2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final produc are often volatile. Change the data area of your worksheet to match the following: A в Chapter 11: Applying Excel 1. Data Exhibit 11-7 Santa Maria Wool Cooperative Cost of wool 4 213,000 6. Cost of separation process 40,000 7 Sales value of intermediate products at split-off point Undyed coarse wool 8 116,000 Undyed fine wool 148,000 Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products: 10 58,000 12 Undyed coarse wool $ 50,000 13 Undyed fine wool 60,000 14 Undyed superfine wool 10,000 15 Sales value of end products: 16 Dyed coarse wool 149,000 17 Dyed fine wool $ 188,000 18 Dyed superfine wool 96,000 %24 2.

2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final produc are often volatile. Change the data area of your worksheet to match the following: A в Chapter 11: Applying Excel 1. Data Exhibit 11-7 Santa Maria Wool Cooperative Cost of wool 4 213,000 6. Cost of separation process 40,000 7 Sales value of intermediate products at split-off point Undyed coarse wool 8 116,000 Undyed fine wool 148,000 Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products: 10 58,000 12 Undyed coarse wool $ 50,000 13 Undyed fine wool 60,000 14 Undyed superfine wool 10,000 15 Sales value of end products: 16 Dyed coarse wool 149,000 17 Dyed fine wool $ 188,000 18 Dyed superfine wool 96,000 %24 2.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 5EA: Assume you are the department B manager for Marleys Manufacturing. Marleys operates under a...

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Assume you are the department B manager for Marleys Manufacturing. Marleys operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only o department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. (Hint: It may be helpful to perform a vertical analysis.)
Listed below are a company’s monthly unit costs to manufacture and market a particular product.Unit Costs Variable Cost Fixed CostsDirect materials P2.00 Direct labor 2.40 Indirect Manufacturing 1.60 P1.00Marketing 2.50 1.50The company must decide to continue making the product or buy it from an outside supplier. The supplier has offered to make the product at the same level of quality that the company can make it. Fixed marketing costs would be unaffected, but variable marketing costs would be reduced by 30% if the company were to accept the proposal. What is the maximum amount per unit that the company can pay the supplier without decreasing its operating income? • P5.25 • P7.75 • P6.75 • P8.50 • None of the above
The table below shows cost data for producing different amounts of cleaning products. Use the given information to answer the questions below. Quantity Total Cost Variable Cost Marginal Cost Average Variable Cost Average Total Cost in $ in $ in $ in $ in $ 344 0 354 10 384 40 444 100 534 190 644 300 0 5 10 15 20 25 A What is the profit (loss) at that level of production? 2 6 12 18 22 How many cleaning products would a competitive firm produce if the market price was $18? 2.00 4.00 6.67 9.50 12.00 70.80 38.40 29.60 26.70 25.76
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MTK to review this question Consider the following information relating to the cost of a product supplied internally by a selling division to a buying division: Production capacity (units) Price to buy sell externally Cost per unit 2,000 $310 Direct materials $30 Direct labour (all variable) 10 Variable overhead 20 Text overhead 5 Total cost $65 Assume that the internal customer would like to buy the entire production capacity of 2,000 units. If the seller can sell only 600 units externally, wh acceptable transfer price per unit? a. $310 b. $65 c. $60 d. indeterminable a. Ob. Oc Od
Division X makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers.... Variable cost per unit. Total fixed costs....... Capacity in units. $50 $30 Select one: O a. $50 O b. $49 O c. $46 O d. $30 $400,000 25,000 Division Y of the same company would like to use the part manufactured by Division X in one of its products. Division Y currently purchases a similar part made by an outside company for $49 per unit and would substitute the part made by Division X. Division Y requires 5,000 units of the part each period. Division X has ample excess capacity to handle all of Division Y's needs without any increase in fixed costs and without cutting into outside sales. According to the formula in the text, what is the lowest acceptable transfer price from the standpoint of the selling division?
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Mozaic Inc. has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system (CAM) or a labor-intensive production system (LIP). The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: www CAM System LIP System Direct Material $5.00 $5.60 Direct Labor (DLH) 0.5 DLH x $12 $6.00 0.8 DLH x $9 $7.20 Variable Overhead 0.5 DLH x $6 $3.00 0.8 DLH x $6 $4.80 Fixed Overhead* $2,440,000 $1,320,000 * These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company's marketing research department has recommended an introductory unit sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit sold. (Ignore income taxes.) Required: 1. Describe the circumstances under which the firm should employ each of the two manufacturing methods. 2. Identify some business…
Please show me your solution so I can check if mine's correct. Thank you. ABC Corporation manufactures products W, X,Y, AND Z from a joint process. Additional information is as follows: Sales If processed further Units Value at Additional Sales Product Produced Split-off Costs Value W 6,000 P 80,000 P 7,500 P 90,000 X 5,000 60,000 6,000 70,000 Y 4,000 40,000 4,000 50,000 Z 3,000 20,000 2,500 30,000 Total 18,000 P200,000 P20,000 P240,000 Assuming that total joint costs of P160,000 were allocated using the relative sales value at split- off approach, what joint costs were allocated to each product? W________________ X__________________ Y________________ Z __________________
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