Garden Depot is a retailer that provided the following budgeted cash flows for next year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 340,000 $ 460,000 $ 390,000 $ 410,000 Total cash disbursements $ 386,000 $ 356,000 $ 346,000 $ 366,000 The company’s beginning cash balance for next year will be $24,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded. Required: Prepare the company’s cash budget for next year. Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign. #CostAccouting #Accounting #Techniques

The production manager of Rordan Corporation prepared the following quarterly production forecast for next year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,800 7,000 7,400 8,300 Each unit requires 0.55 direct labor-hour, and direct laborers are paid $10.00 per hour. Required: 1. Prepare a direct labor budget for next year. #CostAccounting #Accounting #Techniques #AccountingHelp

Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: April May June Total Budgeted sales (all on account) $ 470,000 $ 670,000 $ 230,000 $ 1,370,000 The company estimates 25% of a month’s sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $400,000, and March sales totaled $430,000. Required: Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. What is the accounts receivable balance on June 30th? #CostAccounting #Accounting #Technique

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $770. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 24,000 Units sold 21,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 160 Direct labor $ 430 Variable manufacturing overhead $ 47 Variable selling and administrative $ 23 Fixed costs: Fixed manufacturing overhead $ 800,000 Fixed selling and administrative $ 710,000 Required: Assume the company uses absorption costing. Compute the unit product cost for one gamelan. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Assume the company uses variable costing. Compute the unit product cost for one gamelan. #CostAccounting #Accounting

Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 12 Direct labor $ 4 Variable manufacturing overhead $ 2 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 370,000 Fixed selling and administrative $ 200,000 During the year, the company produced 37,000 units and sold 18,000 units. The selling price of the company’s product is $55 per unit. Required: Assume the company uses absorption costing: Compute the unit product cost. Prepare an income statement for the year. Assume the company uses variable costing: Compute the unit product cost. Prepare an income statement for the year. #CostAccounting #Accounting #Techniques #AbsorptionCosting

Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 9.00 $ 36.00 Variable expenses per unit $ 2.80 $ 13.00 Traceable fixed expenses per year $ 131,000 $ 32,000 Last year the company produced and sold 44,000 units of Weedban and 24,000 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines. #CostAccounting #IncomeStatement #Techniques

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly contribution format income statement: Sales $ 1,595,000 Variable expenses 635,300 Contribution margin 959,700 Fixed expenses 1,056,000 Net operating income (loss) $ (96,300) In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information: Division East Central West Sales $ 445,000 $ 640,000 $ 510,000 Variable expenses as a percentage of sales 44% 36% 41% Traceable fixed expenses $ 292,000 $ 322,000 $ 207,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department believes increasing the West Division's monthly advertising by $27,000 will increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? #CostAccounting #Accounting #IncomeStatement

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $290,000, variable expenses of $149,100, and traceable fixed expenses of $69,300. The Alpha Division has sales of $600,000, variable expenses of $331,800, and traceable fixed expenses of $130,300. The total amount of common fixed expenses not traceable to the individual divisions is $131,200. What is the company's net operating income? Multiple Choice $209,500 $78,300 $268,200 $409,100 #CostAccounting #Accounting #NetOperatingIncome

lim (x→0)⁡ (sin2x+2 arctan⁡(3x)+3x^2)/(ln⁡(1+3x+sin^2⁡x )+xe^x ) 0/0→Lô-pi-tan⁡ (L^' Hospital) #CachGiai #ToanCaoCap #ChuongTrinhMoi

FRZ Corporation uses job-order costing. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated production 140,000 Machine-hours required to support estimated production 70,000 Fixed manufacturing overhead cost $ 784,000 Variable manufacturing overhead cost per direct labor-hour $ 2.00 Variable manufacturing overhead cost per machine-hour $ 4.00 During the year, Job 550 was started and completed. The following information pertains to this job: Direct materials $ 175 Direct labor cost $ 225 Direct labor-hours 15 Machine-hours 5 Required: Assume FRZ has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: Compute the plantwide predetermined overhead rate. Compute the total manufacturing cost of Job 550. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? Assume FRZ’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach: Compute the plantwide predetermined overhead rate. Compute the total manufacturing cost of Job 550. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? Note: Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar. #CostAccounting #Accounting #Techniques

