs
from August to October. These changes
be investigated for their underlying causes, and any necessary corrective actions should be taken.
In: Accounting
Work in Process Account Data for Two Months; Cost of Production Reports
Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting at the beginning of the rolling process. The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows:
Bal., 400 units, 30% completed:
Direct materials (400 x $3.1)$ 1,240
Conversion (400 x 30% x $1.3)156
$ 1,396
From Smelting Department, 9,320 units$29,824
Direct labor8,672
Factory overhead4,670
During September, 400 units in process on September 1 were completed, and of the 9,320 units entering the department, all were completed except 700 units that were 90% completed. Charges to Work in Process—Rolling for October were as follows:
From Smelting Department, 10,700 units$36,380
Direct labor10,720
Factory overhead5,765
During October, the units in process at the beginning of the month were completed, and of the 10,700 units entering the department, all were completed except 500 units that were 60% completed.
Required:
1. Enter the balance as of September 1 in a four-column account for Work in Process—Rolling. Record the debits and the credits in the account for September. Construct a cost of production report and present computations for determining (a) equivalent units of production for materials and conversion, (b) costs per equivalent unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in September, and (d) work in process inventory. If an amount box does not require an entry, leave it blank.
ACCOUNTWork in Process-Rolling Department ACCOUNT NO.
BALANCE
DATEITEMPOST. REF.DEBITCREDITDEBITCREDIT
Sept. 1Bal., 400 units, 30% completed
Sept. 30Smelting Dept., 9,320 units at $3.2
Sept. 30Direct labor
Sept. 30Factory overhead
Sept. 30Finished goods
Sept. 30Bal., 700 units, 90% completed
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
Pittsburgh Aluminum Company
Cost of Production Report-Rolling Department
For the Month Ended September 30
Whole UnitsEquivalent Units
Units Direct Materials (a)Conversion (a)
Units charged to production:
Inventory in process, September 1
Received from Smelting Department
Total units accounted for by the Rolling Department
Units to be assigned costs:
Inventory in process, September 1
Started and completed in September
Transferred to finished goods in September
Inventory in process, September 30
Total units to be assigned costs
Costs
Costs Direct Materials Conversion Total Costs
Cost per equivalent unit:
Total costs for September in Rolling Department $ $
Total equivalent units
Cost per equivalent unit (b) $ $
Costs assigned to production:
Inventory in process, September 1 $
Costs incurred in September
Total costs accounted for by the Rolling Department $
Costs allocated to completed and partially completed units:
Inventory in process, September 1 balance (c) $
To complete inventory in process, September 1 (c) $ $
Cost of completed September 1 work in process $
Started and completed in September (c) $
Transferred to finished goods in September (c) $
Inventory in process, September 30 (d)
Total costs assigned by the Rolling Department $
2. Provide the same information for October by recording the October transactions in the four-column work in process account. Construct a cost of production report, and present the October computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.
ACCOUNTWork in Process-Rolling Department ACCOUNT NO.
Balance
DATEITEMPOST. REF.DEBITCREDITDEBITCREDIT
October 1Balance
October 31Smelting Dept., 10,700 units at $3.4
October 31Direct labor
October 31Factory overhead
October 31Finished goods
October 31Bal., 500 units, 60% completed
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
Pittsburgh Aluminum Company
Cost of Production Report-Rolling Department
For the Month Ended October 31
Whole UnitsEquivalent Units
Units Direct Materials (a)Conversion (a)
Units charged to production:
Inventory in process, October 1
Received from Smelting Department
Total units accounted for by the Rolling Department
Units to be assigned costs:
Inventory in process, October 1
Started and completed in October
Transferred to finished goods in October
Inventory in process, October 31
Total units to be assigned costs
Costs
Costs Direct Materials Conversion Total Costs
Cost per equivalent unit:
Total costs for October in Rolling Department $ $
Total equivalent units
Cost per equivalent unit (b) $ $
Costs assigned to production:
Inventory in process, October 1 $
Costs incurred in October
Total costs accounted for by the Rolling Department $
Costs allocated to completed and partially completed units:
Inventory in process, October 1 balance (c) $
To complete inventory in process, October 1 (c) $ $
Cost of completed October 1 work in process $
Started and completed in October (c)
Transferred to finished goods in October (c) $
Inventory in process, October 31 (d)
Total costs assigned by the Rolling Department $
3. The cost per equivalent unit for direct materials from August to October. The cost per equivalent unit for conversion costs from August to October. These changes be investigated for their underlying causes, and any necessary corrective actions should be taken.
