Carla Vista Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 118,700 units. Sales Cost of goods sold Selling and administrative expenses Net income x Your answer is incorrect. Amount Revenues $4,748,000 3,582,083 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $235,000. In July, normally a slack manufacturing month, Carla Vista receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses. 503,262 Cost of goods sold Selling and $662,655 What is the minimum selling price on the special order to produce net income of $5.00 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price S Can you guys help me find the minimum selling price? 25.36 Reject Order Accept Order 280.000 220.900 $ Net Income Increase (Decrease) 280,000 -220.900

Carla Vista Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 118,700 units. Sales Cost of goods sold Selling and administrative expenses Net income x Your answer is incorrect. Amount Revenues $4,748,000 3,582,083 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $235,000. In July, normally a slack manufacturing month, Carla Vista receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses. 503,262 Cost of goods sold Selling and $662,655 What is the minimum selling price on the special order to produce net income of $5.00 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price S Can you guys help me find the minimum selling price? 25.36 Reject Order Accept Order 280.000 220.900 $ Net Income Increase (Decrease) 280,000 -220.900

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Kimber Company has the following unit costs for the current year: Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is: a. 560,000. b. 575,000. c. 615,000. d. 630,000.
Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
Sheridan Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at of plant capacity and producing 119, 400 units. Fixed costs for the period were cost of goods sold, and selling and administrative expenses. In July, normally a slack manufacturing month, Sheridan receives a special order for 10, 000 basketballs at each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses per unit because of shipping costs but would not increase fixed costs and expenses. (a) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e g. 15.25. Enter negative amounts using either a negative sign preceding the number e. g. or parentheses e. g. (45).) (b) Should Sheridan Inc, accept the special order?
Munoz Manufacturing Company expects to make 30,100 chairs during the Year 1 accounting period. The company made 4,400 chairs in January. Materials and labor costs for January were $16,700 and $25,100, respectively. Munoz produced 1,600 chairs in February. Material and labor costs for February were $8,000 and $12,300, respectively. The company paid the $571,900 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Munoz desires to sell its chairs for cost plus 20 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January 14.14 $ February 38.81
Wildhorse Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 119,900 units. Amount $4,676,100 Sales Cost of goods sold 3,569,024 Selling and administrative expenses 443,437 Net income $663,639 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $248,000. In July, normally a slack manufacturing month, Wildhorse Sports receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 15.25. Enter negative amounts using either a…
ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Amount Sales $4,680,000 Cost of goods sold 3,685,200 Selling and administrative expenses 499,200 Net income $495,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $228,000.In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. What is the minimum selling price on the special order to produce net income of $5.05 per ball? (Round answer to 2 decimal places,…
Benson Manufacturing Company produced 3,000 units of inventory in January Year 2. It expects to produce an additional 9,800 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 12,800 units. Direct materials and direct labor costs are $71 and $53 per unit, respectively. Benson expects to incur the following manufacturing overhead costs during the Year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required $ 5,800 182,000 135,000 33,000 332,200 a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 3,000 units of product made in January.
SplishBrothers Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,680,000 3,582,000 513,400 $584,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271.000. In July, normally a slack manufacturing month, SplishBrothers Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses.
ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Amount Sales $4,680,000 Cost of goods sold 3,685,200 Selling and administrative expenses 499,200 Net income $495,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $228,000.In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all…