Chrome, Incorporated, manufactures and sells two products: Product F8 and Product M3. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product F8 500 8.0 4,000 Product M3 200 7.0 1,400 Total direct labor-hours 5,400 The direct labor rate is $19.30 per DLH. The direct materials cost per unit is $204.50 for Product F8 and $199.90 for Product M3. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product F8 Product M3 Total Labor-related DLHs $ 59,400 4,000 1,400 5,400 Product testing Tests 52,192 300 500 800 Order size MHs 613,248 4,900 4,700 9,600 $ 724,840 Required: Determine the unit product cost of each product under the activity-based costing method. #CostAccounting #Accounting #Techniques

Which of the following journal entries would be used to record direct labor costs in a company having two processing departments (Department A and Department B)? Multiple Choice Debit Credit Salaries and Wages Expense XXX Salaries and Wages Payable XXX Debit Credit Work in Process-Department A XXX Work in Process-Department B XXX Salaries and Wages Payable XXX Debit Credit Salaries and Wages Payable XXX Work in Process XXX Debit Credit Work in Process XXX Salaries and Wages Payable XXX

Hettrick International Corporation's only product sells for $120.00 per unit and its variable expense is $52.80. The company's monthly fixed expense is $396,480 per month. The unit sales to attain the company's monthly target profit of $13,000 is closest to: Note: Round your intermediate calculations to 2 decimal places. Multiple Choice 6,093 3,412 7,755 5,753 #CostAccounting #Accounting #Techniques

The following data are available for the Phelps Corporation for a recent month: Product A Product B Product C Total Sales $ 150,000 $ 130,000 $ 90,000 $ 370,000 Variable expenses 91,000 104,000 27,000 222,000 Contribution margin $ 59,000 $ 26,000 $ 63,000 148,000 Fixed expenses 55,000 Net operating income $ 93,000 The break-even sales for the month for the company is closest to: Multiple Choice $203,000 $91,667 $137,500 $148,000 #CostAccounting #BreakEvenSales

Decaprio Incorporated produces and sells a single product. The company has provided its contribution format income statement for June. Sales (6,500 units) $ 292,500 Variable expenses 195,000 Contribution margin 97,500 Fixed expenses 88,200 Net operating income $ 9,300 If the company sells 6,700 units, its net operating income should be closest to: Note: Do not round intermediate calculations. Multiple Choice $9,586 $9,300 $18,300 $12,300 #CostAccounting #Accounting #NetOperatingIncome #Solutions

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (5,200 units) $ 176,800 Variable expenses 78,000 Contribution margin 98,800 Fixed expenses 46,400 Net operating income $ 52,400 If the company sells 5,300 units, its total contribution margin should be closest to: Note: Do not round intermediate calculations. Multiple Choice $98,800 $53,408 $100,700 $102,200 #CostAccounting #Accounting #Techniques

Data concerning Dorazio Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 160 100% Variable expenses 48 30% Contribution margin $ 112 70% Fixed expenses are $87,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $28. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $5,600 increase of $33,600 decrease of $5,600 decrease of $33,600 #CostAccounting #NetOperatingIncome

Malmedy Corporation uses the FIFO method in its process costing system. The following data pertain to operations in the first processing department for a recent month: Work in process, beginning: Units in process ?question mark Percent complete with respect to materials 75% Percent complete with respect to conversion 50% Costs in the beginning inventory: Materials cost $ 2,300 Conversion cost $ 3,600 Units started into production during the month 25,200 Units completed and transferred out during the month 24,000 Costs added to production during the month: Materials cost $ 98,750 Conversion cost $ 220,500 Work in process, ending: Units in process 2,000 Percent complete with respect to materials 80% Percent complete with respect to conversion 45% How many units were in the beginning work in process inventory? #CostAccounting #WorkInProcess #TransferredOut #AccountingHelp

Maria Am Corporation uses the weighted-average method of process costing. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $4,870, the cost of ending work in process inventory was $1,120, and the cost added to production was $25,450. Required: Prepare a cost reconciliation report for the Baking Department for June. #CostAccounting

