Snoopy Company uses a job order costing system. The following inventory balances are available on January 1, 2020:

Raw Materials $22,400

Work in Process $92,500

Finished Goods $145,600

The Work in Process Inventory consisted of 3 jobs: #401 $33,800; #402 $21,400; and #403 $37,300

The Finished Goods Inventory consisted of 2 jobs: #399 $76,200 and #400 $69,400

Snoopy uses a normal costing system with an overhead rate based on machine hours. The following budgeted information was available for the year 2020: Factory overhead costs $245,000 and machine hours 35,000.

During 2020, the following transactions took place:

1. Raw materials costing $120,000 were purchased on account.
2. Total factory labor charges accrued were $257,400.
3. A summary of material requisitions and time tickets appeared as follows:

4. Other factory overhead costs include $42,500 depreciation on factory equipment, $8,300 of expired factory insurance, $9,500 of accrued property taxes, and $46,000 of miscellaneous factory costs paid in cash.

5. Job Nos. 401, 402, 403, 405, and 407 were completed.

6. Job Nos. 399, 400, 401, 403, and 407 were sold for $650,000 cash.

Required:

A. Complete the cost flow diagram and job order cost sheets in the attached work paper. Be sure to enter the beginning balances of the inventory accounts and be sure to compute and SHOW the ending balances of the accounts.

B. Verify the ending work in process and ending finished goods inventory balances by reconciling to the job cost sheets and SHOW this on your sheet.

Using the information from Question 6, prepare the required journal entries to record the transactions below:

Required:

Using the information from Question 6, prepare a manufacturing statement and a partial income statement.

All of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,882,000 of fixed manufacturing overhead for an estimated allocation base of 288,200 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory.The company’s beginning balance sheet is as follows:

The company’s standard cost card for its only product is as follows:

During the year Wallis completed the following transactions:

Purchased (with cash) 231,000 pounds of raw material at a price of $29.70 per pound.

Added 215,500 pounds of raw material to work in process to produce 95,200 units.

Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 245,400 hours at an average cost of $16.00 per hour to manufacture 95,200 units.

Applied fixed overhead to work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed to manufacture 95,200 units. Actual fixed overhead costs for the year were $2,741,000. Of this total, $1,342,000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1,399,000 related to depreciation of equipment.

Transferred 95,200 units from work in process to finished goods.

Sold (for cash) 92,200 units to customers at a price of $170 per unit.

Transferred the standard cost associated with the 92,200 units sold from finished goods to cost of goods sold.

Paid $2,121,000 of selling and administrative expenses. Closed all standard cost variances to cost of goods sold.

1. Compute all direct materials, direct labor, and fixed overhead variances for the year.

2. Record transactions a through i for Wallis Company.

3. Compute the ending balances for Wallis Company’s balance sheet.

4. Prepare Wallis Company’s income statement for the year.

Record transactions a through i for Wallis Company.

Wallis Company Income Statement For the Year Ended 12/31/XX (dollars in thousands)

Sales

Cost of goods sold at standard

Total variance adjustments

Cost of goods sold

Gross margin   

Selling and administrative expenses

Net operating income

a) Hank Co. recently opened a new state of the art, high tech manufacturing plant, and management made the decision to install a just in time production system. How would labor costs, overhead costs and work in process inventory levels at this plant respectively compare with those at other Fulton facilities?

a. lower, higher, higher b. lower, lower, lower   c. lower, higher, lower   d. higher, higher, higher   e. higher, lower, higher

b) Crystal Industries began June with a finished good inventory of $13,000. The finished goods inventory at the end of June was $10,000 and the the cost of goods sold during the month was $20,000. The cost of goods manufactured during June was:

a. $17,000 b. $20,000 c. 27,000 d. $7,000

c) In July, Candle Co. produced 4,000 bags at a total cost of $110,000. In June, it produced 2,500 bags at a total cost of $87,500. In May, it produced 2,500 bags at a total cost of $89,000. Using the High Low method, what was the unit variable cost of producing a bag?

d) Andy Co. sells a single product at $20 per unit. The firm's most recent income statement revealed unit sales of 100,000, variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in selling price will boost unit sales volume by 20% the company will experience:

a. $400,000 drop in profitability b. $80,000 drop in profitability c. $240,000 drop in profitability d. no change in profit

e) Candy Inc. recently sold goods that cost $35,000 for $45,000 cash. The journal entries to record this transaction would include:

a. debit to accounts receivable for $45,000 b. credit to sales revenue for $45,000 c. debit for finished goods inventory for $35,000

d. credit to work in process inventory for $35,000 e. credit cost of goods sold for $35,000

f) At a production and sales level of 3,000 units, Candle Co. incurred $60,000 of total fixed costs and $36,000 of total variable costs. When 4,000 units of product are produced and sold the company's cost per unit is:

a. $32 b. $24 c. $27 d. $29

g) Hank Co reported the following data for the year just ended: sales revenue, $790,000; cost of goods sold, $450,000; cost of goods manufactured, $380,000; and selling and administrative expenses, $125,000. National's operating income (or loss) would be $___?

h) Gary, Inc applies manufacturing overhead at the rate of $40 per machine hour. Budgeted machine hours for the current period were anticipated to be 70,000; however a lengthy strike resulted in actual machine hours being worked of only 55,000. Budgeted and actual manufacturing overhead for the year were $2,800,000 and $2,150,000. How much was the company 's year end overhead mis-applied (under or over applied)?

