Borkenstick makes a very popular undyed cloth sandal in one style, but in Regular and Deluxe. The Regular sandals have cloth soles and the Deluxe sandals have cloth covered wooden soles. Borkenstick is preparing its budget for June 2012, and has estimated sales based on past experience. Other information for the month of June follows:
Borkenstick uses a FIFO cost flow assumption for finished goods inventory. All the sandals are made in batches of 50 pairs of sandals. Borkenstick incurs manufacturing overhead costs, marketing and general administration, and shipping costs. Besides materials and labor, manufacturing costs include setup, processing, and inspection costs. Borkenstick ships 40 pairs of sandals per shipment. Borkenstick uses
…show more content…
Manufacturing Overhead Costs Budget For the Month of June 2012 Total Machine setup (Regular 43 batches1 2 hrs./batch + Deluxe 59 batches2 3 hrs./batch) $12/hour Processing (31,400 DMLH $1.20) Inspection (5100 pairs x $0.90 per pair) Total
1
Total $107,500 206,500 $314,000
$ 3,156 37,680 4,590 $45,426
Regular: 2,150 pairs ÷ 50 pairs per batch = 43; 2Giant: 2,950 pairs ÷ 50 pairs per batch = 59
f.
Unit Costs of Ending Finished Goods Inventory For the Month of June, 2012 Regular Cost per Input per T Cloth Wood Direct manufacturing labor Machine setup Processing Inspection Total
1
Deluxe Input per Unit of Output 1.5 yd 2 bd-ft 7 hrs 0.06 hr1 7 hrs 1 pair Total $ 5.25 10.00 70.00 0.72 8.40 0.90 $95.27
Unit of Input $ 3.50 5.00 10.00 12.00 1.20 0.90
Unit of Output 1.3 yd 0 5 hr. 0.04 hr. 1 5 hrs 1 pair
otal $ 4.55 0 50.00 0.48 6.00 0.90 $61.93
2 hours per setup ÷ 50 pairs per batch = 0.04 hr. per unit; 3 hours per setup ÷ 50 pairs per batch = 0.06 hr. per unit.
Ending Inventories Budget June, 2012 Quantity Cost per unit Direct Materials Cloth Wood Finished goods Regular Deluxe Total ending inventory g. Cost of Goods Sold Budget For the Month of June, 2012 Beginning finished goods inventory, June 1 ($15,500 + $61,750) Direct materials used (requirement c) Direct manufacturing labor (requirement d)
1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.
investing in plant upgrade options A and C and also consolidating the production of 500 models/styles of branded footwear in a single 12-million pair plant in the Asia-Pacific (to only incur the payment of $14 million in production run setup costs one time).
Q2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) was allocated to planned production? What was the actual per unit cost of production and shipping?
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
15 goes into 15 once and 15 goes into 60 four times resulting as 80/4 leaving us with the answer of 20. Observe the example below: 80 ml (amount) X 15 gtts/ml (drip set) 80 X 15 1 = 60 4= 60 (divided my time in minutes – over 1 hour) 80 X 1 = 4 80 4 = 20 gtts/min
Second, the manufacturing order costs for non-stocked items was calculated by dividing total manufacturing order costs for non-stocked items by the number of orders for non-stocked products. Non-stocked products have additional costs associated with processing orders that went above and beyond the costs associated with a stocked product. The third step involved determining what the S"A allocation factor would be for calculating the S"A volume related costs. This allocation factor would then be applied to manufacturing COGS. The fourth and final step involved the calculation of the operating profit based on backing out volume related costs from sales revenues followed by deducting S"A and manufacturing order costs from the resulting gross margin to arrive at a operating profit.
330-10-30330-10-30-1 The primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset. As applied to inventories, cost means in principle the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. It is understood to mean acquisition and production cost, and its determination involves many considerations. 330-10-30330-10-30-2 Although principles for the determination of inventory costs may be easily stated, their application, particularly to such inventory items as work in process and finished goods, is difficult because of the variety of considerations in the allocation of costs and charges.
“Companies can choose to use the accounting job order costing method when they have a single product line or numerous products to manufacture. However, it is less costly and less time-consuming if they elect to use process costing when calculating the manufacturing of a single product line. With similarities
Wilkerson employs a Normal Cost System, which means that they use predetermined overhead rates along with actual costs for direct material and direct labor. Normal costing systems are appropriate when overhead costs are a relatively small percentage of total manufacturing costs and product diversity is limited. For Wilkerson, normal costing does not make sense. Overhead costs make up over 50 percent of total manufacturing costs and their product offering is relatively more diverse. This indicates that the current accounting system in place may be distorting costs significantly. Supporting data:
A. Assuming the number of hours Anna Sheen will spend developing the profile section will = 4; Ralph Armentrout’s optimal stocking quantity is 516, as portrayed in the table below:
Click, clack, click, clack the unknown child walks down stairs and wanders out the front door. There are plenty of logical reasons behind why Neil Gaiman selected not to reveal Bod's name before he came to the graveyard. One possible reason is that he wanted the readers to see Bod as being the unknown child when he wandered into the graveyard. Having the name Nobody doesn't connect Bod to his old life. The name Nobody describes Bod perfectly. Nobody knew who Bod was when he came to the graveyard, and still the only a few people that know him live in the graveyard.. He is not known as being the child whose family was murdered. When Bod the unknown child came to live with the forgotten people and started his new life, Bod was separated from
The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:
Peter’s Peripherals assembles multimedia upgrade kits --- sets of components for adding sound and video to desktop computers. The demand for their kits for the next four quarters is estimated in the table below. Unit manufacturing cost for each kit is $160. Holding costs on each kit is $80 per quarter. Any kit that must be delivered late is assessed a backorder cost of $120. Each worker is capable of finishing 10 kits per quarter. If the company chooses to vary work force levels, it will incur costs of $400 for each additional worker; $600 for each termination. The company currently has 28 employees.
5.000,00 $ 7.500 151.250 20 35.000,00 $ 12.500 321.250 26 $ 58,20 $ 110.000,00 4.000 333.500 83 115,38
1993 Operating Cost Structure ($/metric ton except where noted) Average Total electricity and alumina cost Other raw materials Plant power and fuel Consumables Maintenance Labor Freight General and administrative Total 683