Superior Micro Products uses the weighted-average method of process costing. Data for the Assembly Department for May appear below: Materials Labor Overhead Work in process, May 1 $ 30,800 $ 50,625 $ 246,600 Cost added during May $ 186,690 $ 33,750 $ 164,400 Equivalent units of production 2,600 2,500 2,400 Required: Compute the cost per equivalent unit for materials, labor, overhead, and in total. Note: Round your answers to 2 decimal places. #CostAccounting #Accounting #Techniques #Solutions

Clonex Labs, Incorporated, uses the weighted-average method of process costing. The following data are available for one department for October: Units Percent Completed Materials Conversion Work in process, October 1 51,000 90% 65% Work in process, October 31 35,000 70% 53% The department started 393,000 units into production during the month and transferred 409,000 completed units to the next department. Required: Compute the equivalent units of production for October. #CostAccounting #Techniques #Accounting

Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing departments—Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy-making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T-accounts below show the flow of costs through the two departments in April: Work in Process—Cooking Debit Credit Balance 4/1 10,000 Transferred out 761,000 Direct materials 330,000 Direct labor 262,000 Overhead 194,000 Work in Process—Molding Debit Credit Balance 4/1 24,000 Transferred out 975,000 Transferred in 761,000 Direct labor 122,000 Overhead 85,000 Required: Prepare journal entries showing the flow of costs through the two processing departments. #CostAccounting #Accounting #Techniques

Information below is for the production and sale of 5,000 units for this year. The sales price is $300 per unit. Sales Variable costs $ 1,500,000 $285,000 Metal for casing Wages of assembly workers Stands for units Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Administrative salaries 440,000 175,000 $ 9,000 18,000 78,000 135,000 1. Compute contribution margin per unit and contribution margin ratio. Contribution margin per unit Contribution margin ratio % 2. Compute the break-even points in units and in sales dollars. Break-even in units units Break-even in sales dollars 3. Compute the margin of safety in dollars and in percent. Margin of safety in dollars Margin of safety (%) % #CostAccounting #Accounting

A company reports the information below for the single product it produces and sells. Sales price per unit Variable costs per unit Total fixed costs (1) Compute contribution margin per unit. $95 $38 $193,800 Contribution margin (2) Compute the break-even point in units. Numerator per unit per unit per unit 1 Denominator 1 (3) Compute income in dollars if 3,700 units are sold. X = Break Even Units = Break even units Fixed costs = Income = #CostAccounting #Accounting #Techniques

Use the following information to compute the number of units that must be sold to achieve a target income of $50,000. Fixed costs Selling price per unit Variable costs per unit $ 200,000 $ 25 $15 #CostAccounting #Accounting #TargetIncome

Use the following information to compute the dollar amount of sales needed to reach a target income of $128,000 #CostAccounting #TargetIncome #FixedCosts

Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $200 and of each door is $500. The variable cost of each window is $125 and of each door is $350. Fixed costs are $720,000. (1) Compute the weighted-average contribution margin. Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: 1 / Denominator: = Break Even Units = #CostAccounting #BreakEvenPoint #Accounting

Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: (c) Compute the company's break-even point in units. Numerator: Denominator: = = Contribution Margin Ratio Contribution margin ratio Denominator: = Break-Even Units = Break-even units (d) Compute the company's break-even point in dollars of sales. Numerator: Denominator: = Break-Even Dollars = Break-even dollars #BreakEvenPoint #BreakEven #CostAccounting #Accounting

Following are year-end assets for a manufacturer and a merchandiser. Account Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Merchandise inventory Prepaid insurance Company T Company R $ 6,000 $ 7,000 41,000 68,000 21,000 40,000 25,000 48,000 1,000 2,000 #CostAccounting #Accounting

A company bakes and sells muffins. The company's costs for the period include: Wages of bakers making muffins, $24,000; salary of bakery supervisor, $6,000; depreciation expense on bakery equipment, $2,000; advertising costs, $520; and flour and ingredient costs, $15,000. Compute the total (a) prime cost and (b) conversion cost. Complete this question by entering your answers in the tabs below. Prime Cost Conversion Cost #CostAccounting #Accounting #Techniques #Solutions

