method of cost estimation, total fixed costs are
Q: Identify the relevant incremental cash flows below: (Select all the choices that apply.) A. Capital…
A: Free cash flows are Cash that is left over after a company has paid for its operating and capital…
Q: What would be the journal entry to close out a $2,000 credit balance in Service Revenues for Smith…
A: Journal Entry to close out refers to transferring the nominal accounts to Income Summary(PorL) at…
Q: Considering that the credit policy of Steward (Pty) Ltd is 90 days, which one of the following…
A: Debtor collection period is used to find average number of days taken to receive payment from…
Q: Long-term capital assets with a(n) _____ may not be depreciable. O finite life O indefinite life O…
A: All long term capital assets are depreciated because of usage and passage of time.
Q: do we include the 15% vat in our T-accounts
A: A follow-up question.Vat is the tax amount which is required to be chargeable on the purchases and…
Q: Benson Designs has prepared the following estimates for a long-term project it is considering. The…
A: Net present value is computed as present value of cash inflows less initial investment.Internal rate…
Q: In 2022, Jack, age 12, has interest income of $7,500 on funds he inherited from his aunt and no…
A: Answer:- Taxable income meaning:- The amount of revenue that is subject to the taxation, is called…
Q: A small firm has a beginning inventory of $52,000 as of January 1, 2020, and the following…
A: Inventory turnover is measured by a ratio that shows how many times inventory is sold and then…
Q: Current Attempt in Progress Wildhorse Sporting Goods has two divisions: Sporting Goods and Camping…
A: Cost accounting is a mechanism adopted by entities to find out the true cost of a specific service,…
Q: Required: 1. Use activity-based costing to determine a unit cost for each produc
A: ACTIVITY BASED COSTINGActivity-Based Costing (ABC) is used to identify, describe, assign costs to,…
Q: Question 2 (L03) Yates Corp. wants to develop a cost equation for its administrative costs. The…
A: Lets understand the basics.In high low method, total costs are separeted in fixed costs and variable…
Q: M Bank as at 31st December 2017 Bills discounted Rebate on bills discounted (1 January 2017)…
A: As per the given information:
Q: Q5): ABC Ltd makes three products and reviewing the profitability of its product line. You are given…
A: Marginal cost statement refers to those statements which reflects the contribution of fixed and…
Q: or the year ended December 2025. (Enter negative am Income the number e.g. -45 or parentheses e.g.…
A: Income Statement Is The One Of Three Major Financial Statement. It Shows The Revenue, Expenses And…
Q: Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of…
A: a) Calculation of Shares outstanding on 9 Feb No of shares outstanding on 31 Dec-2019 = 39000less:…
Q: For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:…
A: Financial Statements -Financial Statement includes income Statement, Statement of Retained Earnings,…
Q: Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the…
A: Traditional Costing System: A traditional costing system is a method used to allocate manufacturing…
Q: 1. Sales budget Create a sales budget for the 1st quarter that shows expected sales revenue for…
A: Production budget is the statement which is prepared to determine the estimated units to be produced…
Q: Hansel Corporation’s condensed balance sheets appear below: 20X3 20X2 20X1 Assets:…
A: Trend Analysis -Trend Analysis is a technique of calculating and comparing multiple periods of the…
Q: Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…
Q: On January 1, 2024, Red Flash Photography had the following balances: Cash, $12,000; Supplies,…
A: Closing Entries -Closing Entries are required to close the temporary accounts in the financial…
Q: The following information applies to the questions displayed below.] Warnerwoods Company uses a…
A: There are mainly Four Methods which are LIFO, FIFO, Weighted Average, and Specific Identification…
Q: When Job 117 was completed, direct materials totaled $17,100; direct labor, $22,230; and factory…
A: Job cost is a method of ascertaining the total cost of specific job. It can be calculated on the…
Q: Using the following accounts and balances, prepare the "Stockholders' Equity section of the balance…
A: Stockholders' Equity is an important indicator of a company's financial health and stability. It…
Q: Saratoga Company manufactures jobs to customer specifications. The company is conducting a…
A: Answer:- Job costing meaning:- Job costing is the process of methodically calculating the labor and…
Q: Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The…
A: Adjusting Entry –As per the Honor code of Bartleby we are bound to given the answer of first three…
Q: 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your…
A: Gross Profit is the difference between the Sales and the Cost of Goods Sold.
