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):
| Molding | Fabrication | Total | |||||||
| Estimated total machine-hours used | 2,500 | 1,500 | 4,000 | ||||||
| Estimated total fixed manufacturing overhead | $ | 13,500 | $ | 17,100 | $ | 30,600 | |||
| Estimated variable manufacturing overhead per machine-hour | $ | 2.80 | $ | 3.60 | |||||
| Job P | Job Q | |||||
| Direct materials | $ | 27,000 | $ | 15,000 | ||
| Direct labor cost | $ | 32,200 | $ | 13,100 | ||
| Actual machine-hours used: | ||||||
| Molding | 3,100 | 2,200 | ||||
| Fabrication | 2,000 | 2,300 | ||||
| Total | 5,100 | 4,500 | ||||
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.
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
12. If Job P included 20 units, what was its unit product cost?
13. If Job Q included 30 units, what was its unit product cost?
14. 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?
15. What was Sweeten Company’s cost of goods sold for March?
In: Accounting
Assume Acme Corporation is a typical monopoly: Construct a graph illustrating Acme’s average and marginal cost curves and the demand curve facing it. Identify profit maximizing output and price, total revenues, total costs, and total profits. Assume the economy moves into a recession and the demand for Acme’s product falls. On the same graph, show the effect of the recession on equilibrium price, output, and profits. Your response should be one graph and an explanation for the graph.
In: Economics
The following figures are taken from Ethaniel Company's financial statements for the calendar years 200B and 200A:
| 200B | 200A | |
| Total Assets | $900,000 | $750,000 |
| Long-term debt (12% interest rate) | 125,000 | |
| 8% Preferred stocks, $100 par value | 225,000 | 225,000 |
| Total Stockholders' equity | 600,000 | 550,000 |
| Net Income (after tax of 30%) | 70,000 | 550,000 |
What is the return on average total assets?
In: Accounting
A firm applied factory overhead of $2 per unit to manufacture each inventory unit. They expected to make 10 units of inventory but made 12 units. The total cost of factory overhead was $21 for the period. The total factory overhead variance was
Select one:
a. $3 Favorable.
b. $1 Favorable.
c. $1 Unfavorable.
d. $3 Unfavorable
In: Accounting
What is a firm's total asset turnover, If its fixed assets are 120,000 current assets are 30,000 current liabilities are 44,000 sales were 200,000 and net income was 75,000.
In: Accounting
HW Measuring Total Output & Income
A B
GDP
($millions) 1000000 1050400 250000 288000
population
(millions) 20 20.2 50 60
GDP/pop
($thousands) 50,000__ 52,000__ 5,000
__ 4,800
__
Economy A is a developed economy while B is a developing economy.
Both are observed above at two points in
time.
1)Which economy is bigger? A
2)Which economy grew? (both, neither, A, B)
Both
3)Which economy added more output?
4)Which economy had greater percentage growth?
5)Which has more people? B
6)Which population grew? (both, neither, A, B) Both grew
but B grew more (50 to 60)
7)Which population had greater percentage growth?
8)Which had GDP per capita growth? (both, neither, A,
B) A
9)Which had more per capita? A
In: Economics
describe the total lung capacity columes
In: Anatomy and Physiology
Swain Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. The company’s beginning balance in Retained Earnings is $59,000. It sells one product for $176 per unit and it generated total sales during the period of $635,360 while incurring selling and administrative expenses of $55,100. Swain Company does not have any variable manufacturing overhead costs and its standard cost card for its only product is as follows:
| (1) Standard Quantity or Hours |
(2) Standard Price or Rate |
Standard Cost (1) x (2) |
|||||
| Direct materials | 8.0 | pounds | $ | 9 | per pound | $ | 72 |
| Direct labor | 2.0 | hours | $ | 12 | per hour | 24 | |
| Fixed manufacturing overhead | 2.0 | hours | $ | 20 | per hour | 40 | |
| Total standard cost per unit | $ | 136 | |||||
During the period, Swain recorded the following variances:
| Materials price variance | $ | 3,675 | U |
| Materials quantity variance | $ | 9,550 | F |
| Labor rate variance | $ | 4,175 | U |
| Labor efficiency variance | $ | 6,875 | U |
| Fixed overhead budget variance | $ | 1,575 | U |
| Fixed overhead volume variance | $ | 6,600 | F |
Required:
1. When Swain closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
2. Prepare an income statement for the year.
3. What is Swain’s ending balance in Retained Earnings?
Required 1.
When Swain closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
| The cost of goods sold will increase | by |
Required 2.
Swain Company
Income Statement
For the year
| Sales | ||
| Cost of goods sold at standard | ||
| total variance adjustments | ||
| cost of goods sold | ||
| gross margin | ||
| selling and administrative expenses | ||
| net operating income |
Required 3.
Ending balance in retained earnings:
In: Accounting
Five Card Draw manufactures and sells 23,000 units of Diamonds, which retails for $170, and 26,000 units of Clubs, which retails for $190. The direct materials cost is $25 per unit of Diamonds and $31 per unit of Clubs. The labor rate is $20 per hour, and Five Card Draw estimated 124,000 direct labor hours. It takes 2 direct labor hours to manufacture Diamonds and 3 hours for Clubs. The total estimated overhead is $496,000. Five Card Draw uses the traditional allocation method based on direct labor hours.
What is the gross profit per unit for Diamonds and Clubs?
| Gross Profit | ||
| Diamonds | $ | per unit |
| Clubs | $ | per unit |
What is the total gross profit for the year?
b. They use a traditional cost system and estimates next year's overhead will be $180,000, with the estimated cost driver of 180,000 direct labor hours. It manufactures three products and estimates the following costs:
| Small | Medium | Large | |
| Units | 31,000 | 10,000 | 3,000 |
| Direct Material Cost | $6 | $9 | $8 |
| Direct Labor Hours per Unit | 3 | 6 | 9 |
If the labor rate is $25 per hour, what is the per-unit cost of each product?
| Small | Medium | Large | |
| Cost per unit | $ | $ | $ |
c.
| Cost Pool | Cost Driver | Estimated Overhead |
Wholesale | Retail |
| Ordering | Number of Orders | $92,000 | 190,000 | 40,000 |
| Machine Setups | Number of Setups | 102,000 | 210,000 | 130,000 |
| Inspection | Number of Inspections | 74,000 | 60,000 | 14,000 |
What would be the predetermined rate for each cost pool? Round "Rate" answers to two decimal places.
| Cost Pool | Cost Driver | Estimated Overhead |
Total Activity |
Rate | |
| Ordering | Number of Orders | $92,000 | $ | per order | |
| Machine Setups | Number of Setups | 102,000 | $ | per setup | |
| Inspection | Number of Inspections | 74,000 | $ | per inspection | |
In: Accounting
Purchases$92,000
Materials inventory, March 1 6,000
Materials inventory, March 31 . 8,000 .
Direct labor 25,000
Factory overhead . 37,000
Work in process, March 1 . 22,000 .
Work in process, March 31 . 23,500 .
Finished goods inventory, March 1 . 21,000 .
Finished goods inventory, March 31 . 30,000
Sales . 257,000
Sales and administrative expenses . 79,000
Please enter an account name for every "$" that is underneath the title. The possible name options are
Beginning work in progress inventory, March 1
Cost of materials placed in production
Direct Labor
Ending work in process inventory, March 31
Sales
Beginning materials inventory
Factory overhead
Wages Expense
Cost of goods sold
Direct Labor
Gross Profit
Purchases
Utility expense
Cost of materials available for use
Finished goods inventory
Rent expense
Interest expense
Rent expense
Sales
Sales and administrative expenses
Less direct labor
Less ending materials inventory
Less factory overhead
Less sales
Less utilities expense
Beginning finished goods inventory
Cost of finished goods available for sale
Pluse cost of goods manufactured
Net income
Net loss
a. Prepare a schedule of cost of goods manufactured.
| Zoe Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Statement of Cost of Goods Manufactured | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
For Month Ended March 31
b. Prepare an income statement for the month ended March 31.
c. Prepare only the inventory section of the balance sheet.
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In: Accounting