High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
Q: Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply for…
A: The cost per unit is calculated as total cost of production divided by number of units.
Q: Petoskey Electronics Company manufactures specialized products for boats and recreational vehicles…
A: Here in this question, we are required to prepare differential analysis so that to determine how…
Q: Petoskey Electronics Company manufactures specialized products for boats and recreational vehicles…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: Formula: Net Income = Revenues - expenses Deducting expenses from revenues derives the net income.
Q: What is the total cost of producing 2,000 tires? Select one: a. $88,000 b. $68,000 c. $98,000 d.…
A: Fixed Manufacturing Cost Per Unit at 1000 tires production Level = $12 Total Fixed Manufacturing…
Q: Wooden Grain Co. has organized a new division to manufacture and sell specially designed tables for…
A:
Q: Company Z produces replacement lenses for doorbell security cameras (e.g., Ring, Nest). Currently,…
A: Amount Sales (12,000 units X $ 18 per unit) $ 2,16,000 Less: relevant Costs…
Q: Walastik Company makes and sells a popular household product and its annual sales average 14,000…
A:
Q: During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured…
A: Income statement is a financial statement which is prepared to show the net loss or profit for the…
Q: High Country, Incorporated, produces and sells many recreational products. The company has just…
A: Lets start with basic understanding. There are two type of costing method followed by the…
Q: Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened…
A: Assume that company uses absorption costing- A-Determining the unit product cost- unit product…
Q: High Country, Incorporated, produces and sells many recreational products. The company has just…
A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…
Q: Wooden Grain Co. has organized a new division to manufacture and sell specially designed tables for…
A: In this question, there are 3 requirements: Unit inventorial costs under absorption costing and…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: 1 (a) Compute the unit product cost using absorption costing:
Q: XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The…
A: Solution... Direct material = $30 per unit Direct labor = $14 per unit Variable manufacturing…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: Fixed manufacturing overhead cost 828,000 Divided by: Units produced 46,000 Fixed…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: Solution: Introduction: Absorption Costing is a method of costing to account for not only material…
Q: High Country, Incorporated, produces and sells many recreational products. The company has just…
A:
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: Solution-1 A Absorption Unit…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: 1 ) Under Absorption costing: Calculation of fixed Manufacturing overhead = 100000 Units produced =…
Q: Walsh Automobile Company fabricates automobiles. Each vehicle includes one airflow sensor, which is…
A: Introduction: Operating income is an institution's net income before any financial activity or taxes…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: g) Impact on contribution margin per unit & break-even point if i) Sales volume increases:…
Q: Genuine Spice Inc. began operations on January 1 of the current year. The company produces8-ounce…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product…
A: profit volume analysis table is prepared in order to find the profit of the company when ever…
Q: XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The…
A: Solution... Income Statement under variable costing sales revenue (35,000 * $120)…
Q: g the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 44,000…
A: An income statements statement that shows a company's income and expenses. It also indicates whether…
Q: Walastik Company makes and sells a popular household product and its annual sales average 14,000…
A: The question is related to Shut down point and shut down cost. The details are given. Shutdown point…
Q: Currently, Grab Industrial makes 1,000 tyres every month. For sales to ordinary customers, the…
A: Cost of production is the cost that is incurred by an organization to produce or manufacture a…
Q: Petoskey Electronics Company manufactures specialized products for boats and recreational vehicles…
A: Declaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: ay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a…
A: Calculation of Sales commission per unit Sales commission per unit = Selling price per unit X…
Q: Wiengot Antennas, Inc. produces and sells a unique type of TV antenna; The company has just opened a…
A: Cost Accounting involves three systems of valuation i.e. Absorption costing, Activity Based Costing…
Q: Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The…
A: Income statement: It tells about profitability of the company. All the revenues and expenses of…
Q: Could use some help solving and explaining this problem Thanks!!
A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…
Q: Marionette Company manufactures dolls that are sold to various distributors. The company produces at…
A: Sale price means the price in which the seller is ready to transfer the good to buyer at agreed…
Q: igh Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: 1a: Computation of Unit Product Cost - Absorption Costing Particulars Per unit Unit Product…
Q: During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured…
A: Under Absorption Costing, the Fixed manufacturing cost is considered as product cost and absorbed…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: Fixed manufacturing overhead cost per unit = Total Fixed manufacturing overhead / Units produced =…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: The corporation for better allocation of incurred costs used various cost drivers which helps in…
Q: Aldrin Products has organized a new division to manufacture and sell specially designed tables for…
A:
Q: Genuine Spice Inc. began operations on January 1 of the current year. The company produces8-ounce…
A: All amounts are in dollar($). Since we only answer up to 3 sub-parts, we’ll answer the first 3.…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…
Q: McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The company has just opened…
A: 1.a Calculate unit product cost: 1.b Prepare an income statement using absorption costing method:…
Q: XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The…
A: Computation of Unit Product Cost - Variable Costing Particulars Per unit Unit Product Cost:…
Q: Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce…
A: We know: Fixed costs will not change for the special order. So only the variable costs will be…
Q: Unit inventoriable costs under absorption costing and variable costing. Calculate the volume…
A: Cost Per Unit- Under absorption costing Product Cost include fixed manufacturing cost Under…
Q: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare…
A: Under absorption costing, fixed manufacturing overhead is also considered while calculating the unit…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
Beginning inventory | 0 | |
Units produced | 37,000 | |
Units sold | 32,000 | |
Selling price per unit | $ | 83 |
Selling and administrative expenses: | ||
Variable per unit | $ | 2 |
Fixed (per month) | $ | 559,000 |
Direct materials cost per unit | $ | 14 |
Direct labor cost per unit | $ | 6 |
Variable manufacturing overhead cost per unit | $ | 2 |
Fixed manufacturing overhead cost (per month) | $ | 740,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
1. Assume that the company uses variable costing.
a. Calculate the unit product cost.
