total cost of 1940s hotel $200k-800k furnishing near 1880s park and theater questions

Questions

The beginning inventory at Midnight Supplies and data on purchases and sales for a three month...

The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows:

Date

Transaction

Number of Units

Per Unit

Total

Jan.

1

Inventory

7,500

$ 75.00

$ 562,500

10

Purchase

22,500

85.00

1,912,500

28

Sale

11,250

150.00

1,687,500

30

Sale

3,750

150.00

562,500

Feb.

5

Sale

1,500

150.00

225,000

10

Purchase

54,000

87.50

4,725,000

16

Sale

27,000

160.00

4,320,000

28

Sale

25,500

160.00

4,080,000

Mar.

5

Purchase

45,000

89.50

4,027,500

14

Sale

30,000

160.00

4,800,000

25

Purchase

7,500

90.00

675,000

30

Sale

26,250

160.00

4,200,000

Instructions

1.

Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in

Exhibit 3

, using the first-in, first-out method.

2.

Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.

3.

Determine the gross profit from sales for the period.

4.

Determine the ending inventory cost as of March 31.

5.

Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

CHART OF ACCOUNTS

Midnight Supplies

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable
	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
	EXPENSES
510	Cost of Goods Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in

Exhibit 3

, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Date	Purchases			Cost of goods Sold			Inventory
Date	Quantity	Unit Cost	**Total Cost**	Quantity	Unit Cost	**Total Cost**	Quantity	Unit Cost	**Total Cost**
Jan. 1
10
10
28
28
30
Feb. 5
10
10
16
16
28
Mar. 5
5
14
14
25
25
30
30
31	Balances

2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

3. Determine the gross profit from sales for the period.

4. Determine the ending inventory cost as of March 31.

5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

Higher

Lower

In: Accounting

Topanga Group began operations early in 2021. Inventory purchase information for the quarter ended March 31,...

Topanga Group began operations early in 2021. Inventory purchase information for the quarter ended March 31, 2021, for Topanga’s only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system to report inventory and cost of goods sold.

Date of Purchase	Units	Unit Cost		Total Cost
Jan. 7	6,000	$	5.00		$	30,000
Feb. 16	15,000		6.00			90,000
March 22	19,000		7.00			133,000
Totals	40,000				$	253,000

Sales for the quarter, all at $8 per unit, totaled 24,000 units leaving 16,000 units on hand at the end of the quarter.

Required:
1. Calculate Topanga's cost of goods sold for the first quarter using:

FIFO
LIFO
Average cost

2. Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost.
3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio.

Req 1A
Req 1B
Req 1C
Req 2
Req 3

Calculate Topanga's cost of goods sold for the first quarter using FIFO.

FIFO:	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic FIFO			Ending Inventory - Periodic FIFO
FIFO:	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beginning Inventory
Purchases:
January 7
February 16
March 22
Total

Req 1B
Req 1C
Req 2
Req 3

Calculate Topanga's cost of goods sold for the first quarter using LIFO.

LIFO	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic LIFO			Ending Inventory - Periodic LIFO
LIFO	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beginning Inventory
Purchases:
January 7
February 16
March 22
Total

Calculate Topanga's cost of goods sold for the first quarter using average cost. (Round average cost per unit to 4 decimal places.)

Average Cost	Cost of Goods Available for Sale			Cost of Goods Sold - Average Cost			Ending Inventory - Average Cost
Average Cost	# of units	Unit Cost	Cost of Goods Available for Sale	# of units sold	Average Cost per Unit	Cost of Goods Sold	# of units in ending inventory	Average Cost per unit	Ending Inventory
Beginning Inventory
Purchases:
January 7
February 16
March 22
Total

Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost.

	Choose Numerator:	÷	Choose Denominator:	=	Gross Profit Ratio
		÷		=	Gross profit ratio
FIFO		÷		=
LIFO		÷		=
Average cost		÷		=

Comment on the relative effect of each of the three inventory methods on the gross profit ratio.

In situations when costs are rising, LIFO results in a

cost of goods sold and therefore, a

gross profit ratio than FIFO.

In: Accounting

1) Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide...

1)

Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X08R and P56L.

Activity Cost Pool	Activity Measure	Total Cost		Total Activity
Machining	Machine-hours	$	247,000	13,000	MHs
Machine setups	Number of setups	$	60,000	150	setups
Product design	Number of products	$	56,000	2	products
Order size	Direct labor-hours	$	260,000	10,000	DLHs

Activity Measure	Product X08R	Product P56L
Machine-hours	10,000	3,000
Number of setups	110	40
Number of products	1	1
Direct labor-hours	6,000	4,000

Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P56L?