[The following information applies to the questions displayed below.] Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. 1. Plastic for casing-$17,000 Costs 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$5,000 4. Office accounting salaries-$35,000 5. Drum stands-$26,000 6. Rent cost of office for accountants-$10,000 7. Office management salaries-$125,000 8. Annual fee for factory maintenance-$10,000 9. Sales commissions-$15,000 10. Factory machinery depreciation, straight-line-$40,000 Required: 1. Classify each cost and its amount as either product or period. The first cost is completed as an example. #CostAccounting #Accounting #PeriodCost #ProductCost

Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pools (and Activity Measures) Estimated Overhead Cost Machine related (machine-hours) $ 244,800 Batch setup (setups) $ 243,660 Order size (direct labor-hours) $ 165,600 Activity Cost Pools Expected Activity Product X Product Y Total Machine related 4,100 6,100 10,200 Batch setup 8,200 1,100 9,300 Order size 3,100 6,100 9,200 Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: Note: Round your intermediate calculations to 2 decimal places. #CostAccounting #Accounting #Techniques

Privott, Incorporated, manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product Z9 Product N0 Total Labor-related DLHs $ 343,018 8,300 4,900 13,200 Product testing tests 55,247 1,350 1,450 2,800 Order size MHs 480,608 5,900 6,200 12,100 $ 878,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: #costaccounting #Accounting #Solutions #ManufacturingOverhead

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Assembling products $ 3.96 per assembly hour Processing customer orders $ 49.33 per customer order Setting up batches $ 77.33 per batch Data for one of the company's products follow: Product Q79P Number of assembly hours’ 263 Number of customer orders 53 Number of batches 79 How much overhead cost would be assigned to Product Q79P using the activity-based costing system? Note: Round your intermediate calculations to 2 decimal places. #CostAccounting #ActivityBasedCostSystem #CostSystem #AccountingHelp

Merone Company allocates materials handling cost to the company's two products using the below data: Modular Homes Prefab Barns Total expected units produced 5,500 8,500 Total expected material moves 550 150 Expected direct labor-hours per unit 750 250 The total materials handling cost for the year is expected to be $250,000. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the prefab barns is closest to: Note: Round your intermediate calculations to 2 decimal places. #CostAccounting #CostAllocation #Accounting

Spates, Incorporated, manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product H2 100 6.0 600 Product E0 100 5.0 500 Total direct labor-hours 1,100 The company’s expected total manufacturing overhead is $266,468. If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: Note: Round your intermediate calculations to 2 decimal places. #CostAccounting #Accounting

The $10,000 balance in the T-account below represents overapplied manufacturing overhead for the period. Manufacturing Overhead Debit Credit (2) 4,000 (7) 180,000 (3) 30,000 (4) 80,000 (5) 40,000 (6) 36,000 190,000 180,000 Balance 10,000 #CostAccounting #Accounting #Techniques

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,020 hours and the total estimated manufacturing overhead was $550,500. At the end of the year, actual direct labor-hours for the year were 21,800 hours and the actual manufacturing overhead for the year was $550,500. Overhead at the end of the year was: #CostAccounting #Accounting #Techniques

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $240,300 and 4,780 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,670. The predetermined overhead rate for the year was closest to: #CostAccounting #Accounting #Techniques

The following accounts are from last year’s books at Sharp Manufacturing: Raw Materials Debit Credit Balance 0 (b) 154,600 (a) 165,500 10,900 Work In Process Debit Credit Balance 0 (f) 512,400 (b) 132,300 (c) 168,600 (e) 211,500 0 Finished Goods Debit Credit Balance 0 (g) 463,000 (f) 512,400 49,400 Manufacturing Overhead Debit Credit (b) 22,300 (e) 211,500 (c) 26,300 (d) 156,600 6,300 Cost of Goods Sold Debit Credit (g) 463,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year? #CostAccounting #Accounting #Techniques

Tenneson Corporation’s cost of goods manufactured for the just completed month was $151,000 and its inventories were as follows: Beginning Ending Work in process inventory $ 63,000 $ 66,000 Finished goods inventory $ 34,000 $ 48,000 How much was the cost of goods available for sale on the Schedule of Cost of Goods Sold? #CostAccounting #Accounting #CostOfGoodsSales

Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 46,000 units next year and Product L is expected to sell 9,200 units. A unit of either product requires 0.8 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $3,753,600. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product? 1-b. Compute the total amount of overhead cost that would be applied to each product. 2. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $1,876,800 assigned to Product H and $1,876,800 assigned to Product L. If this suggestion is followed, how much overhead cost per unit would be assigned to each product? #CostAccounting #Accounting #Techniques

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 165,200 41,300 DLHs Purchase orders Number of orders $ 13,020 217 orders Parts management Number of part types $ 82,840 109 part types Board etching Number of boards $ 92,400 1,680 boards General factory Machine-hours $ 128,100 18,300 MHs Required: Compute the activity rate for each of the activity cost pools. The expected activity for the year was distributed among the company’s four products as follows: Activity Cost Pool Expected Activity Product A Product B Product C Product D Labor-related (DLHs) 7,400 24,400 3,500 6,000 Purchase orders (orders) 60 29 45 83 Parts management (part types) 38 18 38 15 Board etching (boards) 340 700 640 0 General factory (MHs) 2,600 6,200 4,000 5,500 Using the ABC data, determine the total amount of overhead cost assigned to each product. #CostAccounting #Accounting #Cost #ActivityLevel

Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $ 29,200 4,000 direct labor-hours Machine-related $ 7,000 7,000 machine-hours Machine setups $ 18,000 500 setups Production orders $ 24,000 500 orders Product testing $ 24,000 1,200 tests Packaging $ 47,600 3,400 packages General factory $ 59,600 4,000 direct labor-hours 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. #CostAccounting #Accounting #Techniques #PredeterminedOverheadRate

Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $ 29,200 4,000 direct labor-hours Machine-related $ 7,000 7,000 machine-hours Machine setups $ 18,000 500 setups Production orders $ 24,000 500 orders Product testing $ 24,000 1,200 tests Packaging $ 47,600 3,400 packages General factory $ 59,600 4,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. #ActivityCost #ActivityRate

Latta Company provided the following T-accounts for this year. Manufacturing Overhead Debit Credit (a) 506,880 (b) 422,400 Balance 84,480 Work in Process Debit Credit Balance 2,600 (c) 790,000 330,000 95,000 (b) 422,400 Balance 60,000 Finished Goods Debit Credit Balance 30,000 (d) 680,000 (c) 790,000 Balance 140,000 Cost of Goods Sold Debit Credit (d) 680,000 The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows: Work in Process, ending $ 28,800 Finished Goods, ending 67,200 Cost of Goods Sold 326,400 Overhead applied $ 422,400 For example, of the $60,000 ending balance in work in process, $28,800 was applied overhead. Required: Identify reasons for entries (a) through (d). Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. Assume underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry. #CostAccounting #Accounting #Manufacturing #AccountingHelp

Primare Corporation provided the following data for last month’s manufacturing operations. Purchases of raw materials $ 31,000 Indirect materials used in production $ 4,970 Direct labor $ 58,600 Manufacturing overhead applied to work in process $ 88,200 Underapplied overhead $ 4,190 Inventories Beginning Ending Raw materials $ 11,400 $ 19,900 Work in process $ 54,000 $ 65,500 Finished goods $ 34,900 $ 43,800 Required: Prepare a schedule of cost of goods manufactured. Prepare a schedule of cost of goods sold. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold. #CostAccounting #ManagerialAccounting #Accounting #Techniques

Larned Corporation recorded the following transactions for the just completed month. Purchased $89,000 of raw materials on account. $87,000 in raw materials were used in production. Of this amount, $74,000 was direct materials and the remainder was indirect materials. Paid employees $122,500 cash. Of this amount, $100,600 was direct labor and the remainder was indirect labor. Depreciation of $196,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. #CostAccounting #Accounting #JournalEntries #manufacturingoverhead

