a. Prepare an answer sheet with the following column headings. Direct Direct Materials Labor a. DM DL Cost Item $75,000 $58,000 $22,100 $25,100 Product Costs Enter each cost item on your answer sheet, placing the dollar amount under the appropriate heading. Total the dollar amounts in each of the columns. Manufacturing Overhead Period Costs MO PC b. Compute the cost to produce one helmet. Classify manufacturing costs into different categories and compute the unit cost.
Q: Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round…
A: Exact Interest The precise interest approach is used by the Federal Reserve banks and the federal…
Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…
A: The cash budget is prepared to record the cash receipts and cash payments for the period. The cash…
Q: (b) Compute the ending inventory using lower-of-average-cost-or-market. Ending inventory at…
A: Ending inventory will be the total inventory to be listed on the balance sheet at the end of the…
Q: interest will Jody owe o
A: Simple interest or ordinary interest doesn’t include compounding. It’s the prorated rate of total…
Q: The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory…
A: The FIFO is the inventory valuation method, under first in first out the prior purchases are sold…
Q: Conservatory Lumber sells rough and finished lumber for building products. At one of the Company…
A: Contribution margin represents portion of sales revenue not consumed by variable cost it is…
Q: These items are taken from the financial statements of Oriole Co. at December 31, 2022. Buildings…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: Which accounts can we find the cost of goods manufactured? (check all that apply) Direct Material…
A: Cost of goods manufacturing includes both variable and fixed manufacturing overhead. It is cost of…
Q: Current Attempt in Progress Kingbird's currently manufactures art supplies, including markers. The…
A: The contribution margin is calculated as difference between sales and variable costs. The operating…
Q: The Westlake Company uses the percent of sales method of accounting for uncollectible accounts…
A: Provision for uncollectible amounts - also known as provision for doubtful debts or reserve for bad…
Q: The City of Rio Rancho adopted the following budget for the calendar year 2020: Revenues: Property…
A: a. General journal entry to record the budget: Debit: Property taxes $8,000,000 Debit: Miscellaneous…
Q: The following are the cash book and bank statement of Jelita Enterprise for December 2022: Cash…
A: The bank reconciliation statement is prepared to adjust the bank balance and book balance for…
Q: The information necessary for preparing the 2024 year-end adjusting entries for Whiteclaw Training…
A: The adjusting entries are made at the end of the accounting year, these entries are made to correct…
Q: E1.3 (LO 2), C Trak Corporation, which manufactures bicycles, incurred the following costs. $100,000…
A: Direct material is the cost of material involved in the making of the goods. Direct labor is the…
Q: For a purchase of goods on destination, input tax of €665 is booked. How high are the trade…
A: Input taxes are added to the cost of purchase. Thus increasing the amount by such tax amount. Goods…
Q: what is the purporse of opening the cost of sales A/C yet a double entry had been made upon their…
A: Cost of goods sold is reported in the income statement of the compant. It is required to be deducted…
Q: [The following information applies to the questions displayed below.] The county collector of…
A: a. The journal entries are as follows: S. No. Account Titles Debit Credit 1. Taxes receivable…
Q: 12/31, a bond (Trading) has an amortized cost/FV of $800,000/ $825,000. Its FV adj. account had a…
A: Unrealized gain / (loss) on investment = Fair value - Cost - Debit Balance of FV Adj. account +…
Q: STARPLUS LIMITED: PLANNING FOR 2023 Starplus, Limited is well known for its focus on customer…
A: The statement of financial position also known as balance sheet shows the assets, liabilities and…
Q: ws the holder to acquire one share of $1 par common stock for $40 per share. Immediately after the…
A: Answer : Market value of bond without warrant =($1000*99%)*$50,000/1000 = $49,500 Market value of…
Q: Double Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. Each product…
A: Lets understand the basics. Joint cost arise when more than one product gets produced from the…
Q: ) Analyze whether int2 should be entered as a provision on the balance sheet. 2) How to book t2?
