Cost of Goods Manufactured and Sold

Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year:

Required:

1. Prepare a cost of goods manufactured statement.

2. Prepare a cost of goods sold statement.

PLEASE USING THIS INFORMATION FILL OUT ALL COLUMNS COMPLETELY IN THE TABLE MARKED AS (*******)

MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,380 cell phones are as follows:

MyPhone desires a profit equal to a 16% rate of return on invested assets of $600,700.

a. Determine the amount of desired profit from the production and sale of 5,380 cell phones.
$

b. Determine the product cost per unit for the production of 5,380 of cell phones. Round your answer to the nearest whole dollar.
$ per unit

c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.
%

d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,380 cell phones are as follows:

MyPhone desires a profit equal to a 16% rate of return on invested assets of $600,700.

a. Determine the amount of desired profit from the production and sale of 5,380 cell phones.
$

b. Determine the product cost per unit for the production of 5,380 of cell phones. Round your answer to the nearest whole dollar.
$ per unit

c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.
%

d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

Structuring a Make-or-Buy Problem Fresh Foods, a large restaurant chain, needs to determine if it would be cheaper to produce 5,000 units of its main food ingredient for use in its restaurants or to purchase them from an outside supplier for $12 each. Cost information on internal production includes the following: Total Cost Unit Cost Direct materials $25,000 $ 5.00 Direct labor 15,000 3.00 Variable manufacturing overhead 7,500 1.50 Variable marketing overhead 10,000 2.00 Fixed plant overhead 30,000 6.00 Total $87,500 $17.50 Fixed overhead will continue whether the ingredient is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price. Required: 1. What are the alternatives for Fresh Foods? 2. List the relevant cost(s) of internal production and of external purchase. 3. Which alternative is more cost effective? By how much? $ 4. Now assume that 20% of the fixed overhead can be avoided if the ingredient is purchased externally. Which alternative is more cost effective? By how much? $

The following data are given for product DRIM69

Budgeted output for the year:        9800 units

Standard details for one unit:

Direct materials:                               40 square metres at K5.30 per square metre

Direct wages:

Bonding department                                   48 hours at K12.50 per hour

Finishing department                                  30 hours at K7.60 per hour

Budgeted costs and hours per annum:

Variable overhead:                                      (K)                                           (hours)

Bonding department                                   375000                                   500000

Finishing department                                  150000                                   300000

Fixed overhead:                                           (K)                                          

Production                                                    392000

Selling and distribution                              196000

Required:

A. Prepare a standard cost sheet for one unit and enter on the standard cost sheet the costs to show sub-totals for:

(a) prime cost                                                                                                [4 Marks]

(b) variable production cost                                                                        [4 Marks]

(c) total production cost                                                                               [4 Marks]

(d) total cost                                                                                                   [4 Marks]

B. Calculate the selling price per unit allowing for a profit of 15 per cent of the selling price.                                                                                                                  [5 Marks]

C. Calculate the amount of the profit per unit.                                       [4 Marks]

Pale Blue Eyes, Inc., manufactures contact lenses, and accounts for production using a FIFO process costing system. The main material involved is glass, and the production process is mainly done in the grinding process center, hence all materials are added at the beginning of the production process and one work in process center is used, Grinding. Selected data regarding the grinding department during the month of September are as follows:

Production data:

Total % complete as to DM CC

Units in process, September 1^st,      12,000                                                       100              65

Units started into production          24,500                                           

Units in process September 30^th,    11,500                                                       100               25

Cost data:

                                                                                DM Cost                        Conv. Cost

Work in process, September 1^st                             $ 26,500.                        $ 57,200.

Added during September                                           55,615.                          147,752.

Compute the number of units transferred out of the grinding department, the equivalent units of production for September for both DM and CC, the cost per equivalent unit for both DM and CC, and the total unit product cost. What is the cost of goods transferred out, and ending inventory?   Show appropriate calculations to justify your response.          

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,800 units of product were as follows:

Each unit requires 0.25 hour of direct labor.

c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Required:

1. Assume simple costing system used machine hours only as the single cost allocation base.

   1. Compute a single overhead rate

   2. Compute the amount of overheads allocated to Budget and Deluxe.

   3. Compute the amount of overhead per unit allocated to Budget and Deluxe.

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $14,570. The booth will be open 31 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $176 per package. She will continue to sell the existing product, EZRecords, which costs $103 per package. Ms. Ortega believes that the salesperson will spend approximately 21 hours selling EZRecords and 10 hours marketing ProOffice.

Required

a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 72 units of EZRecords and 41 units of ProOffice.

b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 198 units of EZRecords and 100 units of ProOffice.

(For all requirements, round "Cost per unit" to 2 decimal places.)