Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.

Other information is as follows:

(a)

Determine the unit product cost for Tablets using the traditional costing system.

(b)

Determine the unit product cost for Tablets using the activity-based costing system.

Read the Case Study: Indirect Cost Analysis of Medical Equipment Manufacturing Costs at the end of Chapter 15 in your text. Study the information provided in the Case Study.

This project entails the following:

Use traditional indirect cost allocations to verify Arnie’s cost and price estimates. Support your conclusions with calculations.

Use any method you prefer to estimate the indirect cost allocation and total cost for each model. Support your estimations with calculations.

If the prices and number of units sold are the same next year (750,000 standard and 150,000 premium), and all other costs remain constant, determine the profit from PS6 using the traditional indirect cost allocation method.

What price should Health Care Services charge next year based on a 10% markup over cost? What is the total profit from PS6 predicted to be if sales hold steady?

Comment on the production manager’s prediction of indirect costs and the two reasons given to not produce the premium version of PS6. Is this valid? Why or why not?

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 Solve 2 Question must send .. thank you very much

Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 45 $ 10 July 13 Purchase 225 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 170 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under LIFO. Assume a periodic inventory system is used.

Ace Company manufactures two products, X and Y. The following information is given for X only:

   X   

Annual production units                                  2,000 units                  

Direct material cost per unit of product              $15                             

Direct labor cost per unit of product                     25                            

The company uses activity-based costing. And its overhead costs are traced to two activity cost pools. The following data are given:

On March 1, 2018, Beldon Corporation purchased land as a factory site for $72,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2018. Costs incurred during this period are listed below:

Salvaged materials resulting from the demolition of the old building were sold for $3,200.

Required:
Determine the amounts that Beldon should capitalize as the cost of the land and the new building.

Determine the amounts that Beldon should capitalize as the cost of the land. (Amounts to be deducted should be indicated with a minus sign.)

Determine the amounts that Beldon should capitalize as the cost of the new building.

Your company is considering an expansion and preparing budgets with and without the expanded activities. You have been asked to predict the cost of shipping at several different activity levels. You believe pounds shipped is a good cost driver and you have gathered historical data from the last 6 accounting periods, as summarized in the following table: Total cost of shipping Number of pounds shipped Period 1 93740 25000 Period 2 75040 19500 Period 3 82350 22400 Period 4 82260 21300 Period 5 76800 19900 Period 6 89700 23800 You choose to use the High-Low method of estimating the fixed and variable components of a mixed cost. 1. What is the variable cost per pound? (Round to the nearest penny)

2. What is the fixed cost per period for shipping? (Round to the nearest dollar)

3. Use your results to predict the total cost of shipping in period 7 if 50000 pounds are expected.

Bob's lawn mowing service is a profit maximizing competitive firm. The following questions relate to Bob's short run and long run decisions regarding shutting down and exiting. For each question, determine whether Bob should shut down or operate in the short run and exit or remain in lawn mowing business in the long run.

a. Suppose that Bob is payed $28 per lawn and he mows 12 lawns per day. His total cost each day is $400, of which $50 is a fixed cost. Should Bob shut down or operate in the short run? Should Bob exit or remain in business in the long run?

b. Suppose Bob is payed $30 per lawn and he mows 12 lawns per day. His total cost each day is $400, $50 of which is a fixed cost. Should Bob shut down or operate in the short run? Should Bob exit or remain in business in the long run?

c. Suppose Bob is payed $35 per lawn and he mows 12 lawns per day. His total cost each day is $400, $50 of which is a fixed cost. Should Bob shut down or operate in the short run? Should Bob exit or remain in business in the long run?

Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit. Of these, 48 were sold for $100,000 each and two remain in finished goods inventory. In addition, the company had six partially completed units in its factory at year-end. Total costs for the year (summarized alphabetically) were as follows.

Required:

a. Compute the total manufacturing costs charged to work in process for the current year.

b. Compute the cost of finished goods manufactured for the current year.

c. Compute the cost of goods sold for the current year.

d. Compute the gross profit on sales for the current year.

e. Compute the ending inventories of (1) work in process and (2) finished goods for the current year.

a. Total manufacturing cost:

b. cost of finsihed goods manufactured:

c. cost of goods sold

d. gross profit on sales:

e-1. ending inventory of work in process:

e-2. ending inventory of finieshed goods: