Surf Deals had the following inventory (surfboards) information available for June and records their inventory using the periodic inventory method.
Date Transaction Units Unit Cost
June 1 Beginning inventory 100 $200
June 2 Purchase 100 $220
June 5 Sale @ $350 per unit (75)
June 18 Purchase 200 $225
June 25 Purchase 100 $230
June 29 Sale @ $360 per unit (200)
Inventory: ___________ Cost of Goods Sold: ___________
Inventory: ___________ Cost of Goods Sold: ___________
In: Accounting
GGG uses a perpetual inventory system. The company’s beginning inventory of a particular product and its purchases during the months of January and February were as follows:
Quantity Unit Cost
Beginning inventory (Jan. 1)................................................. 50 $6.00
Purchase (Jan. 10)................................................................. 25 7.00
Purchase (Jan. 22)................................................................. 25 8.52
Purchase (Feb. 9)………………………………………… 65 11.00
Total ...............................................................................
On February 25, GGG sells 65 units of this product. The other units remain in inventory at February 25.
a Determine the cost of goods sold using each of the following flow assumption. SHOW ALL WORK!
(1) LIFO $_____________
(2) FIFO $_____________
(3) Average cost $_____________
b Determine the cost of the units in ending inventory at February 25 using each of the following flow assumptions. SHOW ALL WORK!
(1) LIFO $_____________
(2) FIFO $_____________
(3) Average cost $_____________
c. Assume that the units are sold to customers at a price of $17 per unit. Compute the total sales revenue to be recognized upon sale of the product?
In: Accounting
1. a) Suppose a manufacturing company can use either Humans or Robots to produce output (Q) (consider Humans and Robots to be substitutes). The Marginal Product of Humans is 10 units of output per hour and the Marginal Product of Robots is 32.5 units of output per hour. Humans cost $7 per hour and Robots cost $20 per hour. What is the firm's Total Cost Function?
b) Suppose the firm is producing 50 units of output. Using a graph, draw the firm's isoquant for Q = 50. Also, on the same graph, draw the isocost line associated with the total cost of producing Q = 50.
Your graph should be accurate and carefully labeled. Please put the number of pounds of hours of Humans (H) on the vertical axis, and the number of hours of Robots (R) on the horizontal axis. Make sure to clearly indicate the cost-minimizing combination of Humans and Robots that the firm should use to make 50 units of output, and to clearly label both the isocost line and the isoquant.
In: Economics
Please show work:
Lean’N’Mean Manufacturing uses just-in-time inventory techniques to reduce their carrying costs. Despite having a low level of working capital, they experience significant sales and production levels. Lean’N’Mean reported the following information at year-end:
| Beginning Materials Inventory | $ 2,000 | Indirect Materials Used | $ 8,000 |
| Ending Materials Inventory | 2,400 | Direct Labor | 288,000 |
| Beginning Work in Process | 16,000 | Indirect Labor | 390,000 |
| Ending Work in Process | 8,000 | Factory Depreciation | 20,000 |
| Beginning Finished Goods Inventory | 4,800 | Factory Maintenance | 12,000 |
| Ending Finished Goods Inventory | 3,000 | Factory Utilities | 32,000 |
| Cost of Materials Purchased | 320,000 | Selling & Administrative Expense | 656,000 |
Instructions: Compute each of the following amounts, showing all work for partial credit
1.Direct material used
2. Total manufacturing overhead
3. Total manufacturing costs
4. Cost of goods manufactured
5. Cost of goods sold
6. Prime cost
7. Conversion cost
In: Accounting
8.
Smythe Co. makes furniture. The following data are taken from
its production plans for the year.
| Direct labor costs | $ | 5,490,000 | |
| Hazardous waste disposal costs | 615,000 | ||
| Chairs | Tables | |||
| Expected production | 214,000 | units | 19,000 | units |
| Direct labor hours required | 272,000 | DLH | 15,400 | DLH |
| Hazardous waste disposed | 700 | pounds | 200 | pounds |
Required:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
Question 1
Assume the following information pertaining to Cub Company:
| Prime costs | $ | 195,500 | |
| Conversion costs | 222,000 | ||
| Direct materials used | 85,350 | ||
| Beginning work in process | 98,450 | ||
| Ending work in process | 81,200 | ||
Total manufacturing cost is calculated to be:
Multiple Choice
$307,350.
$26,500.
$110,150.
$332,150.
$111,850.
