Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum wheels: 3,000 units of Model A and 12,000 units of Model B. The following costs were incurred: Salaries/ Materials Order processing Wages $18,000 Machining Other Total Cost $18,000 Production planning 36,000 36,000 Purchasing 27,000 27,000 Stamping $375,000 37,500 Welding 150,000 42,000 $36,000 42,000 $18,000 466,500 12,000 246,000 Cladding 75,000 75,000 Testing 10,500 10,500 Packaging and shipping 9,000 9,000 12,000 12,000 Invoicing Total $600,000 $192,000 $78,000 $30,000 $900,000 Required: 2. Calculate the unit cost for Models A and B. Unit Cost Model A Model B 3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B. Unit Cost Model A Model B $ Calculate the total unit cost for Models A and B. Unit Cost Model A Model B $ Condhaal

Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum wheels: 3,000 units of Model A and 12,000 units of Model B. The following costs were incurred: Salaries/ Materials Order processing Wages $18,000 Machining Other Total Cost $18,000 Production planning 36,000 36,000 Purchasing 27,000 27,000 Stamping $375,000 37,500 Welding 150,000 42,000 $36,000 42,000 $18,000 466,500 12,000 246,000 Cladding 75,000 75,000 Testing 10,500 10,500 Packaging and shipping 9,000 9,000 12,000 12,000 Invoicing Total $600,000 $192,000 $78,000 $30,000 $900,000 Required: 2. Calculate the unit cost for Models A and B. Unit Cost Model A Model B 3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B. Unit Cost Model A Model B $ Calculate the total unit cost for Models A and B. Unit Cost Model A Model B $ Condhaal

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...

