Question # 1

Big Dave’s Bowling Ball Factory has the following financial information:

There were no beginning or ending inventories. The selling cost is $3/unit.

Required:

1. Using the High-Low method Calculate the total cost formula in the form “Y = aX+b”
2. What are the total estimated manufacturing costs if production is forecasted at 580 units?

Big Dave’s Bowling Ball Factory has the following financial information:

Month Units Produced Manufacturing Costs (in$)

July 648 1,748

August 653 1,770

September 652 1,758

October 650 1,755

November 700 1,800

December 660 1,780

January 550 1,500

February 600 1,600

March 647 1,750

April 653 1,760

May 652 1,740

June 655 1,769

Total 7,720 20,730

There were no beginning or ending inventories. The selling cost is $3/unit.

Required:

A. Using the High-Low method Calculate the total cost formula in the form “Y = aX+b”

B. What are the total estimated manufacturing costs if production is forecasted at 580 units?

BALANCE SHEET ANALYSIS

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.3x
Days sales outstanding: 37.5 days^a
Inventory turnover ratio: 7x
Fixed assets turnover: 3.5x
Current ratio: 2.1x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35%
^aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.

BALANCE SHEET ANALYSIS

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.4x
Days sales outstanding: 31.5 daysa
Inventory turnover ratio: 7x
Fixed assets turnover: 3x
Current ratio: 2.2x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15%
aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x Days sales outstanding: 39.5 daysa Inventory turnover ratio: 7x Fixed assets turnover: 2.5x Current ratio: 2.4x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $ Current liabilities $ Accounts receivable Long-term debt 50,000 Inventories 7 Common stock Fixed assets 2.5 Retained earnings 50,000 Total assets $200,000 Total liabilities and equity $ Sales $ Cost of goods sold

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 31,200 Total fixed manufacturing overhead cost $ 156,000 Variable manufacturing overhead per machine-hour $ 3.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 665 Direct labor cost $ 1,330 If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

Coming Home Corporation uses a weighted-average process costing system to collect costs related to production. The following selected information relates to production for October:

All materials at Coming Home are added at the beginning of the production process.

What total amount of cost should be assigned to the units completed and transferred out during October?

Bettie Corporation uses a weighted-average process costing system to collect costs related to production. The following selected information relates to production for October:

All materials at Bettie are added at the beginning of the production process.

What total amount of cost should be assigned to the units completed and transferred out during October?

Multiple Choice

$677,500

$642,000

$691,900

$690,000