Finch Company makes fine jewelry that it sells to department stores throughout the United States. Finch is trying todecide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow.Bracelet ABracelet BCost of materials per unit$28$ 34Cost of labor per unit4444Advertising cost per year9,4007,900Annual depreciation on5,7005,400existing equipmentRequireda. Identify the fixed costs and determine the amount of fixed cost for each product.b. Identify the variable costs and determine the amount of variable cost per unit for each product.c. Identify the avoidable costs and determine the amount of avoidable cost for each product.Complete this question by entering your answers in the tabs below.Required Required RequiredABCIdentify the avoidable costs and determine the amount of avoidable cost for each product.Avoidable CostsBracelet BraceletAB< Required BRequired C >

## Avoidable CostsAvoidable costs are those that can be eliminated if a particular product is not…

Answered: Finch Company makes fine jewelry that…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15P: One of the tennis rackets that Ace Sporting Goods manufactures is a titanium model (Slam) that sells...

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Imperial Jewelers is considering a special order for 20 handcrafted gold bracelets to be given as gifts tomembers of a wedding party. The normal selling price of a gold bracelet is $189.95 and its unit productcost is $149.00 as shown below:Direct materials .................................... $ 84.00Direct labor ........................................... 45.00Manufacturing overhead ...................... 20.00Unit product cost .................................. $149.00Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry isproduced in any given period. However, $4.00 of the overhead is variable with respect to the numberof bracelets produced. The customer who is interested in the special bracelet order would like specialfiligree applied to the bracelets. This filigree would require additional materials costing $2.00 perbracelet and would also require acquisition of a special tool costing $250 that would have no otheruse once the special order is…
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b) Paste Corporation has established new plant for the production of new product called “Diazinon”. There are two different manufacturing methods available to produce Diazinon. Either by using a process or an order base method. The assembling technique won't influence the quality or deals of the item. The evaluated manufacturing expenses of the two strategies are as per the following:Process base Order baseVariable manufacturing cost per unit..................... Rs14.00 Rs.17.60Fixed manufacturing cost per year ......................Rs. 2,440,000 Rs. 1,320,000 The organization's statistical surveying office has suggested an initial selling cost of Rs.35 per unit for Diazinon. The yearly fixed selling and admin costs of the Diazinon are Rs.500, 000. The variable selling and regulatory costs are Rs. 2 per unit. Required: I. CM ratio and variable expenses ratio. If Paste Corporation uses the:1. Process base manufacturing method.2. Order base manufacturing method.II. Break-even point in…
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Edmund Supplies Company sold 3,170 metal connectors on account to Door Incorporated for $200 each on September 15. Each metal connector costs Edmund $150 to make. Door has 60 days to return the unused goods. Edmund believes that Door will ultimately return 75 of the connectors. On September 29, Door returns 50 connectors. Edmund has a September 30 fiscal year end. At year end, Edmund believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Edmund expects to be able to resell these goods for a profit. Instructions Prepare the following journal entries on the books of Edmund Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.
Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater markers at $3.84 per package. Annual costs for the production and sale of this quantity are shown in the table. Direct materials $ 256,000 Direct labor 64,000 Overhead 192,000 Selling expenses 80,000 Administrative expenses 53,000 Total costs and expenses $ 645,000 A new wholesaler has offered to buy 33,000 packages for $3.37 each. These markers would be marketed under the wholesaler’s name and would not affect Jones Products’s sales through its normal channels. A study of the costs of this additional business reveals the following: Direct materials costs are 100% variable. Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 1½ times the usual labor rate. 25% of the normal annual overhead costs are fixed at any production level from 150,000…
Trinity product Limited makes and sells three types of electronic security systems for which the following information is available Standard cost and selling price per unitDay Scan Night scanOmni scanGH¢GH¢GH¢Material70110155Manufacturing labour405570Installation labour243244Variable overheads162028Selling price250320460 Fixed cost for the period are GH¢450,000 and installation labour, which is highly skilled is available for 25,000 hours only in a period and is paid GH¢8 per hour. Both manufacturing and installation labour are variable cost. The maximum demand for the period is: Day scan 2,000 units; Night scan 3,000 units; Omni scan 1,800 units.Requiredd) Having carried out an investigation of the availability of installation labour, the firm thinks that by offering GHS 12 per hour, additional installation would become available and thus overcome the labour shortage. Based on the result obtained above, you are required to advice the firm whether or not to implement this proposal.

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