See similar textbooks

Similar questions

Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold
Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 17,600 units of its aluminum wheels: 4,600 units of Model A and 13,000 units of Model B. The following costs were incurred: Materials Salaries/Wages Machining Other Total Cost Order processing $19,400 $19,400 Production planning 108,600 108,600 Purchasing 27,000 27,000 Stamping $350,000 35,000 $37,600 $18,400 441,000 Welding 140,000 41,000 41,000 12,000 234,000 Cladding 385,000 385,000 Testing 10,000 10,000 Packaging and shipping 9,000 9,000 Invoicing 13,400 13,400 Total $875,000 $263,400 $78,600 $30,400 $1,247,400…
Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 17,600 units of its aluminum wheels: 4,600 units of Model A and 13,000 units of Model B. The following costs were incurred: Materials Salaries/Wages Machining Other Total Cost Order processing $19,400 $19,400 Production planning 108,600 108,600 Purchasing 27,000 27,000 Stamping $350,000 35,000 $37,600 $18,400 441,000 Welding 140,000 41,000 41,000 12,000 234,000 Cladding 385,000 385,000 Testing 10,000 10,000 Packaging and shipping 9,000 9,000 Invoicing 13,400 13,400 Total $875,000 $263,400 $78,600 $30,400 $1,247,400…
Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 17,600 units of its aluminum wheels: 4,000 units of Model A and 13,600 units of Model B. The cycle time for Model A is 0.80 hours and that of Model B is 0.55 hours. The total net work hours for the aluminum wheel value stream for the week were 15,000. The following costs were incurred: Salaries/ Materials Wages Machining $18,000 121,200 26,100 GF $370,000 37,000 $37,600 150,000 42,000 42,000 75,000 10,000 10,000 13,200 $277,500 $79,600 Order processing Production planning Purchasing Stamping Welding Cladding Testing Packaging and shipping Invoicing Total $595,000 Model A Model B Other Model A Model B $19,600 12,000 $31,600 Required: 1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost. Round your answer to the nearest dollar amount. $ per unit DBC should be used if the products Total…
Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 34,000 easels were made, and 35,000 were sold for $60 each. The actual unit cost is as follows: Direct materials $14.00 Direct labor 6.00 Variable overhead 10.00 Fixed overhead 15.00 Total unit cost $45.00 The selling expenses consisted of a commission of $1.00 per unit sold and advertising co-payments totaling $94,000. Administrative expenses, all fixed, equaled $179,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $135,000 for 3,000 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. 2. Prepare a cost of goods sold statement. 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, .5235…
Traditional Product Costing versus Activity-Based CostingAssume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $436,000 consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Activity Level Assembly setups $ 124,000 Setup hours 4,000 Materials handling 57,000 Number of moves 600 Assembly 225,000 Assembly hours 12,500 Maintenance 30,000 Maintenance hours 1,200 Total $436,000 Total direct labor hours used during the month were 16,000. Panasonic produces many different electronic products, including the following two products produced during the current month: Model X301 Model Z205 Units produced 2,000 2,000 Direct materials costs $18,550 $18,550 Direct labor costs $5,000 $5,000 Direct labor hours 200 200 Setup hours 30 60 Materials moves 75 150 Assembly hours 500 750 Maintenance hours 25 45 Requireda. Calculate…
Activity-Based Costing Mainline Marine Company has total estimated factory overhead for the year of $920,100, divided into four activities: fabrication, $455,700; assembly, $170,400; setup, $138,000; and inspection, $156,000. Mainline manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 800 dlh 1,700 dlh 40 setups 90 inspections Bass boat 2,300 700 110 300 3,100 dlh 2,400 dlh 150 setups 390 inspections Each product is budgeted for 100 units of production for the year. a. Determine the activity rates for each activity. Fabrication per dhl Assembly per dhl Setup per setup Inspection per inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. If required, round to the nearest cent. Speedboat Bass boat
Number of Materials Requisitions Number of Product Inspections 25 Hours of Number of Machine Product Machine Setups Operation 3,000 1,500 Product 001 12 35 Product 002 55 115 Cost per Pool $10,000 $90,000 $135,000 $22,000 Required: a. Compute the unit activity costs for each of the cost drivers listed. b. Assign the overhead costs to products 001 and 002 using activity-based costing.
Activity-Based Costing Coral Marine Company has total estimated factory overhead for the year of $1,017,200, divided into four activities: fabrication, $414,700; assembly, $177,500; setup, $143,000; and inspection, $282,000. Coral manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 1,100 dlh 1,500 dlh 50 setups 120 inspections Bass boat 1,800 1,000 80 350 2,900 dlh 2,500 dlh 130 setups 470 inspections Each product is budgeted for 100 units of production for the year. a. Determine the activity rates for each activity. Fabrication $fill in the blank per dlh Assembly $fill in the blank per dlh Setup $fill in the blank per setup Inspection $fill in the blank per inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. If required, round to the…
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $9,000 of direct materials. ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Nov. 1 Bal., 900 units, 60% completed 10,566 30 Direct materials, 12,900 units 123,840 134,406 30 Direct labor 21,650 156,056 30 Factory overhead 16,870 172,926 30 Goods transferred, ? units ? ? 30 Bal., 1,400 units, 70% completed ? Based on the above data, determine each of the following amounts. If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in…
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $9,000 of direct materials. ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Nov. 1 Bal., 900 units, 60% completed 10,566 30 Direct materials, 12,900 units 123,840 134,406 30 Direct labor 21,650 156,056 30 Factory overhead 16,870 172,926 30 Goods transferred, ? units ? ? 30 Bal., 1,400 units, 70% completed ? Based on the above data, determine each of the following amounts. If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in…
ssment Tool iFrame A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 7 pounds @ $8 per pound 3 DLH @ $15 per DLH 3 DLH @ $12 per DLH Actual Results 59,200 pounds @ $8.10 per pound 24,900 hours @ $15.50 per hour $ 308,700 8,400 units Exercise 23-8 (Algo) Standard cost per unit, total budgeted and actual costs, and total cost variance LO P2 (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the standard cost card showing standard cost per unit. Direct materials Direct labor Overhead Total $ 0