b. Prepare a contribution format income statement for May.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (150,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 130,000 units during the month but sold 150,000 units at 500 per unit. The February manufacturing costs and selling and administrative expenses were as follows: a. Prepare an income statement according to the absorption costing concept for the month ending February 28. b. Prepare an income statement according to the variable costing concept for for the month ending February 28. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)?Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippys financial statements for the year ended September 30, management has asked you to review some computations made by Zippys cost accountant. Your working papers disclose the following about the companys operations: Standard costs per drum of product manufactured: Materials: Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of 1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of 94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of 816,480. Factory overhead: 768,000. Required: Calculate the following for September, using the formulas on pages 421422 and 424 (Round unit costs to the nearest whole cent and compute the materials variances for both Surge and for the drums.): 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $79,900 in March and rose to $93,120 in April. It costs Western Trucking $0.15 per mile in variable costs. In March, the delivery trucks were driven a total of 85,000 miles, and in April,. they were driven a total of 96,000 miles. Using this information, answer the following: A. What were the total costs to operate the fleet in March and April, respectively? B. What were the cost per mile to operate the fleet in March and April, respectively?
- Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of 612,500. Each coffee maker sold at a price of 100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of 45,000. Administrative expense totaled 47,500. 2-33 Income Statement Percentages Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.)Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for 100 per case. There is a selling commission of 20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. 0.02 2.00 Natural oils Variable 30ozs. 0.30 9.00 Bottle (8-OZ-) Variable 12 bottles 0.50 6.00 17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 min. 18.00 6.00 Filling Variable 5 14.40 1.2 25 min. 7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed 600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 19,560 Part ABreak-Even Analysis The management of Genuine Spice Inc. wishes to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead, is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: Month Case Production Utility Total Cost January 500 600 February 800 660 March 1,200 740 April 1,100 720 May 950 690 June 1,025 705 Instructions 1. Determine the fixed and variable portions of the utility cost using the high-low method. 2. Determine the contribution margin per ease. 3. Determine the fixed costs per month, including the utility fixed cost from part (1). 4. Determine the break-even number of cases per month. Part BAugust Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at 100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory: Cases Cost Estimated finished goods inventory, August 1 300 12,000 Desired finished goods inventory, August 31 175 7,000 Materials Inventory: Cream Base (ozs.) Oils (ozs.) Bottles (bottles) Estimated materials inventory, August 1 250 290 600 Desired materials inventory, August 31 1,000 360 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in tile cost per unit or estimated units per case operating data from January. Instructions 5. Prepare the August production budget. 6. Prepare the August direct materials purchases budget. 7. Prepare the August direct labor budget. Round the hours required for production to the nearest hour. 8. Prepare the August factory overhead budget. 9. Prepare the August budgeted income statement, including selling expenses. Part CAugust Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the Beginning of the month. Actual data for August were as follows: Actual Direct Materials Price per Unit Actual Direct Materials Quantity per Case Cream base 0.016 per oz. 102 ozs. Natural oils 0.32 per oz. 31 ozs. Bottle (8 oz.) 0.42 per bottle 12.5 bottles Actual Direct Labor Rate Actual Direct Labor Time per Case Mixing 18.20 19.50 min. Filling 14.00 5.60 min. Actual variable overhead 305.00 Normal volume 1,600 cases The prices of the materials were different than .standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rale to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less titan standard. Instructions 10. Determine and interpret the direct materials price and quantity variances for the three materials. 11. Determine and interpret the direct labor rate and time variances for the two departments. Round hours to the nearest hour. 12. Determine and interpret the factory overhead controllable variance. 13. Determine and interpret the factory overhead volume variance. 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,250 cases of production used in the budgets for parts (6) and (7)?
- Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.Olin Company manufactures and distributes carpentry tools. Production of the tools is in the mature portion of the product life cycle. Olin has a sales force of 20. Salespeople are paid a commission of 7 percent of sales, plus expenses of 35 per day for days spent on the road away from home, plus 0.50 per mile. They deliver products in addition to making the sales, and each salesperson is required to own a truck suitable for making deliveries. For the coming quarter, Olin estimates the following: On average, a salesperson travels 6,000 miles per quarter and spends 38 days on the road. The fixed marketing and administrative expenses total 400,000 per quarter. Required: 1. Prepare an income statement for Olin Company for the next quarter. 2. Suppose that a large hardware chain, MegaHardware, Inc., wants Olin Company to produce its new SuperTool line. This would require Olin Company to sell 80 percent of total output to the chain. The tools will be imprinted with the SuperTool brand, requiring Olin to purchase new equipment, use somewhat different materials, and reconfigure the production line. Olins industrial engineers estimate that cost of goods sold for the SuperTool line would increase by 15 percent. No sales commission would be incurred, and MegaHardware would link Olin to its EDI system. This would require an annual cost of 100,000 on the part of Olin. MegaHardware would pay shipping. As a result, the sales force would shrink by 80 percent. Should Olin accept MegaHardwares offer? Support your answer with appropriate calculations.Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?