During a Skype session with Tom and Tony, you mention that your current cost model in accounting is break-even analysis. They are not following your explanation, but they say they will swing by with some cookies for a discussion. More cookies! This is paying off, except for those extra pounds.

Selling price to Juicy Cookies at $10 per tin. The cost is $8 per tin, which includes $6 of direct material and $1.50 of direct labor. Annual manufacturing overhead is estimated at $100,000 for the expected sales of 200,000 tins. Operating expenses are projected to be $80,000 annually.

After looking over the costs for manufacturing overhead and operating expenses, you approximate that 85% of manufacturing overhead and 20% of operating expenses are variable costs.

1. What is the TOTAL fixed cost?

2. What is the TOTAL variable cost?

3. What is the contribution margin per UNIT? (Do not round.)

4. How many units are necessary to reach break-even? (Always round up to the next unit for break-even, since you cannot sell a partial unit.)

5. Tony is concerned that they will not be able to sell 200,000 tins of cookies. Given 200,000 tins as their expected sales level, what is the decrease of total sales dollars that they endure before they incur a net loss?

Good Slings Inc. manufactures several wood and string instruments at its factory in Thunder Bay. In particular, it is well-known for its production of classic guitars. Assume that Good Slings uses a periodic inventory system and a physical count of inventory takes place at year end. The company accumulated the following costs and account balances for the year ended December 31, 2010 with respect to direct materials:

In addition, the following table shows Good Slings’ remaining costs for the year:

Do not enter dollar signs or commas in the input boxes.

a) Calculate the cost of direct materials used in production for the year.

Materials used in production: $Answer
b) What is the total manufacturing overhead cost for the year?

Manufacturing Overhead: $Answer
c) Calculate total manufacturing costs.

Total Manufacturing Costs: $Answer
d) If there is no beginning work in process inventory and ending work in process inventory is $54,000, what is the cost of goods manufactured?

Cost of Goods Manufactured: $Answer

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

inventory balances at the beginning and end of the year were as follows:

The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $38,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold.

Required:

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)

These three charts are the requirments for this question.

requirment 1. Income Statement

SUPERIOR COMPNAY
INCOME STATEMENT

The options to fill in the first coloum are: Accounts payable, Accounts recievabel, accumalated depreciation, administrative expense, cash, cost of goods sold, depreciation expense, finished goods, manufacturing overhead, raw materials, sales, selling expesnes, wages payable, work in progess

Rquiremnt 2.

Superio Company  

Schedule of cost of good sold

? 1 has these for the fill in options: beggining finished goods inventroy, cost of good avaliable for sale, direct labor, raw material inventory beginning, raw material inventory ending, unadjusted cost of goods sold

? 2 has these for the fill in options: Add cost of goods maufactured, add ending finshed goods inventory, add overapplied overhead, add underapplied overhead, less cost of goods manufacterd, less ending finished goods inventory, less overapplied overhead, less underapplied overhead

Requirment 3-

Superio company

Schedule of cost good maufacterd

To fill in ? 1 the options are: begning works in progress, ending raw materials in inventroy, ending work in progress inventory, manufactured overhead cost, purchase of raw materials

To fill ? 2 the options are: add begning works in progress, add ending raw materials in inventroy, add ending work in progress inventory, add manufactured overhead cost, add purchase of raw materials, lessbegning works in progress, less ending raw materials in inventroy, less ending work in progress inventory, less manufactured overhead cost, less purchase of raw materials.

I know this is a lot but it is all one questions of my homework. To whoever helps me with this thank you so much!

Item 8

Item 8

Assume a Potbelly's restaurant has the following information available regarding costs at representative levels of monthly sales:

(a) Identify each cost as being variable, fixed, or mixed.

Cost of food sold

Variable

Fixed

Mixed

1.00 points out of 1.00

Wages and fringe benefits

Variable

Fixed

Mixed

1.00 points out of 1.00

Fees paid delivery help

Variable

Fixed

Mixed

1.00 points out of 1.00

Rent on building

Variable

Fixed

Mixed

1.00 points out of 1.00

Depreciation on equipment

Variable

Fixed

Mixed

1.00 points out of 1.00

Utilities

Variable

Fixed

Mixed

1.00 points out of 1.00

Supplies (soap, floor wax, etc.)

Variable

Fixed

Mixed

1.00 points out of 1.00

Administrative costs

Variable

Fixed

Mixed

1.00 points out of 1.00

(b) Use the high-low method to develop a schedule identifying the amount of each cost that is mixed or variable per unit. Total the amounts under each category to develop an equation for total monthly costs.

Round variable cost answers to two decimal places.