A: In the given case a coffee machine manufacturer responds to customer complaints and repairs faulty…
Q: Crane's Bike Shop has the following income statement. Sales ($150 per unit) Less: Cost of Goods sold…
A: Answer:- Break-even point:- The break even point is reached when overall costs and total revenues…
Q: Kennedy had a very busy 2022 as she graduated with a master in public health in May and began work…
A: Gross income that is earned by the company before deducting any amount of taxes and deductions. It…
Q: Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced…
A: Equivalent units of production for conversion costs=Units completed+Ending WIP inventory×Ratio of…
Q: The manufacturing of a product requires a standard of 3 direct labour hours at a standard wage rate…
A: Labor rate variance is used to measure the difference between standard labor rate and actual labor…
Q: [The following information applies to the questions displayed below.] The transactions of Spade…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Data Section: Work in process, beginning Units completed during the months Work in process, ending…
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…
Q: Which of the following statements is FALSE? a) The Capital Asset Pricing Model is the most…
A: Answer:- Cost of capital:- The minimum rate of return or profit that a business must achieve before…
Q: ABC Co. is preparing its Sept. 30, 2019 bank reconciliation. The following information was…
A: Lets understand the basics. Bank reconciliation statement is a statemnet which tallies balance as…
Q: Assets Cash Marketable Securities Accounts Receivable Inventory Total Current Assets Gross Plant &…
A: BALANCE SHEET Balance sheet is one of the Important Financial Statement of the Company. Balance…
Q: The Grayson Company uses standard costs to account for its production of a specialty cleaning…
A: Variance analysis is used to observe how well a business is performing and how close actual costs…
Q: How do total variable costs behave as production increases? (Definition of linear:…
A: There are two main types of costs – fixed costs and variable costs. Fixed costs remains constant…
Q: Find Q3 and Q4 estimated tax prepayments.
A: Given, Kold Services Corporation estimates $500,000 as its current year taxable incone…
Q: Transaction Analysis and Financial Statements Expert Consulting Services Inc. was organized on March…
A: Accounting equation is the basic premise of accounting. The accounting equation states that total…
Q: Birtle Corporation reports the following statement of financial position Information for 2017 and…
A: Working Notes for calculation of common-size statement of financial position for BIrtle.
Q: Lily Wyatt is unable to reconcile the bank balance at January 31. Lily's reconciliation is as…
A: The balance of the cash book occasionally does not match the balance of the bank account due to…
Q: Beginning retained earnings Cash Other assets Revenues Dividends $ 203 Common stock 266 Ending…
A: Lets understand the basics. There are three statement are prepared which are, (1) Income statement -…
Q: Statement of Earnings
A: Income statement represents the net icome or net loss that is calculated by deducting the expenses…
Q: marginal tax
A: When a person receives a job offer, he must evaluate it from various aspects, including the salary,…
Q: Terminology Matching Asset Turnover Ratio Current Ratio Days in Inventory Ratio Debt to Assets Ratio…
A: Ratio analysis is a technique of gaining inside review of an organisation . This technique make us…
Q: Ayayai Construction, Inc. experienced the following construction activity in 2021, the first year of…
A: An income statement is a financial statement that displays how lucrative your company was within a…
Q: (a) Pharoah Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2020. The bonds were…
A: An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a…
Q: Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating…
A: Operating cash flows are those cash flows which are generated from the business by operations in the…
Q: The following CVP income statements are available for Sheridan Company and Sunland Company: Sheridan…
A: Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…
Q: z i The year-end adjusted trial balance of Aggies Corporation included the following account…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Accounting Information System Provide an analysis/explanation of the flow of the payment flowchart…
A: Accounting Information System A computer-based system known as an Accounting Information System…
Q: AB Ltd. presents the following selected accounts, all balances are after adjusting journal entries.…
A: The transportation In costs are included in the cost of purchases. The interest expense is not…
Q: Use the cost information below for Sundar Company to determine the total manufacturing costs added…