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

Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:

Required:

1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below:

Med Max gathered the data below for two of the many hospitals that it serves—City General and County General:

Required:

1. Compute the activity rate for each activity cost pool.

2. Compute the total activity costs that would be assigned to City General and County General.

Activity-Based Costing, Reducing the Number of Drivers and Equal Accuracy

Reducir, Inc., produces two different types of hydraulic cylinders. Reducir produces a major subassembly for the cylinders in the Cutting and Welding Department. Other parts and the subassembly are then assembled in the Assembly Department. The activities, expected costs, and drivers associated with these two manufacturing processes are given below.

Other overhead activities, their costs, and drivers are listed below.

Other production information concerning the two hydraulic cylinders is also provided:

Required:

1. Using a plantwide rate based on machine hours, calculate the total overhead cost assigned to each product and the unit overhead cost. If required, round your unit overhead cost answers to the nearest cent.

2. Using activity rates, calculate the total overhead cost assigned to each product and the unit overhead cost. If required, round interim calculations to the nearest cent, and final answers to the nearest dollar.

3. Calculate the global consumption ratios. Round your answers to two decimal places.

4. Calculate the consumption ratios for welding and materials handling (Assembly). Round your answers to two decimal places.

5. Calculate the consumption ratios for inspection and engineering. Round your answers to two decimal places.

1.

From the following mutual fund quotation, complete the blanks: (Negative amounts should be indicated by a minus sign. Round the "NAV" and the "NAV change" to the nearest cent and the "Total return" to the nearest hundredth percent.)

2.

Calculate the total annual interest, total cost, and current yield for the bond. (Round the "Current yield" to the nearest tenth percent and other answers to the nearest whole dollar.)

3.

From the following information calculate the net asset values. (Round your answers to the nearest cent.)

4.

Calculate the missing value. (Round your answer to the nearest cent.)

1. The short-run supply curve for a firm in a perfectly competitive industry is:

1. The short-run marginal cost curve that is above minimum average variable cost (which takes into account the fact that the firm should shut down if price falls below average variable cost).
2. The entire average variable cost.
3. The entire short-run marginal cost curve.
4. The entire average total cost curve.

2. Which of the following statements is true regarding short-run and long-run costs? (Assume all cost curves have typical shapes, e.g., average total cost and average variable cost are U-shaped.)
   1. Average fixed cost always falls as output increases.
   2. Economies of scale exist in both the short-run and the long-run.
   3. If a firm is experiencing diseconomies of scale, then the firm’s long-run average cost curve is rising in the range of the firm’s current output level.
   4. All of the above are true.
   5. Both (a) and (c) are tru

3. In December 2017 it was reported that U.S. rice harvests were down sharply due to bad weather, and prices were expected to rise due to tight supplies. The U.S. rice market is competitive. Holding all else constant (e.g., there are no shifts in demand or changes in the price of substitutes or complements), if total revenue earned by rice farmers goes up as a result of the surprisingly low harvest, we can infer that in the current price range:

1. The demand for rice is elastic.
2. The demand for rice is inelastic.
3. The supply of rice is elasti
4. The demand for rice is less elastic than the supply of rice.

4. Which of the following statements about profit maximization and equilibrium in a perfectly competitive market is necessarily true in a long-run equilibrium?

1. Economic profits are positive, as there are barriers to entry which sustain above normal profits.
2. Economic profits are driven to zero by competition, as barriers to entry are nonexistent (or at least very low).
3. Price is above long-run marginal cost.
4. Price is below the minimum of long-run average cost.

Please provide step by step explaination/diagram if needed.

I do not understand how you post it. When I put some of the answers in, they are wrong.

Comprehensive Problem 5
Part B:

Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing this section.

Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows:

Part B—August Budgets

During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows:

Finished Goods Inventory:

Materials Inventory:

There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January.

Required:

5. Prepare the August production budget. Enter all amounts as positive numbers.

6. Prepare the August direct materials purchases budget. Enter the unit price to the nearest cent. Enter all amounts as positive numbers.

7. Prepare the August direct labor cost budget. For hours required, round to nearest whole hour. For hourly rate, enter to the nearest cent, if required.

8. Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank.

9. Prepare the August budgeted income statement, including selling expenses. Enter all amounts as positive numbers.

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5. Expected sales plus desired ending inventory minus estimated beginning inventory equals production.
6. Production quantity plus desired ending inventory minus estimated beginning inventory equals amount to be purchased. Multiply quantity by the unit price.
7. Multiply direct labor hours required by the direct labor rate per hour.
8. Show all of the variable costs and all of the fixed costs.
9. Start with budgeted sales.
Add the cost of direct materials used in production, the direct labor, and the factory overhead to the beginning finished goods inventory. Subtract the ending finished goods inventory. Subtract cost of goods sold from sales. Subtract selling expenses.

A manufacturer of kitchen appliances is preparing to set the price on a new blender. Demand is thought to depend on the price and is represented by the model

D = 2,500 – 3P

The accounting department estimates that the total cost can be represented by

C = 5,000 + 5D

Develop a mathematical model for the total profit in terms of the price, P. (Using Excel)

JPJ Corp has sales of $ 1.05 ​million, accounts receivable of $ 52,000​, total assets of $ 5.13 million​ (of which $ 2.76 million are fixed​ assets), inventory of $ 154,000​, and cost of goods sold of $ 603,000. What is​ JPJ's accounts receivable​ days? Fixed asset​ turnover? Total asset​ turnover? Inventory​ turnover?