Shown here are annual financial data for a merchandising company and a manufacturing company. Music World Retail Beginning inventory Merchandise Finished goods Cost of merchandise purchased Cost of goods manufactured Ending inventory Merchandise Finished goods Required: Wave-Board Manufacturing $ 200,000 $ 500,000 300,000 875,000 175,000 225,000 Prepare the cost of goods sold section of the income statement for each company. Complete this question by entering your answers in the tabs below. Merchandising Manufacturing Business Business Prepare the cost of goods sold section of the income statement for the Merchandising Business. Cost of goods sold Cost of Goods Sold for the Year Goods available for sale Cost of goods sold #CostAccounting #Accounting #MerchandiseInventory

Cost Accounting: Determine the missing amount from each of the separate situations given below #AccountingFormula #Accounting #Techniques

Byrde Company purchased a truck. The seller asked for $11,000, but Byrde paid only $10,000 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $15,000. What amount does Byrde record on its financial statements for the truck? Snell Company performs services for a client in May and bills the client $1,000. In June, Snell receives a partial payment of $300 cash. In July, the remaining $700 cash is received. Determine the monthly revenue recorded in May applying revenue recognition principle. #accounting #AccountingHelp #Techniques

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data Total machine-hours Total fixed manufacturing overhead cost $352,000 Variable manufacturing overhead per machine-hour 32,000 Recently, Job T687 was completed with the following characteristics: Number of units in the job Total machine-hours Direct materials $ 675 Direct labor cost $1,350 10 40 The amount of overhead applied to Job T687 is closest to: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice S112.00 $663.40 S560.00 S352.00 #PredeterminedOverheadRate #CostAccounting #Accounting #Techniques

Lupo Corporation uses a job-order costing Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- 31,000 $310,000 4.00 hour Recently, Job T687 was completed with the following characteristics: 10 Number of units in the job Total machine-hours Direct materials Direct labor cost 30 $ 730 $1,460 The unit product cost for Job T687 is closest to Multiple Choice $8700 $115.00 $219.00 $261.00 #CostAccounting #Accounting #Techniques

Sargent Corporation applies overhead cost to jobs on the basis of 70% of direct labor cost. If Job 210 shows $20,300 of manufacturing overhead cost applied, how much was the direct labor cost on the job? Multiple Choice $29,000 51.210 $14,210 $34,510 O O $20,300 #CostAccounting #Accounting #OverheadRate #ManufacturingOverheadCost

Eisentrout Corporation has two production departments, Machining and Customizing. The company uses ajob-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning ofthe current year, the company had made the following estimates: Machining Customizing 27,000 Machine-hours 26,000 Direct labor-hours 18,000 2,000 $153,400 $11,600 Total fixed manufacturing overhead cost variable manufacturing overhead per machine- 1.40 hour Variable manufacturing overhead per direct 3.20 labor-hour During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272 Customizing Machining Machine-hour 40 10 Direct labor-hours 30 40 The estimated total manufacturing overhead for the Machining Department is closest to: #costaccounting #Accounting #MachiningDepartment #PredeterminedOverheadRate

Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 46,000 labor-hours. The estimated variable manufacturing overhead was $6.25 per labor-hour and the estimated total fixed manufacturing overhead was $1,026,260. The actual labor-hours for the year turned out to be 41,200 labor-hours. The predetermined overhead rate for the recently completed year was closest to: Multiple Choice $28.56 per labor-hour $31.16 per labor-hour $6.25 per labor-hour $22.31 per labor-hour #costaccounting #Accounting #Techniques #PredeterminedOverheadRate

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated machine-hours Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead 72,400 $ 3.10 per machine-hour $838,790 The predetermined overhead rate for the recently completed year was closest to: #CostAccounting #Accounting #Techniques #Cost

Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Casting 26,000 15,000 $140,400 $ 1.80 Customizing 24,000 10,000 $41,000 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour Variable manufacturing overhead per direct labor-hour $ 4.60 The estimated total manufacturing overhead for the Customizing Department is closest to: Multiple Choice $209,400 $46,000 $41,000 O O $87,000 #AccountingHelp #CostAccountingHelp #Solutions