* where X = Unit sales

(c) Predict total costs for a monthly sales volume of 9,800 units.
$Answer

Special-Order Decision, Traditional Analysis, Qualitative Aspects

Feinan Sports, Inc., manufactures sporting equipment, including weight-lifting gloves. A national sporting goods chain recently submitted a special order for 5,000 pairs of weight-lifting gloves. Feinan Sports was not operating at capacity and could use the extra business. Unfortunately, the order’s offering price of $12.70 per pair was below the cost to produce them. The controller was opposed to taking a loss on the deal. However, the personnel manager argued in favor of accepting the order even though a loss would be incurred; it would avoid the problem of layoffs and would help maintain the community image of the company. The full cost to produce a pair of weight-lifting gloves is presented below.

Direct materials   $7.40
Direct labor   3.80
Variable overhead   1.60
Fixed overhead   3.10
Total   $15.90
No variable selling or administrative expenses would be associated with the order. Non-unit-level activity costs are a small percentage of total costs and are therefore not considered.

1. Assume that the company would accept the order only if it increased total profits. Should the company accept or reject the order?

Provide supporting computations. If required, round your answers to the nearest cent. Enter a loss as a negative amount.

Incremental revenue per pair   $fill in the blank 2
Incremental cost per pair   fill in the blank 3
Incremental gain (loss) per pair   $fill in the blank 4
Total

in income: $fill in the blank 6
2. Suppose that Feinan Sports has negotiated with the potential customer, and has determined that it can substitute cheaper materials, reducing direct materials cost by $0.80 per unit. In addition, the company’s engineers have found a way to reduce direct labor cost by $0.40 per unit. Should the company accept or reject the order?

Provide supporting computations. If required, round your answers to the nearest cent. Enter a loss as a negative amount.

Incremental revenue per pair   $fill in the blank 8
Incremental cost per pair   fill in the blank 9
Incremental gain (loss) per pair   $fill in the blank 10
Total

in income: $fill in the blank 12

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:

The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:

a. Raw materials were purchased on account, $684,000.

b. Raw materials use in production, $646,400. All of of the raw materials were used as direct materials.

c. The following costs were accrued for employee services: direct labor, $490,000; indirect labor, $150,000; selling and administrative salaries, $319,000.

d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $423,000.

e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $390,000.

f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.

g. Jobs costing $1,623,300 to manufacture according to their job cost sheets were completed during the year.

h. Jobs were sold on account to customers during the year for a total of $3,547,500. The jobs cost $1,633,300 to manufacture according to their job cost sheets.

Required:

1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. What is the ending balance in Raw Materials?

3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. What is the total amount of manufacturing overhead applied to production during the year?

5. What is the total manufacturing cost added to Work in Process during the year?

6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

7. What is the ending balance in Work in Process?

8. What is the total amount of actual manufacturing overhead cost incurred during the year?

9. Is manufacturing overhead underapplied or overapplied for the year? By how much?

10. What is the cost of goods available for sale during the year?

11. What is the journal entry to record the cost of goods sold referred to in item h above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

12. What is the ending balance in Finished Goods?

13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?

14. What is the gross margin for the year?

15. What is the net operating income for the year?

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:

The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:

a. Raw materials were purchased on account, $708,000.

b. Raw materials use in production, $666,400. All of of the raw materials were used as direct materials.

c. The following costs were accrued for employee services: direct labor, $480,000; indirect labor, $150,000; selling and administrative salaries, $335,000.

d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $397,000.

e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $380,000.

f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.

g. Jobs costing $1,606,150 to manufacture according to their job cost sheets were completed during the year.

h. Jobs were sold on account to customers during the year for a total of $3,165,000. The jobs cost $1,616,150 to manufacture according to their job cost sheets

Required:

1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. What is the ending balance in Raw Materials?

3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. What is the total amount of manufacturing overhead applied to production during the year?

5. What is the total manufacturing cost added to Work in Process during the year?

6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

7. What is the ending balance in Work in Process?

8. What is the total amount of actual manufacturing overhead cost incurred during the year?

9. Is manufacturing overhead underapplied or overapplied for the year? By how much?

10. What is the cost of goods available for sale during the year?

11. What is the journal entry to record the cost of goods sold referred to in item h above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

12. What is the ending balance in Finished Goods?

13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?

14. What is the gross margin for the year?

15. What is the net operating income for the year?

Posie

Bags​ (PB) is a designer of​ high-quality backpacks and purses. Each design is made in small batches. Each​ spring, PB comes out with new designs for the backpack and the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When​ completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as​ follows:

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​(Click the icon to view the budgeted​ information.)Read the requirements

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Requirement 1. Identify the cost hierarchy level for each cost category.

Requirement 2. Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver.

Choose from any drop-down list and then click Check Answer.

Data Table

Other budget information​ follows:

PrintDone

Requirements