In: Accounting
make sure complete all parts
Work in Process Account Data for Two Months; Cost of Production Reports
Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process—filling on April 1 and debits to the account during April were as follows:
| Bal., 1,000 units, 30% completed: | ||
| Direct materials (1,000 x $ 5.30) | $ 5,300 | |
| Conversion (1,000 x 30% x $2.20) | 660 | |
| $ 5,960 | ||
| From Cooking Department, 22,200 units | $119,880 | |
| Direct labor | 33,981 | |
| Factory overhead | 18,298 | |
During April, 1,000 units in process on April 1 were completed, and of the 22,200 units entering the department, all were completed except 1,700 units that were 90% completed. Charges to Work in Process—Filling for May were as follows:
| From Cooking Department, 25,500 units | $142,800 |
| Direct labor | 39,230 |
| Factory overhead | 21,130 |
During May, the units in process at the beginning of the month were completed, and of the 25,500 units entering the department, all were completed except 1,300 units that were 60% completed.
Required:
1. Enter the balance as of April 1, in a four-column account for Work in Process— Filling. Record the debits and the credits in the account for April. Construct a cost of production report, and present computations for determining (a) equivalent units of production for materials and conversion, (b) costs per equivalent unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in April, and (d) work in process inventory. If an amount box does not require an entry, leave it blank.
| ACCOUNT | Work in Process-Filling Department | ACCOUNT NO. | ||||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| Apr. 1 | Bal., 1,000 units, 30% completed | |||||
| Apr. 30 | Cooking Dept., 22,200 units at $5.40 | |||||
| Apr. 30 | Direct labor | |||||
| Apr. 30 | Factory overhead | |||||
| Apr. 30 | Finished goods | |||||
| Apr. 30 | Bal., 1,700 units, 90% completed | |||||
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
| Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended April 30 |
|||
|---|---|---|---|
| Whole Units | Equivalent Units | ||
| Units | Direct Materials (a) | Conversion (a) | |
| Units charged to production: | |||
| Inventory in process, April 1 | |||
| Received from Cooking Department | |||
| Total units accounted for by the Filling Department | |||
| Units to be assigned costs: | |||
| Inventory in process, April 1 | |||
| Started and completed in April | |||
| Transferred to finished goods in April | |||
| Inventory in process, April 30 | |||
| Total units to be assigned costs | |||
| Costs | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Costs | Direct Materials | Conversion | Total Costs | |||||||||
| Costs per equivalent unit: | ||||||||||||
| Total costs for April in Filling Department | $ | $ | ||||||||||
| Total equivalent units | ||||||||||||
| Cost per equivalent unit (b) | $ | $ | ||||||||||
| Costs charged to production: | ||||||||||||
| Inventory in process, April 1 | $ | |||||||||||
| Costs incurred in April | ||||||||||||
| Total costs accounted for by the Filling Department | $ | |||||||||||
| Cost allocated to completed and partially completed units: | ||||||||||||
| Inventory in process, April 1 balance (c) | $ | |||||||||||
| To complete inventory in process, April 1 (c) | $ | $ | ||||||||||
| Cost of completed April 1 work in process | $ | |||||||||||
| Started and completed in April (c) | $ | |||||||||||
| Transferred to finished goods in April (c) | $ | |||||||||||
| Inventory in process, April 30 (d) | ||||||||||||
| Total costs assigned by the Filling Department | $ | |||||||||||
2. Provide the same information for May by recording the May transactions in the four-column work in process account. Construct a cost of production report, and present the May computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.
| ACCOUNT | Work in Process-Filling Department | ACCOUNT NO. | ||||
|---|---|---|---|---|---|---|
| Balance | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| May 1 | Balance | |||||
| May 31 | Cooking Dept., 25,500 units at $5.6 | |||||
| May 31 | Direct labor | |||||
| May 31 | Factory overhead | |||||
| May 31 | Finished goods | |||||
| May 31 | Bal., 1,300 units, 60% completed | |||||
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
| Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended May 31 |
|||
|---|---|---|---|
| Whole Units | Equivalent Units | ||
| Units | Direct Materials (a) | Conversion (a) | |
| Units charged to production: | |||
| Inventory in process, May 1 | |||
| Received from Cooking Department | |||
| Total units accounted for by the Filling Department | |||
| Units to be assigned costs: | |||
| Inventory in process, May 1 | |||
| Started and completed in May | |||
| Transferred to finished goods in May | |||
| Inventory in process, May 31 | |||
| Total units to be assigned costs | |||
| Costs | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Costs | Direct Materials | Conversion | Total Costs | |||||||||
| Costs per equivalent unit: | ||||||||||||
| Total costs for May in Filling Department | $ | $ | ||||||||||
| Total equivalent units | ||||||||||||
| Cost per equivalent unit (b) | $ | $ | ||||||||||
| Costs charged to production: | ||||||||||||
| Inventory in process, May 1 | $ | |||||||||||
| Costs incurred in May | ||||||||||||
| Total costs accounted for by the Filling Department | $ | |||||||||||
| Cost allocated to completed and partially completed units: | ||||||||||||
| Inventory in process, May 1 balance (c) | $ | |||||||||||
| To complete inventory in process, May 1 (c) | $ | $ | ||||||||||
| Cost of completed May 1 work in process | $ | |||||||||||
| Started and completed in May (c) | ||||||||||||
| Transferred to finished goods in May (c) | $ | |||||||||||
| Inventory in process, May 31 (d) | ||||||||||||
| Total costs assigned by the Filling Department | $ | |||||||||||
3. The cost per equivalent unit for direct materials from March to May. The cost per equivalent unit for conversion costs from March to May. These changes be investigated for their underlying causes, and any necessary corrective actions should be taken.
