Harootunian 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 80,000 Total fixed manufacturing overhead cost $ 312,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T629 was completed with the following characteristics: Number of units in the job 50 Total machine-hours 200 The estimated total manufacturing overhead is closest to what?

Required information

[The following information applies to the questions displayed below.]

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

5- What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)

6- If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

7- Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

8 8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Eire Products is a specialty lubricants company. The Lake Plant produces a single product in three departments: Filtering, Blending, and Packaging. Additional materials are added in the Blending Process when units are 50 to 55 percent complete with respect to conversion. Information for operations in June in the Blending process appear as follows.

Work in process on June 1 consisted of 9,000 barrels with the following costs.

During June, 116,000 barrels were transferred in from Filtering at a cost of $150,800. The following costs were added in Blending in June.

Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June, there were 10,000 barrels in work-in-process inventory. The units were 60 percent complete with respect to conversion costs. The Blending Department uses FIFO method of process costing.  

Required: Prepare a cost of production report for Blending department for June.

Feeders manufactures bird feeders for wild bird specialty stores. In? September,

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Feeders received an order from Wild? Birds, Inc., for

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platform bird feeders. The order from Wild? Birds, Inc., became Job Number 1102 at

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Feeders. A materials requisition for Job 1102 is presented to the right. In addition to the materials?requisition, the labor time records? (partial) for the week during which these feeders were made are presented. Other products were also being produced during that? week, so not all of the labor from that week belongs to Job 1102.??

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?(Click the icon to view the materials? requisition.)                                   

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?(Click the icon to view the labor time? records.)

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?(Click the icon to view the job cost? record.)Read the requirements

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Requirement 1. Calculate the total for the Materials Requisition form. Post the information? (cost and requisition? number) from the Materials Requisition form to the Job Cost Record in the appropriate boxes.

Complete the Materials Requisition form. In Requirement 3 you will post the information? (cost and requisition? number) from the Materials Requisition form to the Job Cost Record in the appropriate boxes.

Requirement 2. Complete the labor time records for each of the employees. Once the labor time record is? completed, post the information relevant to Job 1102 to the Job Cost Record for Job Cost 1102.

Complete the labor time records for each of the employees. In Requirement 3 you will post the information relevant to Job 1102 to the Job Cost Record for Job Cost 1102. Begin with employee Greg Henderson.

Now complete the labor time record for employee Andrew Peck.

Requirement 3. Manufacturing overhead has already been added to the Job Cost Record. Complete the Job Cost Record by calculating the total job cost and the cost per unit. Remember that this job consisted of

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feeders?(units).Post the direct material information? (cost and requisition? number) from the Materials Requisition form and direct labor information relevant to Job 1102 to the Job Cost Record for Job Cost 1102. Complete the Job Cost Record by calculating the total job cost and the cost per unit. Remember that this job consisted of

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feeders? (units). ?(Round the cost per unit to the nearest? cent.)View the completed labor time records

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Boston Corporation has two production departments, Assembly and Machining, and two service departments, Personnel and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of July, 2020 are as follows:

Required: (use ANOTHER sheet to show your work AND PLACE IT IN THE drop box FOR test #3) 10 points

• Compute the allocation of service department costs to producing departments for July 2020 using the direct method.

  Show the total costs allocated to each Producing Department AND Total Costs in each Producing Department after allocated Costs.

   a,  Allocated Costs to MACHINING ___________________ b. Allocated Cost to ASSEMBLY_________________________

c.  Total Costs to MACHINING________________________ d. Total Costs to ASSEMBLY____________________________

• Compute the allocation of service department costs to producing departments for July 2020 using the step method. Since the Personnel department provides the largest percentage of service to other service departments, it should be allocated first in the step method of allocation.  Show the total costs allocated to each Producing Department AND Total Costs in each Producing Department after allocated Costs.

e. Allocated Costs to MACHINING ___________________ f. Allocated Cost to ASSEMBLY_________________________

                       g.  Total Costs to MACHINING________________________ h. Total Costs to ASSEMBLY____________________________

Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown:

Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,500 units of T500 at a price of $39 per unit. The company’s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company’s two product lines is shown below:

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek’s ABC implementation team concluded that $55,000 and $102,000 of the company’s advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company’s manufacturing overhead to four activities as shown below:

Required:

1. Compute the product margins for the B300 and T500 under the company’s traditional costing system.

2. Compute the product margins for B300 and T500 under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin.

After considerable research, a winter products line has been developed. However, Silven’s president has decided to introduce only one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated.

The product selected (called Chap-Off) is a lip balm that will be sold in a lipstick-type tube. The product will be sold to wholesalers in boxes of 24 tubes for $8 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $90,000 charge for fixed manufacturing overhead will be absorbed by the product under the company’s absorption costing system.

Using the estimated sales and production of 100,000 boxes of Chap-Off, the Accounting Department has developed the following cost per box:

The costs above include costs for producing both the lip balm and the tube that contains it. As an alternative to making the tubes, Silven has approached a supplier to discuss the possibility of purchasing the tubes for Chap-Off. The purchase price of the empty tubes from the supplier would be $1.35 per box of 24 tubes. If Silven Industries accepts the purchase proposal, direct labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and direct materials costs would be reduced by 25%.

3. Instead of sales of 100,000 boxes, revised estimates show a sales volume of 120,000 boxes. At this new volume, additional equipment must be acquired to manufacture the tubes at an annual rental of $40,000. Assume that the outside supplier will not accept an order for less than 120,000 boxes.

a. Calculate the total relevant cost of making 120,000 boxes and total relevant cost of buying 120,000 boxes. (Do not round intermediate calculations.)

Total Cost Making

Total Cost Buying

Salespersons' Report and Analysis

Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows:

Required:

1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers.

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Calculate:
Column 1: Contribution margin = Total sales – (Variable cost of goods sold + Variable selling expenses)
Column 2: Variable cost of goods sold as a percent of sales = Variable cost of goods sold/Total sales
Column 3: Variable selling expenses as a percent of sales = Variable selling expenses/Total sales
Column 4: Contribution margin ratio = Contribution margin/Total sales

Learning Objective 4.

2. Which salesperson generated the highest contribution margin ratio for the year?

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Learning Objective 4.

3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons.

1. Rate of growth in sales for the current year compared with past years
2. Years of experience for salespersons
3. Size of sales territory
4. Actual sales compared with budgeted sales
5. All of the above

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Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows:

Required:

1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers.

Feedback

Calculate:

Column 1: Contribution margin = Total sales – (Variable cost of goods sold + Variable selling expenses)

Column 2: Variable cost of goods sold as a percent of sales = Variable cost of goods sold/Total sales

Column 3: Variable selling expenses as a percent of sales = Variable selling expenses/Total sales

Column 4: Contribution margin ratio = Contribution margin/Total sales

2. Which salesperson generated the highest contribution margin ratio for the year?

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2. The salesperson who generated the highest contribution margin ratio for the year, probably sells a favorable mix of product that has high manufacturing margins as a percent of sales.

3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons.

1. Rate of growth in sales for the current year compared with past years
2. Years of experience for salespersons
3. Size of sales territory
4. Actual sales compared with budgeted sales
5. All of the above