Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired individuals. Manufacturing is a one-step process where the bands are cut and sewn. This is the information related to this year’s production:
| Units to Account For | Units | Materials | Conversion |
| Beginning work in process inventory | 500 | 500 | 250 |
| Started | 20,500 | ||
| Total units to accounted for | 21,000 |
Ending inventory was 100% complete as to materials and 80% complete as to conversion, and the total materials cost is $58,380 and the total conversion cost is $36,516.
Using the weighted-average method, what are the unit costs if the company transferred out 18,000 units? If required, round final answers to two decimal places.
| Cost per unit |
|
| Materials | $ |
| Conversion | $ |
Using the weighted-average method, what is the value of the inventory transferred out and the value of the ending WIP inventory?
| Inventory transferred out | $ |
| Ending WIP inventory | $ |
In: Accounting
Cost of Units Transferred Out and Ending Work in Process
The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $1.90 and $1.40, respectively. The equivalent units to be assigned costs are as follows:
| Equivalent Units | ||||
| Direct Materials | Conversion | |||
| Inventory in process, October 1 | 0 | 1,900 | ||
| Started and completed during October | 32,000 | 32,000 | ||
| Transferred out of Rolling (completed) | 32,000 | 33,900 | ||
| Inventory in process, October 31 | 4,000 | 2,400 | ||
| Total units to be assigned costs | 36,000 | 36,300 | ||
The beginning work in process inventory on October 1 had a cost of $1,200. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.
| Completed and transferred-out production | $ |
| Inventory in process, October 31 | $ |
| Total costs assigned by the Rolling Department | $ |
In: Accounting
We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows:
| Year | Unit Sales |
| 1 | 99,500 |
| 2 | 111,500 |
| 3 | 134,500 |
| 4 | 140,500 |
| 5 | 93,500 |
The new system will be priced to sell at $460 each.
The cockroach eradicator project will require $1,900,000 in net working capital to start, and total net working capital will rise to 15% of the change in sales. The variable cost per unit is $330, and total fixed costs are $2,200,000 per year. The equipment necessary to begin production will cost a total of $21 million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost.
The relevant tax rate is 35%, and the required return is 14%. Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dol
In: Finance
Factory Overhead Cost Budget
Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:
| Advertising expenses | $277,970 |
| Manufacturing supplies | 15,230 |
| Power and light | 45,440 |
| Sales commissions | 310,790 |
| Factory insurance | 26,460 |
| Production supervisor wages | 133,640 |
| Production control wages | 34,750 |
| Executive officer salaries | 283,320 |
| Materials management wages | 38,220 |
| Factory depreciation | 21,650 |
Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
| Sweet Tooth Candy Company | ||
| Factory Overhead Cost Budget | ||
| For the Month Ending August 31 | ||
| Variable factory overhead costs: | ||
| $ | ||
| Total variable factory overhead costs | $ | |
| Fixed factory overhead costs: | ||
| $ | ||
| Total fixed factory overhead costs | ||
| Total factory overhead costs | $ | |
In: Accounting
HalimSdnBhd uses a standard costing system. The standard cost card for one product is shown below:
Direct Material 4 kg at RM5 per kg RM 20
Direct Labor 2 hours at RM8 per hour 16
Variable Overhead 2 hours at RM 7.5 per hour15
Total Product Cost 51
The budgeted output and sales was 1,000 units. Actual output for the period was 1,300 units . Actual cost was as follows:
Direct Material: 5,000 kg, costing 22,750
Direct Labor: 2,860 hours, costing 21,450
Required:
Compute the following variances, indicating whether each variance is favorable or unfavorable.
Total of direct- material variances.
Direct-material price variance.
Direct-material usage variance.
Total of direct-labor variances.
Direct-labor rate variance.
Direct-labor efficiency variance.