In: Accounting
Work in Process Account Data for Two Months; Cost of Production Reports
Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting at the beginning of the rolling process. The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows:
| Bal., 800 units, 60% completed: | ||
| Direct materials (800 x $ 7) | $ 5,600 | |
| Conversion (800 x 60% x $2.9) | 1,392 | |
| $ 6,992 | ||
| From Smelting Department, 19,200 units | $136,320 | |
| Direct labor | 35,256 | |
| Factory overhead | 18,984 | |
During September, 800 units in process on September 1 were completed, and of the 19,200 units entering the department, all were completed except 1,800 units that were 20% completed. Charges to Work in Process—Rolling for October were as follows:
| From Smelting Department, 22,100 units | $161,330 |
| Direct labor | 47,030 |
| Factory overhead | 25,324 |
During October, the units in process at the beginning of the month were completed, and of the 22,100 units entering the department, all were completed except 1,000 units that were 80% completed.
Required:
1. Enter the balance as of September 1 in a four-column account for Work in Process— Rolling. Record the debits and the credits in the account for September. Construct a cost of production report and present computations for determining (a) equivalent units of production for materials and conversion, (b) costs per equivalent unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in September, and (d) work in process inventory. If an amount box does not require an entry, leave it blank.
| ACCOUNT | Work in Process-Rolling Department | ACCOUNT NO. | ||||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| Sept. 1 | Bal., 800 units, 60% completed | |||||
| Sept. 30 | Smelting Dept., 19,200 units at $7.1 | |||||
| Sept. 30 | Direct labor | |||||
| Sept. 30 | Factory overhead | |||||
| Sept. 30 | Finished goods | |||||
| Sept. 30 | Bal., 1,800 units, 20% completed | |||||
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
| Pittsburgh Aluminum
Company Cost of Production Report-Rolling Department For the Month Ended September 30 |
|||
|---|---|---|---|
| Whole Units | Equivalent Units | ||
| Units | Direct Materials (a) | Conversion (a) | |
| Units charged to production: | |||
| Inventory in process, September 1 | |||
| Received from Smelting Department | |||
| Total units accounted for by the Rolling Department | |||
| Units to be assigned costs: | |||
| Inventory in process, September 1 | |||
| Started and completed in September | |||
| Transferred to finished goods in September | |||
| Inventory in process, September 30 | |||
| Total units to be assigned costs | |||
| Costs | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Costs | Direct Materials | Conversion | Total Costs | |||||||||
| Cost per equivalent unit: | ||||||||||||
| Total costs for September in Rolling Department | $ | $ | ||||||||||
| Total equivalent units | ||||||||||||
| Cost per equivalent unit (b) | $ | $ | ||||||||||
| Costs assigned to production: | ||||||||||||
| Inventory in process, September 1 | $ | |||||||||||
| Costs incurred in September | ||||||||||||
| Total costs accounted for by the Rolling Department | $ | |||||||||||
| Costs allocated to completed and partially completed units: | ||||||||||||
| Inventory in process, September 1 balance (c) | $ | |||||||||||
| To complete inventory in process, September 1 (c) | $ | $ | ||||||||||
| Cost of completed September 1 work in process | $ | |||||||||||
| Started and completed in September (c) | $ | |||||||||||
| Transferred to finished goods in September (c) | $ | |||||||||||
| Inventory in process, September 30 (d) | ||||||||||||
| Total costs assigned by the Rolling Department | $ | |||||||||||
2. Provide the same information for October by recording the October transactions in the four-column work in process account. Construct a cost of production report, and present the October computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.
