The following data were obtained from the accounting information system of Attawfik Corporation:
Units Total Cost
Month Produced
January 60 SAR1,533.4
February 50 1,300
March 80 2,000
April 30 833.5
a. Use the data for February and March and the two - point method to determine a cost function.
b. Use the high - low method to determine a cost function.
C. How do you think that a cost function may provide poor estimates of future costs?
In: Finance
Cost Flow Relationships
The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment:
| Sales | $1,270,300 |
| Gross profit | 343,000 |
| Indirect labor | 114,300 |
| Indirect materials | 47,000 |
| Other factory overhead | 21,600 |
| Materials purchased | 647,900 |
| Total manufacturing costs for the period | 1,402,400 |
| Materials inventory, end of period | 47,000 |
Using the above information, determine the following amounts:
| a. Cost of goods sold | $ |
| b. Direct materials cost | $ |
| c. Direct labor cost | $ |
In: Accounting
For product A, a firm has an annual holding cost that is 20% of the item price, an ordering cost of $120 per order, and annual demand of 15,000 units. The product’s discount schedule is given in the following table.
|
Order Size |
Price Per Unit |
|
1 – 250 |
$30.00 |
|
251 – 500 |
$28.00 |
|
501 – 799 |
$26.00 |
|
800 or more |
$25.00 |
-Determine the most cost-effective ordering quantity
-What is the total cost for the order quantity determined in
1).
-Describe inventory policy
In: Accounting
Construct a profit and loss statement using the following departmental figures and show the dollar amounts for net sales, total cost of goods sold, gross margin, expenses, and profit.
Gross sales $82,000
Customer returns and allowances $4,000
Inward freight $2,000
Workroom costs $1,000
Opening inventory at cost $17,000
Closing inventory at cost $14,000
Purchases at cost $36,000
Cash discounts 8%
Advertising $5,000
Rent $12,000
Salaries $17,000
Miscellaneous expenses $2,500
In: Accounting
F: You are planning to invest $25,000 in research &
development (R&D). This investment will generate cost savings
of $17,500 in year 1 and $12,500 in year 2. After 2 years, the
salvage value is zero. The cost of capital is 25% a year.
a) Compute the net present value.
NPV = $
Should you invest? YES NO
b) Following a government stimulus program, the cost of capital
decreased to 10% a year. Compute the net present value at the new
cost of capital.
NPV = $
Should you invest now? YES NO
c) The economy is at full employment and is beginning to overheat
(i.e., total demand exceeds the available capacity, which leads to
rapid price increases). Firms' investment activity increases total
demand and contributes to economic overheating. To prevent high
inflation, the Federal Reserve chairman wants to reduce firms'
investment activity. The Federal Reserve can control the cost of
capital in the economy by adjusting its benchmark interest rate. To
reduce the investment activity, the Federal Reserve should:
reduce the interest rate -- based on (a) and (b), lower cost of
capital will reduce investment
increase the interest rate -- based on (a) and (b), higher cost of
capital will reduce investment
In: Accounting
|
. Using the weighted average process costing method, what is the total physical units to be accounted for? 2. Using the weighted average process costing method, what is the total cost? 3. Using the weighted average process costing method, what is the material cost per equivalent unit? 4. Using weighted average process costing method, what is the cost of units completed and transferred out? 5. Using the weighted average process costing method, what is the cost of ending work in process? 6. Using the FIFO process costing method what is the material beginning WIP equivalent units to be completed? 7. Using the FIFO process costing method, what is the material cost per equivalent unit? 8. Using the FIFO process costing method, what is the conversion cost per equivalent unit? 9. Using the FIFO process costing method, what is the cost of ending work in process? |
Percent Completed |
|||
|
Units |
Material |
Conversion |
||
|
Work In Process, Beginning |
20,000 |
100% |
75% |
|
|
Started into production |
180,000 |
|||
|
Completed and Transferred Units |
160,000 |
|||
|
Work In Process, Ending |
100% |
25% |
||
|
Materials |
Conversion |
|||
|
Work in Process Beginning |
$25,200 |
$24,800 |
||
|
Costs Added during period |
$334,800 |
$238,700 |
||
In: Accounting
Exercise 19-12 Absorption costing and overproduction LO C1
Jacquie Inc. reports the following annual cost data for its
single product.