A) $311,500

B) $373,800

C) $249,200

D) $418,000

2)

Ben Corporation manufactures two products: Product E05G and Product L64Y. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products E05G and L64Y.

Activity Cost Pool	Activity Measure	Total Cost		Total Activity
Machining	Machine-hours	$	285,000	15,000	MHs
Machine setups	Number of setups	$	180,000	300	setups
Product design	Number of products	$	64,000	2	products
Order size	Direct labor-hours	$	350,000	10,000	DLHs

Activity Measure	Product E05G	Product L64Y
Machine-hours	12,000	3,000
Number of setups	170	130
Number of products	1	1
Direct labor-hours	3,000	7,000

Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product E05G is closest to:

A) 27.87%

B) 19.00%

C) 30.00%

D) 50.00%

In: Accounting

Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation Assume a Jimmy John's restaurant has the...

Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation
Assume a Jimmy John's restaurant has the following information available regarding costs at representative levels of monthly sales:

	Monthly sales in units
	5,000	8,000	10,000
Cost of food sold	$ 10,000	$ 16,000	$ 20,000
Wages and fringe benefits	4,250	4,400	4,500
Fees paid delivery help	1,250	2,000	2,500
Rent on building	1,200	1,200	1,200
Depreciation on equipment	600	600	600
Utilities	500	560	600
Supplies (soap, floor wax, etc.)	150	180	200
Administrative costs	1,300	1,300	1,300
Total	$ 19,250	$ 26,240	$ 30,900

(a) Identify each cost as being variable, fixed, or mixed.

Cost of food sold:

Variable

Fixed

Mixed

Wages and fringe benefits:

Variable

Fixed

Mixed

Fees paid delivery help:

Variable

Fixed

Mixed

Rent on building:

Variable

Fixed

Mixed

Depreciation on equipment:

Variable

Fixed

Mixed

Utilities

Variable

Fixed

Mixed

Supplies (soap, floor wax, etc.):

Variable

Fixed

Mixed

Administrative costs:

Variable

Fixed

Mixed

(b) Use the high-low method to develop a schedule identifying the amount of each cost that is fixed per month or variable per unit. Total the amounts under each category to develop an equation for total monthly costs.

Round variable cost answers to two decimal places.

	Fixed Costs	Variable Costs
Cost of food sold	Answer	Answer	X
Wages and fringe benefits	Answer	Answer	X
Fees paid delivery help	Answer	Answer	X
Rent on building	Answer	Answer	X
Depreciation on equipment	Answer	Answer	X
Utilities	Answer	Answer	X
Supplies (soap, floor wax, etc.)	Answer	Answer	X
Administrative costs	Answer	Answer	X
Total costs equation	Answer	Answer	X

* where X = Unit sales

(c) Predict total costs for a monthly sales volume of 10,000 units.
$Answer

In: Accounting

Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,480, and a...

Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,480, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2017 was as follows.

Traditional Costing

Royale

Majestic

Direct materials

$640

$430

Direct labor ($20 per hour)

120

100

Manufacturing overhead ($39 per DLH)

234

195

Total per unit cost

$994

$725

In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $39 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,881,550 by the total direct labor hours (200,000) for the two models.

Under traditional costing, the gross profit on the models was Royale $486 ($1,480 – $994) and Majestic $545 ($1,270 – $725). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model.

Before finalizing its decision, management asks Schultz’s controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2017.

Activity

Cost Pools

Cost Drivers

Estimated

Overhead

Expected Use of

Cost Drivers

Activity-Based

Overhead Rate

Purchasing Number of orders $1,202,800 38,800 $31/order

Machine setups Number of setups 967,250 18,250 $53/setup

Machining Machine hours 4,899,500 119,500 $41/hour

Quality control Number of inspections 812,000 29,000 $28/inspection

The cost drivers used for each product were:

Cost Drivers

Royale

Majestic

Total

Purchase orders 16,800 22,000 38,800

Machine setups 5,750 12,500 18,250

Machine hours 74,400 45,100 119,500

Inspections 10,900 18,100 29,000

(a)Assign the total 2017 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit

In: Accounting

A. Product Costs using Activity Rates Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The...

A.

Product Costs using Activity Rates

Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:

Activity	Activity Rate
Fabrication	$22	per machine hour
Assembly	$8	per direct labor hour
Setup	$49	per setup
Inspecting	$29	per inspection
Production scheduling	$9	per production order
Purchasing	$6	per purchase order

The activity-base usage quantities and units produced for each product were as follows:

Activity Base	Elliptical Machines	Treadmill
Machine hours	1,824	1,076
Direct labor hours	380	148
Setups	49	15
Inspections	606	364
Production orders	71	14
Purchase orders	186	113
Units produced	267	179

Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent.