In: Accounting
Factory Overhead Cost Budget
Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:
| Advertising expenses | $282,920 |
| Manufacturing supplies | 15,510 |
| Power and light | 46,250 |
| Sales commissions | 312,690 |
| Factory insurance | 26,930 |
| Production supervisor wages | 136,020 |
| Production control wages | 35,370 |
| Executive officer salaries | 288,360 |
| Materials management wages | 38,890 |
| Factory depreciation | 22,040 |
Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
| Sweet Tooth Candy Company | ||
| Factory Overhead Cost Budget | ||
| For the Month Ending August 31 | ||
| Variable factory overhead costs: | ||
| $ | ||
| Total variable factory overhead costs | $ | |
| Fixed factory overhead costs: | ||
| $ | ||
| Total fixed factory overhead costs | ||
| Total factory overhead costs | $ | |
In: Accounting
| Loring Company incured the following costs last year: | |||
| Direct Materials | $216,000 | ||
| Factory Rent | 24,000 | ||
| Direct Labor | 120,000 | ||
| Factory Utilities | 6,300 | ||
| Supervision in the factory | 50,000 | ||
| Indirect labor in the factory | 30,000 | ||
| Depreciation on factory equipment | 9,000 | ||
| Sales commissions | 27,000 | ||
| Sales salaries | 65,000 | ||
| Advertising | 37,000 | ||
| Depreciation on the headquarters building | 10,000 | ||
| Salary of the corporate receptionist | 30,000 | ||
| Other administrative costs | 175,000 | ||
| Salary of the factory receptionist | 28,000 | ||
| Required: | |||
| 1. Classify each of the costs using the following table format in excel spread sheet. Be sure to total the amount in each column. | |||
| Example: Direct materials, $216,000. | |||
| 2. What was the total product cost for last year? | |||
| 3. What was the total period cost for last year? | |||
| 4. If 30,000 units were produced last year, what was the unit product cost? | |||
In: Accounting
Single plantwide factory overhead rate
Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $103,020. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:
| Budgeted Production Volume | Direct Labor Hours Per Unit | ||||
| Flutes | 2,000 | units | 0.4 | ||
| Clarinets | 500 | 1.6 | |||
| Oboes | 1,300 | 1.1 | |||
If required, round all per unit answers to the nearest cent.
a. Determine the single plantwide overhead
rate.
$ per direct labor hour
b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products.
| Total Factory Overhead Cost |
Per Unit Factory Overhead Cost |
|
| Flutes | $ | $ |
| Clarinets | ||
| Oboes | ||
| Total | $ |
In: Accounting
Problem 7-11
Balance Sheet Analysis
Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data:
Total assets turnover: 1.5
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales =
24%
Total liabilities-to-assets ratio: 35%
Quick ratio: 0.95
Days sales outstanding (based on 365-day year): 31.5 days
Inventory turnover ratio: 5.0
Round your answers to the nearest whole dollar.
| Partial Income | Statement Information |
| Sales | $ |
| Cost of goods sold | $ |
Balance Sheet
| Cash | $ | Accounts payable | $ |
| Accounts receivable | $ | Long-term debt | $ 50,000 |
| Inventories | $ | Common stock | $ |
| Fixed assets | $ | Retained earnings | $ 100,000 |
| Total assets | $ 400,000 | Total liabilities and equity | $ |
In: Finance
Complete the balance sheet and sales information in the table that follows for Mendy Industries using the following financial data:
Total assets turnover: 2
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales =
21%
Total liabilities-to-assets ratio: 45%
Quick ratio: 1.15
Days sales outstanding (based on 365-day year): 31.5 days
Inventory turnover ratio: 6.0
Do not round intermediate calculations. Round your answers to the nearest whole dollar.
| Partial Income | Statement Information |
| Sales | $ |
| Cost of goods sold | $ |
Balance Sheet
| Cash | $ | Accounts payable | $ |
| Accounts receivable | Long-term debt | 50,000 | |
| Inventories | Common stock | ||
| Fixed assets | Retained earnings | 100,000 | |
| Total assets | $ 400,000 | Total liabilities and equity | $ |
In: Accounting