provide correct answer pls 12Marigold produces four kinds of ice cream from a single process. The totaljoint costs of $72,400 resulted from 3,300 gallons of vanilla, 2,800 gallons ofstrawberry, 2,100 gallons of chocolate, and 1,100 gallons of Neapolitan icecream. Marigold sells the vanilla ice cream for $3.00 a gallon, and the otherthree flavours are sold for $3.50 per gallon.How much of the joint cost will be allocated to each product, if the salesvalue at split-off method is used?Davis Company produces a common machine component for industrialequipment in three departments: molding, grinding, and finishing. Thefollowing data are available for November:Molding Grinding FinishingDirect materials$143,300 $15,700 $10,200Direct labor13,600 34,200 22,80019,400Applied overhead 17,000 135,900During November, 8,800 components were completed. There is nobeginning or ending WIP in any department.Required:1. Prepare a schedule showing, for each department, the cost of directmaterials, direct labor, applied overhead, product transferred in from a priordepartment, and total manufacturing cost.2. Calculate the unit cost.

Answer of Question 1: Step 1: Joint CostJoint costs are incurred in producing multiple products or…

Answered: 1 2 Marigold produces four kinds of ice…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11PB: Strawberry Sweet Company makes a variety of jams and jellies. During June, 55,000 gallons of...