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 47,000 Total fixed manufacturing overhead cost $ 202,100 Variable manufacturing overhead per direct labor-hour $ 2.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 50 Total direct labor-hours 100 Direct materials $ 850 Direct labor cost $ 4,700 The total job cost for Job P951 is closest to: Note: Round your intermediate calculations to 2 decimal places. Multiple Choice $6,180 $1,480 $5,550 $5,330 #CostAccounting #Accounting #Techniques #Answered

Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials Direct labor-hours Direct labor wage rate Machine-hours $2,414 74 labor-hours $ 17 per labor-hour 137 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $18 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be: Multiple Choice $6,978 $6,138 $3,672 $3,462 #CostAccountingHelp #CostAccounting #Techniques #Solutions

Tirri Corporation has provided the following information: Cost per Period Cost per Unit $ 7.25 $ 3.35 $ 1.30 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $ 23,900 $ 1.05 $ 0.60 $ 8,300 If the selling price is $27.60 per unit, the contribution margin per unit sold is closest to: Multiple Choice O $7.32 $9.18 0 $14.05 $17.00 #CostAccounting #Accounting #Techniques #Solutions

A partial listing of costs incurred at Archut Corporation during September appears below: Direct materials $113,000 Utilities, factory $ 5,000 Administrative salaries $ 81,000 Indirect labor $ 25,000 Sales commissions $ 48,000 Depreciation of production equipment $ 20,000 Depreciation of administrative $ 30,000 equipment Direct labor $ 129,000 Advertising $135,000 The total of the manufacturing overhead costs listed above for September is: #CostAccountingHelp #costaccounting #Solutions #Answered

Timchak Corporation reports that at an activity level of 9,900 units, its total variable cost is $919,116 and its total fixed cost is $259,974. What would be the total cost, both fixed and variable, at an activity level of 10,100 units? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.) Multiple Choice $1,197,658 $1,191,000 $1,179,090 $1,202,910 #CostAccountingHelp #Techniques #Solutions #VariableCost #FIxedCosts

Cost Accounting Help: Given the cost formula Y = $23,000 + $8X, total cost at an activity level of #CostAccounting #AccountingHelp #Techniques

Bellucci Corporation has provided the following information: Cost per Period Cost per Unit $ 7.15 $ 4.40 $ 1.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $ 113,400 $ 1.25 $ 0.50 $ 41,850 The incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to (assume that the increase is within the relevant range): $27.05 $12.75 $31.75 O $25.35 #CostAccountingHelp #CostAccounting #Techniques #Solutions

The following costs were incurred in May: Direct materials Direct labor Manufacturing overhead Selling expenses Administrative expenses $42,200 $32,800 $25,400 $18,800 $40,200 Conversion costs during the month totaled: Multiple Choice $58,200 O $67,600 #CostAccountingHelp #Techniques #CostAccounting

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $69,200. The company's beginning merchandise inventory was $15,600 and its ending merchandise inventory was $28,800. What was the total amount of the company's merchandise purchases for the month? Multiple Choice Ο $69,200 Ο $56,000 Ο $82.400 Ο $113,600 #CostAccountingHelp #Accounting #Techniques

Kesterson Corporation has provided the following information: Cost Cost per Unit Period per Direct materials $6.20 $3.10 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions $1.35 $14,000 $1.50 Variable administrative expense $0.40 Fixed selling and administrative $4,500 expense If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to: Multiple Choice $25,600 $13,200 $19,400 $16,300 #CostAccountingHelp #AccountingHelp #ManufacturingOverhead #Solutions

Tech Solutions is a consulting firm that uses job-order costing. Its direct materials consist of hardware and software it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants who work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies consumed serving clients. Tech Solutions computes its predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, it estimated 60,000 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $390,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $409,300 and its actual total direct labor was 67,450 hours. Required: Compute the predetermined overhead rate. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available for this job: Direct materials $ 48,450 Direct labor cost $ 25,700 Direct labor-hours worked 240 Compute the total job cost for Xavier Company. #Accounting #CostAccounting #PredeterminedOverheadRate #Techniques #ManagerialAccounting