| Normal production and sales level | 74,000 | units | |
| Sales price | $ | 57.40 | per unit |
| Direct materials | $ | 10.40 | per unit |
| Direct labor | $ | 7.90 | per unit |
| Variable overhead | $ | 12.40 | per unit |
| Fixed overhead | $ | 1,198,800 | in total |
Complete the below table using absorption costing. (Round
cost per unit answers to 2 decimal place.)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
Activity-Based Costing
Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools:
| Fabrication Department |
Finishing Department |
Cost Driver | |
|---|---|---|---|
| Maintenance | $ 60,000 | 30,000 | Machine hours |
| Materials handling | 90,000 | 45,000 | Material moves |
| Machine | 210,000 | 15,000 | Machine setups |
| Inspections |
- |
75,000 |
Inspection hours |
| Total |
$ 360,000 |
$165,000 |
The following activity predictions were also made for the year:
| Fabrication Department |
Finishing Department |
|
|---|---|---|
| Machine hours | 5,000 | 2,500 |
| Material moves | 1,500 | 750 |
| Machine setups | 350 | 25 |
| Inspection hours | - | 500 |
It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models:
| SW100 | SG150 | |
|---|---|---|
| Direct materials cost | $ 20,000 | $ 30,000 |
| Direct labor cost | $ 8,000 | $ 6,000 |
| Machine hours (Fabrication) | 250 | 350 |
| Machine hours (Finishing) | 100 | 50 |
| Materials moves | 20 | 40 |
| Machine setups | 5 | 10 |
| Inspection hours | 15 | 30 |
a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours.
Round rate to two decimal places.
Overhead rate based on total machine hours: $Answer
per machine hour
Use rounded overhead rate calculated about for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead | Answer | Answer |
| Total cost per batch | Answer | Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit | Answer | Answer |
b. Determine the cost of one unit of SW100 and SG150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments.
Round to two decimal places, if applicable.
Overhead rate based on machine hours for Fabrication Dept.: $Answer
per machine hour.
Overhead rate based on machine hours for Finishing Dept.: $Answer
per machine hour.
Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead: | ||
| Fabrication Dept. | Answer | Answer |
| Finishing Dept. |
Answer |
Answer |
| Total cost per batch |
Answer |
Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit |
Answer |
Answer |
c. Determine the cost of one unit of SW100 and SG150, assuming activity-based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities.
Round rate to two decimal places, if applicable.
| Activity-based overhead rates: | |
| Maintenance | Answer |
| Materials handling | Answer |
| Machine setup | Answer |
| Inspection activities | Answer |
Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead: | ||
| Maintenance activity | Answer | Answer |
| Materials handling activity | Answer | Answer |
| Machine setups activity | Answer | Answer |
| Inspections activity |
Answer |
Answer |
| Total cost per batch | Answer | Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit |
Answer |
Answer |
In: Accounting
Activity-Based Costing
Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools:
| Fabrication Department |
Finishing Department |
Cost Driver | |
|---|---|---|---|
| Maintenance | $ 54,000 | 27,000 | Machine hours |
| Materials handling | 81,000 | 40,500 | Material moves |
| Machine | 189,000 | 13,500 | Machine setups |
| Inspections |
- |
67,500 |
Inspection hours |
| Total |
$ 324,000 |
$ 148,500 |
The following activity predictions were also made for the year:
| Fabrication Department |
Finishing Department |
|
|---|---|---|
| Machine hours | 5,000 | 2,500 |
| Material moves | 1,500 | 750 |
| Machine setups | 350 | 25 |
| Inspection hours | - | 500 |
It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rate. The production manager has provided the following data for the production of a batch of 100 units for each of these models:
| SW100 | SG150 | |
|---|---|---|
| Direct materials cost | $ 18,000 | $ 27,000 |
| Direct labor cost | $ 7,200 | $ 5,400 |
| Machine hours (Fabrication) | 250 | 350 |
| Machine hours (Finishing) | 100 | 50 |
| Materials moves | 20 | 40 |
| Machine setups | 5 | 10 |
| Inspection hours | 15 | 30 |
a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours.