	**Total Activity Cost**	*Activity Cost* Per Unit**
Elliptical Machines	$	$
Treadmill	$	$

B.

High-Low Method for a Service Company

Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved.

	Transportation Costs	Gross-Ton Miles
January	$1,053,200	312,000
February	1,174,300	349,000
March	829,900	226,000
April	1,125,900	338,000
May	944,300	272,000
June	1,210,600	367,000

Determine the variable cost per gross-ton mile and the total fixed cost.

Variable cost (Round to two decimal places.)	$ per gross-ton mile
Total fixed cost	$

In: Accounting

Crane Company has beginning work in process inventory of $124000 and total manufacturing costs of $286000....

Crane Company has beginning work in process inventory of $124000 and total manufacturing costs of $286000. If cost of goods manufactured is $260000, what is the cost of the ending work in process inventory?

$170000.

$150000.

$98000.

$130000.

In: Accounting

1. Costs per Equivalent Unit The following information concerns production in the Baking Department for March....

1.

Costs per Equivalent Unit

The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.

ACCOUNT Work in Process—Baking Department					ACCOUNT NO.
Date		Item	Debit	Credit	Balance
Date		Item	Debit	Credit	Debit	Credit
Mar.	1	Bal., 9,000 units, 4/5 completed			21,600
	31	Direct materials, 162,000 units	291,600		313,200
	31	Direct labor	81,750		394,950
	31	Factory overhead	45,978		440,928
	31	Goods finished, 164,100 units		426,300	14,628
	31	Bal. ? units, 2/5 completed			14,628

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

1. Direct materials cost per equivalent unit	$
2. Conversion cost per equivalent unit	$
3. Cost of the beginning work in process completed during March	$
4. Cost of units started and completed during March	$
5. Cost of the ending work in process	$

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

2.

Cost of Production Report

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

Work in process, August 1, 900 pounds, 50% completed			$5,085*
	*Direct materials (900 X $4.7)	$4,230
	Conversion (900 X 50% X $1.9)	$855
		$5,085
Coffee beans added during August, 28,000 pounds			130,200
Conversion costs during August			55,220
Work in process, August 31, 1,400 pounds, 40% completed			?
Goods finished during August, 27,500 pounds			?

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

Direct materials and conversion equivalent units of production for August
Direct materials and conversion costs per equivalent unit for August
Cost of goods finished during August
Cost of work in process at August 31

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Units charged to production:
Inventory in process, August 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials (1)	Conversion (1)
Inventory in process, August 1
Started and completed in August
Transferred to finished goods in August
Inventory in process, August 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for August in Roasting Department		$	$
Total equivalent units
Cost per equivalent unit (2)		$	$
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			$
Costs incurred in August
Total costs accounted for by the Roasting Department			$
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance			$
To complete inventory in process, August 1	$	$
Cost of completed August 1 work in process			$
Started and completed in August
Transferred to finished goods in August (3)			$
Inventory in process, August 31 (4)
Total costs assigned by the Roasting Department			$

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$
Change in conversion cost per equivalent unit

In: Accounting

Calia has received the following demands for a product in 2020: Month 1 2 3

Calia has received the following demands for a product in 2020:

Month 1 2 3 4 5 6 7 8 9 10 11 12

Demand 300 700 800 900 3300 200 600 900 200 300 1000 800

Suppose ordering cost (OC) is $504 and holding cost (HC) of one unit of product in a year is $3. There is no shortage cost. Backordering is not allowed in this model.x

Question: Given that the total demand of the whole year is 10,000 products, suppose the company is going to use the EOQ model for the accumulated demand of one year (10,000). In other words, ignore the monthly demand. Compute:

Optimal order quantity (Q*)
Total cost
Frequency of orders
Time between orders

In: Operations Management

Use the transactions below to answer the following questions. Round to the nearest cent for per...

Use the transactions below to answer the following questions. Round to the nearest cent for per unit cost and the nearest dollar for the totals for COGS, Ending Inventory and Gross Profit.

Date		Quantity	Unit Cost	Sale Price
Mar 1	Beginning Inventory	30	$30
Mar 4	Purchase	40	$28
Mar 8	Sale	35		$54
Mar 15	Purchase	50	$26
Mar 20	Sale	42		$55

Using the LIFO Method for inventory costing calculate the following amounts for the month of March. Enter the amount without dollar signs, commas or decimals, i.e. 123 instead of $123 or 123.00.

Total Cost of Goods Sold for March:

Total Cost of Ending Inventory at the end of March:

In: Accounting