| ACCOUNT | Work in Process-Rolling Department | ACCOUNT NO. | ||||
|---|---|---|---|---|---|---|
| Balance | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| October 1 | Balance | |||||
| October 31 | Smelting Dept., 22,100 units at $7.3 | |||||
| October 31 | Direct labor | |||||
| October 31 | Factory overhead | |||||
| October 31 | Finished goods | |||||
| October 31 | Bal., 1,000 units, 80% completed | |||||
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
| Pittsburgh Aluminum
Company Cost of Production Report-Rolling Department For the Month Ended October 31 |
|||
|---|---|---|---|
| Whole Units | Equivalent Units | ||
| Units | Direct Materials (a) | Conversion (a) | |
| Units charged to production: | |||
| Inventory in process, October 1 | |||
| Received from Smelting Department | |||
| Total units accounted for by the Rolling Department | |||
| Units to be assigned costs: | |||
| Inventory in process, October 1 | |||
| Started and completed in October | |||
| Transferred to finished goods in October | |||
| Inventory in process, October 31 | |||
| Total units to be assigned costs | |||
| Costs | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Costs | Direct Materials | Conversion | Total Costs | |||||||||
| Cost per equivalent unit: | ||||||||||||
| Total costs for October in Rolling Department | $ | $ | ||||||||||
| Total equivalent units | ||||||||||||
| Cost per equivalent unit (b) | $ | $ | ||||||||||
| Costs assigned to production: | ||||||||||||
| Inventory in process, October 1 | $ | |||||||||||
| Costs incurred in October | ||||||||||||
| Total costs accounted for by the Rolling Department | $ | |||||||||||
| Costs allocated to completed and partially completed units: | ||||||||||||
| Inventory in process, October 1 balance (c) | $ | |||||||||||
| To complete inventory in process, October 1 (c) | $ | $ | ||||||||||
| Cost of completed October 1 work in process | $ | |||||||||||
| Started and completed in October (c) | ||||||||||||
| Transferred to finished goods in October (c) | $ | |||||||||||
| Inventory in process, October 31 (d) | ||||||||||||
| Total costs assigned by the Rolling Department | $ | |||||||||||
3. The cost per equivalent unit for direct materials increased from August to October. The cost per equivalent unit for conversion costs increased from August to October. These changes should be investigated for their underlying causes, and any necessary corrective actions should be taken.
In: Accounting
Q-7 A company sells its two products A and B. The prices of products A and B are $5 and $8 per unit respectively. The material costs for A and B are $0.5 and $1.5 per unit respectively. The labour charges of $0.5 per unit is same for both of the products A and B. The fixed cost of the business is estimated as $3000.
In: Finance
show excel function please
| SAMPLE HOSPITAL INC. | ||||||||||
| Activity Cost | $ 400,000 | $ 3,450,000 | $ 5,000,000 | |||||||
| Activity Base | 6,000 | patients | 23,000 | days | 200,000 | hours | ||||
| Activity rate | ?? | per patient | ?? | per day | ?? | per hour | ||||
| Procedure A | Usage | Rate | Total | |||||||
| Scheduling and Admitting | 300 | patient | ?? | ?? | ||||||
| Housekeeping | 1,175 | days | ? | ? | ||||||
| Nursing | 17,500 | hours | ? | ? | ||||||
| Total | ? | |||||||||
| Procedure B | ||||||||||
| Scheduling and Admitting | 600 | patient | ? | ? | ||||||
| Housekeeping | 2,300 | days | ? | ? | ||||||
| Nursing | 7,000 | hours | ? | ? | ||||||
| Total | ? | |||||||||
| Procedure C | ||||||||||
| Scheduling and Admitting | 1,050 | patient | ? | ? | ||||||
| Housekeeping | 1,800 | days | ? | ? | ||||||
| Nursing | 23,000 | hours | ? | ? | ||||||
| Total | ? | |||||||||
| Procedure A | Procedure B | Procedure C | ||||||||
| Reimbursement ($1,000 per patient) | ? | ? | ? | |||||||
| Cost per procedure | ? | ? | ? | |||||||
| Excess (deficiency) | ? | ? | ? | |||||||
| Analysis: | ||||||||||
| ???? | ||||||||||
In: Accounting
Andretti Company has a single product called a Dak.
The company normally produces and sells 88000 Daks each year at a
selling price of 56 per unit. The companys unit costs at this level
of activity are given below:
Direct materials 6.50
direct labor
9.00
variable manufacturing overhead 3.30
fixed manufacturing overhead. 4.00 ( 352000
total)
variable selling expenses 2.70
fixed selling expenses 3.50 ( 308000 total)
total cost per unit 29 $
A number of questions relating to the production and sale of Daks
follow.