The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 990,000 Selling price per pair of skis $ 450 Variable selling expense per pair of skis $ 49 Variable administrative expense per pair of skis $ 16 Total fixed selling expense $ 155,000 Total fixed administrative expense $ 115,000 Beginning merchandise inventory $ 75,000 Ending merchandise inventory $ 120,000 Merchandise purchases $ 310,000 Required: Prepare a traditional income statement for the quarter ended March 31. Prepare a contribution format income statement for the quarter ended March 31. What was the contribution margin per unit? #CostAccounting #TraditionalIncomeStatement #ContributionFormatIncomeStatement

Cherokee Incorporated is a merchandiser that provided the following information: Amount Number of units sold 10,000 Selling price per unit $ 17 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 1 Total fixed selling expense $ 20,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 11,000 Ending merchandise inventory $ 26,000 Merchandise purchases $ 86,000 Required: Prepare a traditional income statement. Prepare a contribution format income statement. #CostAccounting #ManagerialAccounting #TraditionalIncomeStatement #ContributionFormatIncomeStatement #Accounting

Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 63,000 to 103,000 units is given below: Required: Complete the schedule of the company’s total costs and costs per unit as given in the relevant tab below. Assume the company produces and sells 93,000 units during the year at a selling price of $8.98 per unit. Prepare a contribution format income statement for the year. #FixedCost #VariableCost #ManufacturingCosts #OperatingExpense #ManagerialAccounting

Factory overhead of $41,700 consists of Indirect labor of $20,900, Depreciation expense-Factory of $15,900, and Factory utilities of $4,900 a) Compute the manufacturing costs b) Prepare a schedule of costs of goods manufacturing #CostManufacturing #Manufactuirng #CostAccounting

Accounting Help: Prepare an income statement for Rex Manufacturing for the year ended December 31 #IncomeStatement #AccountingHelp #Manufacturing

Alpha Company issued 1,000 shares of $10 par value common stock to stockholders, in exchange for $15,000 cash. Which of the following correctly describes the impact of this transaction on Alpha's financial statements? Common stock is reported at $15,000 in stockholders' equity A $15,000 investment is reported as a long-term investment. Additional paid-in capital of $5,000 is reported in stockholders' equity. Stockholders have invested $25,000 as stockholders' equity #AccountingHelp #CommonStock #JournalEntries #Stocks

Diaz Company owns a machine that cost $ 126,000 and has accumulated depreciation of $ 93,200 . Prepare the entry to record the disposal of the machine on January 1 in each separate situation. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $ 15,900 cash. Diaz sold the machine for $ 32,800 cash. Diaz sold the machine for $ 40,400 cash. #AccountingHelp #Accounting #GainOrLoss #JournalEntries

JM Co has recorded the following distribution costs during the last three months. Month Volume Total Cost Units £ 1 32,000 100,000 2 40,000 120,000 3 50,000 145,000 Assuming a linear relationship, what will be the distribution cost (to the nearest £) in month 4 when the expected activity level is 42,500 units? Tip: Use high/low method to calculate VC and FC #HighLow #AccountingHelp #Accounting #Finance #VariableCosts #FixedCosts

When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation? Total liabilities decrease $50,000. Total assets increase $150,000. Total liabilities increase $150,000. Total assets increase $100,000. #Asset #Liability #Equity #AccountingHelp

Mahomes Company reported the following data at the end of its first year of operations on December 31 #AccountingHelp #BalanceSheet #RetainedEarnings

Accounting: Terrell Company reported the following data at the end of its first year of operations #AccountingHelp #Accounting #IncomeStatements #RetainedEarnings

Accounting Help: The following table shows the effects of transactions 1 through 5 on the assets, liabilities, and equity of Mulan's Boutique. Match the transaction with its probable description #AccountingHelp #Transactions #JournalEntries

Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2023, Diane's wages are $21,000 and she receives dividend income of $1,200. Earned Income Credit Phase-Out Ranges Other Than Joint Filers Joint Filers Qualifying Children Phase-out Begins Phase-out Ends Phase-out Begins Phase-out Ends None $9,800 $17,640 $16,370 $24,210 1 21,560 46,560 28,120 53,120 2 21,560 52,918 28,120 59,478 3 or more 21,560 56,838 28,120 63,398 Calculate Diane's earned income credit using the EIC table in Appendix B. #TaxAccounting #Accounting #EarnedCredit