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
| Sales Revenue | $ | 62,500 | |
| Finished Goods Inventory, Beginning | 10,500 | ||
| Finished Goods Inventory, Ending | 7,200 | ||
| Cost of Goods Sold | ? | ||
| Gross Margin | 28,900 | ||
| Direct Materials Used | 10,900 | ||
| Selling and Administrative Expense | ? | ||
| Operating Income | 15,200 | ||
| Work-in-Process Inventory, Beginning | ? | ||
| Work-in-Process Inventory, Ending | 5,900 | ||
| Direct Labor Used | 9,450 | ||
| Factory Overhead | 12,600 | ||
| Total Manufacturing Cost | ? | ||
| Cost of Goods Manufactured | ? | ||
Cost of goods manufactured is calculated to be:
Multiple Choice
$32,300.
$30,300.
$33,600.
$38,300.
$27,300.
In: Accounting
Manufacturing cost data for Orlando Company, which uses a job
order cost system, are presented below.
Indicate the missing amount for each letter. Assume that in all
cases manufacturing overhead is applied on the basis of direct
labor cost and the rate is the same. (Round overhead
rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal
places, e.g. 5,275.)
|
Case A |
Case B |
||||||
|---|---|---|---|---|---|---|---|
| Direct materials used | $enter a dollar amount | (a) | $93,900 | ||||
| Direct labor | 52,000 | 147,700 | |||||
| Manufacturing overhead applied | 33,800 | enter a dollar amount | (d) | ||||
| Total manufacturing costs | 146,650 | enter a dollar amount | (e) | ||||
| Work in process 1/1/20 | enter a dollar amount | (b) | 19,500 | ||||
| Total cost of work in process | 203,200 | enter a dollar amount | (f) | ||||
| Work in process 12/31/20 | enter a dollar amount | (c) | 16,700 | ||||
| Cost of goods manufactured | 194,300 | enter a dollar amount | (g) | ||||
In: Accounting
Schmutz Auto Wash provides car washes. Its production function
is ? = 2?1/2(? - 1)1/2
where ? is cars washed per day, ? is daily hours of labor input,
and ? is daily usage of capital inputs. The price of a unit of
capital input is $48. The price of a unit of labor input is $16. In
the short run, Schmutz has four units of capital input installed
(so ? = 4).
a). Find Schmutz’s short run daily total cost function, short run daily variable cost function, and short run daily fixed costs.
b). Find Schmutz’s short run marginal cost function, short run average variable cost function, and short run total cost function.
c). Suppose that the market for car washes is perfectly competitive and the going market price of a car wash is ?. Find Schmutz’s short run daily supply function, including its shutdown price.
d). Find Schmutz’s profit in the short run if ? = 40.
In: Economics
|
The following cost data relate to the manufacturing activities of Black Company during the just-completed year: |
| Manufacturing overhead costs: | |||
| Property taxes, factory | $ | 3,900 | |
| Utilities, factory | 6,350 | ||
| Indirect labour | 11,800 | ||
| Depreciation, factory | 26,250 | ||
| Insurance, factory | 7,800 | ||
| Total actual manufacturing overhead costs | $ | 56,100 | |
| Other costs incurred: | |||
| Purchases of raw materials. | $ | 36,500 | |
| Direct labour cost | $ | 46,300 | |
| Inventories: | |||
| Raw materials, beginning | $ | 9,800 | |
| Raw materials, ending | $ | 7,900 | |
| Work in process, beginning | $ | 7,350 | |
| Work in process, ending | $ | 9,300 | |
|
The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine-hour; a total of 12,000 machine-hours were recorded for the year. All raw materials ultimately become direct materials—none are classified as indirect materials. |
| Required: | |
| 1. |
Compute the amount of underapplied or overapplied overhead cost for the year. |
| 2. |
Prepare a schedule of cost of goods manufactured for the year. |
In: Accounting
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:
| Inputs | (1) Standard Quantity or Hours | (2) Standard Price or Rate |
Standard Cost (1) × (2) |
||||
| Direct materials | 2.40 | pounds | $ | 16.10 | per pound | $ | 38.64 |
| Direct labor | 1.00 | hours | $ | 15.70 | per hour | $ | 15.70 |
| Variable manufacturing overhead | 1.00 | hours | $ | 9.50 | per hour | $ | 9.50 |
| Total standard cost per unit | $ | 63.84 | |||||
| Total | Variances Reported | |||||||
| Standard Cost* |
Price or Rate |
Quantity or Efficiency |
||||||
| Direct materials | $ | 734,160 | $ | 13,804 | F | $ | 32,200 | U |
| Direct labor | $ | 298,300 | $ | 4,000 | U | $ | 15,700 | U |
| Variable manufacturing overhead | $ | 180,500 | $ | 4,500 | F | $ | ?† | U |
*Applied to Work in Process during the period.
The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored.
In: Accounting