How much total contribution margin will Andretti forgo if it closes
the plant for two months?
how much total fixed cost will the company avoid if it closes the
plant for two months?
what is the financial advantage, disadvantage of closing the plant
for the two month period?
In: Accounting
Complete the multi product contribution margin income statement with the given information:
| Net income earned during most recent period: | $ 65,000 | ||||
| Contribution margin ratio: | 15% | ||||
| Fixed costs incurred during most recent period: | $ 175,000 | ||||
| Statutory tax rate: | 37% | ||||
| Operating income generated at breakeven: | $ - | ||||
| Applicable to the Football Division | |||||
| Selling price per football | $ 18.00 | ||||
| Total variable cost dollars incurred by Football Division | $ 952,088 | ||||
| Quantity of footballs sold during most recent period: | 64,000 | ||||
| Applicable to the Baseball Division | |||||
| Variable cost per baseball: | $ 3.24 | ||||
| Footballs | Baseballs | Total | |||||||
| Total $ | $ per Unit | Sales Ratios | Total $ | $ per Unit | Sales Ratios | Total $ | Sales Ratios* | ||
| Revenues | 100% | ||||||||
| Variable Costs | $ 952,088 | ||||||||
| Contribution Margin | |||||||||
| Fixed Costs | |||||||||
| Operating income | |||||||||
| Income Tax | |||||||||
| Net income | |||||||||
In: Accounting
1. Until recently Alex worked as an economist, earning $55,000 annually. Then she inherited a piece of commercial real estate that had been renting for $15,000 annually. Alex decided to leave her job and operate a brewpub in the real estate she now owns. At the end of the first year, her records showed total revenues of $340,000 and total payments of $230,000 for employees, utilities, and other supplies. Her economic profit at the end of one year is:
A) $95,000.
B) $40,000.
C) $0.
D) $110,000.
2: Use the following to answer question
Table: Labor and Output
| Quantity of labor | Quantity of output |
| 0 | 0 |
| 1 | 18 |
| 2 | 33 |
| 3 | 45 |
| 4 | 54 |
| 5 | 60 |
Referring to the accompanying table, the marginal product of the third unit of labor is:
A) 45 units of output.
B) 12 units of output.
C) 9 units of output.
D) 15 units of output.
3. Suppose that for 30 bicycles, the total fixed cost is $2,000 and total variable cost is $4,000. Then the average total cost of 30 bicycles equals
A) $50.
B) $100.
C) $150.
D) $200.
In: Economics
Electronic Inc (EI) produces three types of circuit boards, A, B and C for the Computer Manufacturers and after sales maintenance industries. The cost system used by EI until 2013 was classified as the traditional where all cost except direct material and direct labour were allocated to each board based on the direct labour hours used to produce them, (i.e direct labour was the cost driver). The new Management accountant undertook a cost study to improve the costing and pricing of the boards and it was determined that they were six clearly identifiable cost pools which could be used to implement an ABC costing system.
The following table details the budgeted information for the year 2015. Total Indirect Production cost for the year is budgeted to be $ 13,646,500.
|
Board A |
Board B |
Board C |
Total Cost |
||
|
Units to be |
100,000 |
8,000 |
50,000 |
||
|
produced |
|||||
|
Direct material |
$66 per unit |
$88 per unit |
$45 per unit |
$ 9,554,000 |
|
|
Direct labor |
4 hrs per unit |
18 hrs per unit |
9 hrs per unit |
$ 13,916,000 |
The cost pools, their drivers and costs are listed in the table below based on the cost study performed by the Management Accountant.
|
Activity cost |
Cost driver |
Estimated |
Expected |
Expected |
Expected |
|
|
pools |
overhead cost |
activity |
activity |
activity |
||
|
Board A |
Board B |
Board C |
||||
|
Machining Cost |
Machine hours |
9,360,000 |
7 MHR per |
15 MHR per |
9 MHR |
|
|
(MHR) |
unit |
unit |
per unit |
|||
|
Material |
Kilograms of |
1.296,000 |
3 kg per unit |
4 kg per unit |
2 kg per |
|
|
Handling |
material handled |
unit |
||||
|
Production set |
Number of set ups |
1,600,000 |
1,000 |
500 |
500 |
|
|
ups |
||||||
|
Production |
Number of |
250,500 |
3,000 |
2,000 |
700 |
|
|
orders |
production orders |
|||||
|
Shipping Cost |
Number of orders |
1,140,000 |
693 |
907 |
||
|
shipped |
||||||
|
$ 13,652,500 |
The selling price for the product is calculated at 140% of manufacturing cost.
Required:
In: Accounting