A: Manufacturing cost refers to the cost incurred in the factory for the production of goods and…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 2.) A company currently buys a key part for a product it manufactures. The company buys the part for $5 per unit and believes it can make the part for $1.50 per unit for direct materials and $2.50 per unit for direct labor. The company allocates overhead costs at the rate of 50% of direct labor. Incremental overhead costs to make this part are $0.75 per unit. Should the company make or buy the part? Create a Total Cost per unit comparison for make or buy options.Bridgeport Racers makes bicycles. It has always purchased its bicycle tires from the Cullumber Tires at $26 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials $9 Direct labor $5 Variable manufacturing overhead $8 The company’s fixed expenses would increase by $73,000 per year if managers decided to make the tire.(a1) Calculate total relevant cost to make or buy if the company needs 11,300 tires a year. Make Buy Total relevant cost $enter a dollar amount $enter a dollar amount (a2) Ignoring qualitative factors, if the company needs 11,300 tires a year, should it continue to purchase them from Balyo or begin to produce them internally? The company select an option should not continueshould continue to purchase the tires.Your bike helmet company is expecting demand for an additional 4,000 helmets in the upcoming year. While you have the capacity to handle the additional demand, a potential supplier has offered to make the 4,000 helmets for $9 per helmet. Other information from the financial accounting system is listed below. Should you make or buy the helmets? Commuter bike helmet Direct material Direct labor Manufacturing overhead: variable Non-manufacturing overhead: variable Total variable cost Manufacturing overhead: fixed Non-manufacturing overhead: fixed Total fixed cost Total cost Commuter helmet price Machine hour $6.54 $1.89 $1.07 $0.86 $10.36 $1.78 $0.98 $2.76 $13.12 $16.00 0.57
- Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting records show these costs:factory space: $250,000 per yearinsurance: $47,000 per yearsupervisor salaries: $125,000 per yearmaterials: $5.00 per lampdirect labor: $2.69 per lamprecycling charge: $0.37 per lampRoadside Inc sells the Megalite to wholesalers for $13.69 each. Calculate Roadside's contribution margin as percent of selling price on the Megalite. (Rounding: tenth of a percent. Report 25.3%, for example, as "25.3".)Pina Colada Racers makes bicycles. It has always purchased its bicycle tires from the Ivanhoe Tires at $25 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials Direct labor Variable manufacturing overhead Total relevant cost $8 $4 The company's fixed expenses would increase by $63,000 per year if managers decided to make the tire. (a1) Calculate total relevant cost to make or buy if the company needs 10,300 tires a year. Make $7 $ BuyNew Firm, Inc. is a manufacturer of various plastic items. The firm applies OH on the basis of machine hours. The rate for the year 2020 was $5.89 per machine hour. What does the rate mean? Why does the firm use a rate instead of simply computing OH per unit in the same way it computes direct materials and direct labour per unit?
- 8. Mazoon Company motorcycle helmets. the company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Mazoon's monthly manufacturing cost and other expense data are as follows. specializes in manufacturing Maintenance costs on factory building Factory manager's salary Advertising for helmets Sales commissions 500 3000 7000 2000 Depreciation on factory building Rent on factory equipment Insurance on factory building Raw materials (plastic, polystyrene, etc.) 19000 Utility costs for factory Supplies for general office Wages [or assembly line workers Depreciation on office equipment Miscellaneous materials (glue, thread, 1900 etc.) 600 5000 2000 700 100 43000 400 a) Prepare an answer with the following heading Enter each cost item on your answer sheet totalling the amount in each column. b) Compute the cost to produce 1 helmet Product Costs Cost Item Direct Material Direct Labor Manuf. Overhead Period CostRequired information [The following information applies to the questions displayed below.] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,500 units, and monthly production costs for the production of 500 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($100 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Total Cost $ 1,500 7,500 650 3,000 480 800 Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove's linear cost equation for a production level of 0 to 1,500 units. Enter answer as an equation in the form of y= a + bx. 4. Calculate…Product A is produced with the following costs: 1) Paper material P20 per unit 2) Plastic P15 per unit 3) Rubber P27000 per 12000 units. 4) Labor P4 per unit 5) Indirect material costs P2.5 per unit The company pays P60,000 for rent per month for factory. It depreciates a P300,000 vehicle used for delivery and a P210,000-machine used for manufacturing, both have a life of 5 years. a. How much should be the total overhead costs if in a month, 1000 units were produced? b. How much should be the direct material costs if in a month, 1,500 units were produced? c. How much is the total conversion cost if 3,000 units are produced? d.How much is the total product cost per unit if in a month of production 4,750 units were produced? e. How many units should be sold in a month to break even?
- Please explain the step so I can understand. Gobblecakes is a bakery that specializes in cupcakes. The annual fixed cost to make cupcakes is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.90. The bakery sells cupcakes for $3.20 apiece. (a). If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit. (b). How many cupcakes will the bakery need to sell in order to break even?Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)