Round rate to two decimal places.
Overhead rate based on total machine hours: $Answer per machine hour
Use rounded overhead rate calculated about for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead | Answer | Answer |
| Total cost per batch | Answer | Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit | Answer | Answer |
b. Determine the cost of one unit of SW100 and SG150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments.
Round to two decimal places, if applicable.
Overhead rate based on machine hours for Fabrication Dept.: $Answer per machine hour.
Overhead rate based on machine hours for Finishing Dept.: $Answer per machine hour.
Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead: | ||
| Fabrication Dept. | Answer | Answer |
| Finishing Dept. |
Answer |
Answer |
| Total cost per batch |
Answer |
Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit |
Answer |
Answer |
c. Determine the cost of one unit of SW100 and SG150, assuming activity-based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities.
Round rate to two decimal places, if applicable.
| Activity-based overhead rates: | |
| Maintenance | Answer |
| Materials handling | Answer |
| Machine setup | Answer |
| Inspection activities | Answer |
Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead: | ||
| Maintenance activity | Answer | Answer |
| Maintenance handling activity | Answer | Answer |
| Machine setups activity | Answer | Answer |
| Inspections activity |
Answer |
Answer |
| Total cost per batch | Answer | Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit |
Answer |
Answer |
In: Accounting
Activity-Based Costing
Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools:
| Fabrication Department |
Finishing Department |
Cost Driver | |
|---|---|---|---|
| Maintenance | $ 54,000 | 27,000 | Machine hours |
| Materials handling | 81,000 | 40,500 | Material moves |
| Machine | 189,000 | 13,500 | Machine setups |
| Inspections |
- |
67,500 |
Inspection hours |
| Total |
$ 324,000 |
$ 148,500 |
The following activity predictions were also made for the year:
| Fabrication Department |
Finishing Department |
|
|---|---|---|
| Machine hours | 5,000 | 2,500 |
| Material moves | 1,500 | 750 |
| Machine setups | 350 | 25 |
| Inspection hours | - | 500 |
It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rate. The production manager has provided the following data for the production of a batch of 100 units for each of these models:
| SW100 | SG150 | |
|---|---|---|
| Direct materials cost | $ 18,000 | $ 27,000 |
| Direct labor cost | $ 7,200 | $ 5,400 |
| Machine hours (Fabrication) | 250 | 350 |
| Machine hours (Finishing) | 100 | 50 |
| Materials moves | 20 | 40 |
| Machine setups | 5 | 10 |
| Inspection hours | 15 | 30 |
a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours.
Round rate to two decimal places.
Overhead rate based on total machine hours: Answer
per machine hour
Use rounded overhead rate calculated about for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead | Answer | Answer |
| Total cost per batch | Answer | Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit | Answer | Answer |
b. Determine the cost of one unit of SW100 and SG150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments.
Round to two decimal places, if applicable.
Overhead rate based on machine hours for Fabrication Dept.: Answer
per machine hour.
Overhead rate based on machine hours for Finishing Dept.: Answer
per machine hour.
Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead: | ||
| Fabrication Dept. | Answer | Answer |
| Finishing Dept. |
Answer |
Answer |
| Total cost per batch |
Answer |
Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit |
Answer |
Answer |
c. Determine the cost of one unit of SW100 and SG150, assuming activity-based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities.
Round rate to two decimal places, if applicable.
| Activity-based overhead rates: | |
| Maintenance | Answer |
| Materials handling | Answer |
| Machine setup | Answer |
| Inspection activities | Answer |
Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.
| Product Costs per Unit | SW100 | SG150 |
|---|---|---|
| Direct materials | Answer | Answer |
| Direct labor | Answer | Answer |
| Manufacturing overhead: | ||
| Maintenance activity | Answer | Answer |
| Maintenance handling activity | Answer | Answer |
| Machine setups activity | Answer | Answer |
| Inspections activity |
Answer |
Answer |
| Total cost per batch | Answer | Answer |
| Number of units per batch | Answer | Answer |
| Cost per unit |
Answer |
Answer |
In: Accounting