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Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?
Strawberry Sweet Company makes a variety of jams and jellies. During June, 55,000 gallons of strawberry mash was processed at a joint cost of $40,000. This produced 42,000 gallons of preserve-grade mix and 4,000 gallons of Strawberry juice for jelly. The juice could be processed further into energy drinks, and the preserve mix could be processed further into ice cream flavoring. Information on these items is shown: A. Assume that the joint cost is allocated to the products based on the physical quantity of output of each product. How much joint cost should be assigned to each product? B. How much joint cost should be assigned to each product if the relative sales value allocation method is used? C. Which products should be processed further?
Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are 8, 6, and 9, respectively. a. Formulate and solve for the recommended production quantities. b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management. c. What are the right-hand-side ranges? Interpret these ranges for company management. d. If more time could be made available on the grinder, how much would it be worth? e. If more units of component 3 can be sold by reducing the sales price by 4, should the company reduce the price?
Carsen Company produces handcrafted pottery that uses two inputs: materials and labor. During the past quarter, 24,000 units were produced, requiring 96,000 pounds of materials and 48,000 hours of labor. An engineering efficiency study commissioned by the local university revealed that Carsen can produce the same 24,000 units of output using either of the following two combinations of inputs: The cost of materials is 8 per pound; the cost of labor is 12 per hour. Required: 1. Compute the output-input ratio for each input of Combination F1. Does this represent a productivity improvement over the current use of inputs? What is the total dollar value of the improvement? Classify this as a technical or an allocative efficiency improvement. 2. Compute the output-input ratio for each input of Combination F2. Does this represent a productivity improvement over the current use of inputs? Now, compare these ratios to those of Combination F1. What has happened? 3. Compute the cost of producing 24,000 units of output using Combination F1. Compare this cost to the cost using Combination F2. Does moving from Combination F1 to Combination F2 represent a productivity improvement? Explain.
M & Z Creameries, Corp. process milk and sugar to make vanilla ice cream. They sell their ice cream in large one-gallon containers to schools, hospitals, nursing homes, and restaurants. Each batch produces 1,700 gallons of ice cream at a cost of $840 per batch. M & Z Creameries, Corp. sells the one-gallon containers for $23.00 each and spends $0.35 for each plastic container. M & Z Creameries, Corp. has started to determine the feasibility of adding chocolate and strawberries and sell pint-size portions at local supermarkets.Further processing of each batch of ice cream could produce 24,400 pint-sized portions. A recent market study determined a demand existed for this type of product. M & Z Creameries, Corp. could sell each pint-sized portion for $2.70. Additional packaging would cost $0.30 per pint, and the additional materials would cost $0.25 per pint. There would be no change in fixed costs.Should they continue to sell only one-gallon size containers of vanilla ice…
Atlas Foods produces three supplemental food products simultaneously through a refining process costing $93,000. The joint products, Alfa and Betters, have a final selling price of $4 per pound and $10 per pound, respectively, after additional processing costs of $2 per pound of each product are incurred after the split-off point. Morefeed, a by-product, is sold at the split- off point for $3 per pound. Additional information are as follows: Alfa - 10,000 pounds of Alfa, a popular but relatively rare grain supplement of having a caloric value of 4,400 calories/pound. Betters - 5,000 pounds of Betters, a flavouring material high in carbohydrates with a caloric value of 11,200 calories/pound. Morefeed - 1,000 pounds of Morefeed, used as a cattle feed supplement with a caloric value of 1,000 calories/pound. Questions: 1. Assuming Atlas Food inventories Morefeed, the by-product, the joint cost to be allocated to Alfa, using the RV method is?
Healthy Eats produces three products from a single raw material. The total cost is $160,000 and the number of units for each product is as follows: Product A: 10,000 units Product B: 10,000 units Product C: 15,000 units Product A can be sold at the split-off point for $4 per unit, or it can be processed further at a cost of $25,000 and then sold for $10 per unit. Should product A be sold at the split-off point or processed further? Why?
The Redfield Company manufactures three products: chairs, big tables, and little tables. Each chair requires 2 hours in the assembly room and 4 hours in the painting center. Each big table requires 4 hours in assembly and 2 hours in painting. The corresponding values for little tables are 3 hours and 2 hours. The company has available 180 hours of assembly time and 200 hours of painting time. The contribution to profit is $8 for each chair, $10 for each big table, and $7 for each little table. There is a requirement that at least 50 tables (big and/or little) be produced or notables be produced. The objective is to maximize profit contribution.
Carlton's Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $8 and a per-unit direct labor cost of $75. It also expects to manufacture 30,000 units of Shapes, which has a per-unit material cost of $12 and a per-unit direct labor cost of $50. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $10.79 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: Machine Setups $67,500 Machine Processing 2,000,000 Material Requisitions 90,000 Total Overhead $2,157,500 The cost driver for each cost pool and its expected activity is shown: Strands Shapes Total Machine Setups 90 180 270 Machine Hours 140,000 60,000 200,000 Parts Requisitions 80…
Hayden Co. manufactures baseball caps that sell for $40 each. Each cap uses $14 in direct materials and $5 in direct labor per unit. Hayden has two activities: Cutting, which is applied at the rate of $5 per machine hour, and , Assembly which is applied at the rate of $25 per batch. This month, Hayden made 400 caps, using 1,000 machine hours in 40 batches. What is the total manufacturing cost for one cap? $21 $8 $35 $6 < is this?
Henry’s Kitchens makes two types of sandwich makers: Basic and Deluxe. The company expects to manufacture 70,000 units of Basic, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30,000 units of Deluxe, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Basic will use 140,000 machine hours and Deluxe will require 60,000 machine hours. Historically, the company has used the traditional overhead allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: Machine setups $ 90 000 Machine processing 4 000 000 Material requisitions 100 000 Total overhead $ 4 190 000 The cost driver for each cost pool and its expected activity is shown: Basic Deluxe Total Machine setups 100 200 300 Machine hours…
Henry’s Kitchens makes two types of sandwich makers: Basic and Deluxe. The company expects to manufacture 70,000 units of Basic, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30,000 units of Deluxe, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Basic will use 140,000 machine hours and Deluxe will require 60,000 machine hours. Historically, the company has used the traditional overhead allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: Machine setups $ 90 000 Machine processing 4 000 000 Material requisitions 100 000 Total overhead $ 4 190 000 The cost driver for each cost pool and its expected activity is shown: Basic Deluxe Total Machine setups 100 200 300 Machine hours 140…

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