Q: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East…
A: Production Budget:-The sales forecast and the anticipated amount of units of the commodity to be…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Production costs of the Finishing Department in June in Ivanhoe Company are materials $9,600, labor…
A: Cost per equivalent units :— It is calculated by dividing total costs by total equivalent units of…
Q: A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold. Sales…
A: The contribution margin is calculated as difference between sales and variable costs. The break-even…
Q: 4.1 Example: throughput accounting Corrie produces three products, X, Y and Z. The capacity of…
A: The number of units that flow through a process in a certain time period is referred to as…
Q: the following information for Crane Company for the month ended October 31, 2022. Crane uses a…
A: FIFO cost of goods sold is lower and gross profit is higher and net income is also higher compare to…
Q: Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year…
A: Stock price refers to the amount of stock used by investors for the purpose of earning profits by…
Q: 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,500…
A: The treasury stock includes the own shares of the company purchased from the shareholders. The…
Q: Sweet Acacia Motors is a division of Sweet Acacia Products Corporation. The division manufactures…
A: The income statement is prepared to record the revenues and expenses of the current period. The net…
Q: Victory Company uses weighted average process costing. The company has two production processes.…
A: Under weighted average method, cost per equivalent unit is calculated by adding the beginning work…
Q: in a wide variety of applications. During the coming year, it expects to sell 190,000 units for…
A: The cost of goods sold include the cost of goods that are sold during the period. The gross margin…
Q: Sequola Furniture Company's sales over the past three months, half of which are for cash, were as…
A: Accounts receivable are the funds owed by customers to a business for products or services received…
Q: Calculate the debt ratio and debt/equity ratio for each company. A B с Coca-Cola Co. Pepsico Inc. 1…
A: A company's debt ratio is a financial ratio can be calculated by dividing total debt by total…
Q: Problem 10-10 (Algo) Interest capitalization; weighted-average method [LO10-7] On January 1, 2021,…
A: Borrowing cost is the cost which is incurred in buying an asset for the purpose of use in business,…
Q: You are presented with the following transactions for J. Lee, a sole proprietorship established in…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Fixed asset turnover ratio Select financial statement data for two recent years for Davenport…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: Concord and Company makes and sells high-quality glare filters for computer monitors. John Stanford,…
A: The sales budget is a budget that estimates the sales revenue during a given period i.e., weekly or…
Q: margin and contribution margin ratio are $150,000 and 75%, respec-tively. The East Division's…
A:
Q: Hi-Tek produced and sold 60,500 units of B300 at a price of $20 per unit and 12,700 units of T500 at…
A: Traditional Costing is method of cost allocation of overheads in which costs are allocated using the…
Q: You have just completed a $24,000 feasibility study for a new coffee shop in some retail space you…
A: Capital budgeting is the process used by business entities for the purpose of determining the cash…
Q: Differential Analysis for a Discontinued Product The condensed product-line income statement for…
A: The decision making technique that helps the entity to analyze the benefits and costs of different…
Q: Companies balance sheet shows common stock $20 par $3,000,000 paid in capital in excess of par…
A: Treasury Stock -Treasury Stock is the own stock of the company purchased from the open market. These…
Q: Lusk Corporation produces and sells 14,300 units of Product X each month. The selling price of…
A: Dropping a Product line decision :While taking decision regarding adding or dropping a product…
Step by step
Solved in 3 steps
- 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.Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55Comacho Chemical Co. recorded costs for the month of 18,900 for materials, 44,100 for labor, and 26,250 for factory overhead. There was no beginning work in process, 8,000 units were finished, and 3,000 units were in process at the end of the period, two-thirds completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
- Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following costs were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Tool SK1 is responsible for 60% of the materials cost. Calculate the unit cost for Tool SK 1 and Tool SK3, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
- 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?Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and production hours were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Model A is responsible for 40% of the materials cost. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.
- 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.Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
