Questions On Managerial Accounting And Smith Manufacturing

The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the

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“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

Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

This Sample Examination represents the Final Examination that students complete in Week Six. As in the following Sample Examination, the Final Examination includes questions that assess the course objectives. Although the Sample Examination includes one question per objective, the Final Examination includes three questions per course objective.

The Ilarion Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $117,000 of manufacturing overhead for an estimated allocation base of $90,000 direct labor dollars. The company has provided the following data in the form of an Excel worksheet:

A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 60 units per day. The setup cost for a production run is $ 125.00. The cost of holding is $ 4.00 per unit per year. The demand for the item is continuous and constant and is 3,900 units per year. (Note: The demand occurs only when the company is operating, that is, 5 days a week for 52 weeks). Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.

The fixed overhead is forecast as R450 000. The fixed overhead cost rate is R5 per direct labour hour, calculated as R450 000/90 000 =

iii. Determine the amount of cost that should be assigned to the ending work in process inventory.

Accounting to determine which items or jobs are generating the most net income can be extremely important to financial managers in today’s economy. Managers must determine which products are making performing the best so that they can capitalize on profits. This also helps to know when it should cut its losses. There are three very useful methods of identifying costs associated to a particular item which are job order costing, activity based costing (ABC), process costing. Job order costing isolates costs to a particular job. ABC compares multiple items which are manufactured. Process costing assesses items which are massed produced and provides analysis to the cost through the various stages from beginning to completion. This essay will explain each of these methods and then provide examples for each of them.

a service department’s costs have been allocated, costs are not reallocated back to it under

| It is assumed that the activities of Ford Motor Corporation can be distinguished from those of General Motors because of the

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Due the proposal KCPL have received from the APL for a period of three years. This will help the KCPL to use the surplus capacity of 70 tonnes. The APL will bring with it the management knowledge of managing large company, process improvement and technical expertise, which will help KCPL to improve its process, reduce cost and again access to other regional market. There is also changes of losing its present contract with Pearson, the supply 50 tonnes. Even if the Person ends its contract with KCPL, we should go ahead in singing the deal with APL.