e outdoor dining company specialize in producing a set of wood patio furniture, consisting of tables and four chairs. The set about you enjoys great popularity and the company has ample orders to keep production going. Its full capac
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The outdoor dining company specialize in producing a set of wood patio furniture, consisting of tables and four chairs. The set about you enjoys great popularity and the company has ample orders to keep production going. Its full capacity of 1900 sets per year. Annual cost data at full capacity follow: Direct labour. $207,000 Advertising $40,600 Factory Supervision $42,400 Property taxes, factory building $6,300 Sales commissions $49,100 Insurance, factory $2,200 Depreciation, administrative office equipment $2,600 Lease cost, factory equipment $14,900 Indirect materials, factory $2,800 Depreciation, factory. $29,300 Administrative office supplies $2,100 Direct materials used ( wood, bolts, etc.) $48,900 Utilities, factory $27,800 Required:
Enter the dollar amount of each cost item under the appropriate heading. Note that each cost item is satisfied in two ways first in either variable or fixed with respect to the number of units, produced, and sold in the second as either selling and administrative cost or project product cost.
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- Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of 45 each next year. Total selling expense is projected at 22,000, and total administrative expense is projected at 53,000. Required: 1. Prepare an income statement in good form. 2. What if Jean and Tom increased the price to 50 per cleaning and no other information was affected? Explain which line items in the income statement would be affected and how.Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of cost of services sold in good form. 2. How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next months sales are in the finished goods inventory. Ingles also purchases sufficient materials to ensure that materials inventory is 60 percent of the following months scheduled production. Ingless sales budget in units for the next quarter is as follows: Ingless ending inventories in units for July 31 are as follows: Required: 1. Calculate the number of tables to be produced during August. 2. Disregarding your response to Requirement 1, assume the required production units for August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is 4,000 units. Compute the number of table legs to be purchased in August. 3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees will be required for the Assembly Department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.) (CMA adapted)
- The Outdoor Dining Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 2,000 sets per year. Annual cost data at full capacity follow: Direct labour Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory Administrative office supplies Direct materials used (wood, bolts, etc.) Utilities, factory $ $ $ $ Ś $ $ $ $ Ś $ $ $ 180,200 37,300 46,900 6,900 54,300 2,900 3,200 13,900 2,700 22,400 1,900 52,200 25,700The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 4,100 sets per year. Annual cost data at full capacity follow: Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building Administrative office supplies (billing) Administrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Cost Item Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Ioann noot fantoni Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two…Shulmans Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 4,300 bookcases per year. Annual cost data at full capacity follow: Direct materials used (wood and glass) $ 435,200 Administrative office salaries $ 114,900 Factory supervision $ 70,800 Sales commissions $ 68,800 Depreciation, factory building $ 105,100 Depreciation, administrative office equipment $ 2,360 Indirect materials, factory $ 22,900 Factory labor (cutting and assembly) $ 91,200 Advertising $ 101,300 Insurance, factory $ 6,420 Administrative office supplies (billing) $ 4,420 Property taxes, factory $ 19,700 Utilities, factory $ 48,300 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is…
- Calla Company produces skateboards that sell for $55 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81,800 skateboards per year. Annual costs for 81,800 skateboards follow. Direct materials $ 948,880 Direct labor 597,140 Overhead 952,000 Selling expenses 542,000 Administrative expenses 480,000 Total costs and expenses $ 3,520,020 A new retail store has offered to buy 13,200 of its skateboards for $50 per unit. The store is in a different market from Calla's regular customers and would not affect regular sales. A study of its costs in anticipation of this additional business reveals the following: Direct materials and direct labor are 100% variable. 40 percent of overhead is fixed at any production level from 81,800 units to 95,000 units; the remaining 60% of annual overhead costs are variable with respect to volume. Selling expenses are 60% variable with respect to number of…Baby Doll Shop currently manufactures wooden parts for dollhouses. Itssole worker is paid $8.10 an hour and, using a handsaw, can produce a year's required production (1,600 parts) in just eight weeks of 40 hours per week. That is, the worker averages five parts per hour when working by hand. The shop is considering the purchase of a power band saw with associated fixtures in order to improve the productivity of this operation. Three models of power saw could be purchased: Model A (economy version), Model B (high-powered version), and Model C (deluxe high-end version). The major operating difference between these models is their speed of operation. The investment costs, including the required fixtures and other operating characteristics, are summarized as follows: Assume that MARR = 10%. Are there enough potential savings to make iteconomical to purchase any of the power band saws? Which model is most economical according to the rate-of-return principle? (Assume that any effect of…Please use the following information for questions 1-4: Koyohaus makes and sells designer houseplants. Last year, Koyohaus sold 2,500 plants and raked in ?$200,000 of sales. The firm’s average operating assets last year were $150,000. Information on Koyohaus’ operating costs are provided below: Direct Materials: $20,000 Direct Labor: $60,000 Variable MOH: $10,000 Variable Selling and Admin: $3,000 Fixed MOH: $20,000 Fixed Selling and Admin: $5,000 Total Operating Expenses: $118,000 Further, Forster’s, a home improvement chain, is considering acquiring Koyohaus but would require a minimum rate of return on investment of 10%. What was Koyohaus’ residual income last year? $15,000 $82,000 $67,000 $50,000 2. True or False: Based on Koyohaus’ residual income last year, Forster’s should acquire Koyohaus as a new investment. True False
- Sunshine Company sells custom made surf boards in California. The finance manager has supplied the following data from its activity-based costing system: Overhead Costs Staff Salaries $500,000 Selling and administration overheads 200,000 Total Overhead Costs $700,000 Activity Cost Pool Activity Measure Total Activity for the Year Product design Number of new designs 500 new designs Order Processing Number of Customer orders 700 orders Customer Support Number of Customers 400 customers Others Organization sustaining activity Not applicable Distribution of Resource Consumption across Activities Product Design Order Processing Customer Support Other Total Staff Salaries 40% 30% 20% 10% 100% Selling and administration overheads 30% 10% 20% 40% 100% During the year Sunshine Company completed three individual orders for a new customer, Tarpaper…Swifty Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Swifty’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,100 Insurance on factory building 1,800 Raw materials (plastics, polystyrene, etc.) 80,600 Utility costs for factory 900 Supplies for general office 400 Wages for assembly line workers 67,900 Depreciation on office equipment 900 Miscellaneous materials (glue, thread, etc.) 1,500 Factory manager’s salary 6,600 Property taxes on factory building 500 Advertising for helmets 14,100 Sales commissions 10,400 Depreciation on factory building 1,600 Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per helmet $The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 4,000 sets per year. Annual cost data at full capacity follow: Direct labor Advertising Factory supervision Property taxes, factory building. Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building Administrative office supplies (billing) Administrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or…