Question 4 View Policies Current Attempt in Progress Concord Corporation required production for June is 62000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 230000 and 260000 pounds, respectively. How many pounds of direct material Z must be purchased? 186000 216000. O 168000. O 198000. hp C ins prt sc + delete home end & 7 num backspace lock Y 7 home K 4 enter pause T shift end alt ctr Σ 00 I

Question 4 View Policies Current Attempt in Progress Concord Corporation required production for June is 62000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 230000 and 260000 pounds, respectively. How many pounds of direct material Z must be purchased? 186000 216000. O 168000. O 198000. hp C ins prt sc + delete home end & 7 num backspace lock Y 7 home K 4 enter pause T shift end alt ctr Σ 00 I

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 47P: (Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30...

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Variable costs and activity bases in decision making The owner of Warwick Printing, a printing company, is planning direct labor needs for the upcoming year. The owner has provided you with the following information for next year's plans: One Color Two Color Three Color Four Color Total Number of banners 212 274 616 698 1,800 Each color on the banner must be printed one at a time. Thus, for example, a four color banner will need to be run through the printing operation four separate times. The total production volume last year was 800 banners, as follows: One Color Two Color Three Color Total Number of banners 180 240 380 800 As you can see, the four-color banner is a new product offering for the upcoming year. The owner believes that the expected 1,000-unit increase in volume from last year means that direct labor expenses should increase by 125% (1,000 800). What do you think?
(Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are 2,700,000 per year. The total labor minutes available are 600,000. During the year, the cell was able to produce 1.5 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product). 3. CONCEPTUAL CONNECTION Discuss how this approach to assigning conversion costs can improve delivery time performance.
QUESTION 5 A) A company sells product X & Y Sales for the year ended 2019 are: X: 5000 units @ ¢10 each Y: 3000 units @ ¢12 each The company expects to sell the following units in 2020: X: 6000 units @ ¢15 each Y: 4500 units @ ¢18 each Additional information: i) Budgeted opening stock X: 1000 units Y: 800 units Budgeted closing stock: X: 2000 units Y: 1500 units ii) Materials A and B are used to produce products X and Y based on the following ratio in order to produce one unit of X & Y Product Material A Material B X 3kg 2kg Y 2kg 1kg Purchase price ¢10 per Kg ¢12 per kg iii) Material A Material B Opening stock 8000 5000 Closing stock 6000 3500 (iv) The company has only one grade of labour and uses 3 hours to produce one unit of X 2 hours to produce one unit of Y Labour rate would be ¢20 per hour Required: Prepare the following budgets for 2020 Sales budget Production budget Direct Material usage budget Direct Material purchase budget Direct labour…
QUESTION 4 An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeksMaximum delivery time: 3.5 weeksNormal usage: 52 000 units per yearPurchase price per unit: R8.50Cost of placing an order: R18.00Interest rate: 2% per yearStoring cost per unit: R2.50 Required: Calculate the re-order point if the organisation has a policy to keep safety stock. Calculate the safety stock that should be kept by the organisation.
QUESTION 4 An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeksMaximum delivery time: 3.5 weeksNormal usage: 52 000 units per yearPurchase price per unit: R8.50Cost of placing an order: R18.00Interest rate: 2% per yearStoring cost per unit: R2.50 Required: Calculate the EOQ. Calculate the re-order point if the organisation does not keep safety stock.
Question Sec –B Subjective Young Product produces Coat Racks. The projected sales for the first quarteris 100,000 Units of the coming year with Sales Price Rs 150 per unit and the beginning and endinginventory expected 8,000 & 12,000 Units respectively.The coat racks are molded & then painted. Each rack required 4 pounds of metal, which costs Rs 23 perpound. The beginning inventory of raw material is 4,000 pounds. Young Product wants to have 6,000pounds of metal in inventory at the end of quarter. Each rack produced requires 30 minutes of direct labortime, which is billed at Rs 90 per hours.Budgeted Fixed Over Head is Rs 500,000 on 100,000 unitsRequired: 1. Prepare a Sales Budget (in Value) for the first quarter. 2. Prepare a Production Budget (in units only) for the first quarter. 3. Prepare a Direct Materials Purchase Budget for the first quarter.4. Prepare a Direct Labor Budget for the first quarter. 5. Prepare an Income Statement as per Marginal & Absorption Costing. 6.…
Ch. 7 Incremental Analysis Pg 461 Self Practice Please solve the following questions and provide and explanation. Thank you "Big Tent Company has received a special order for 10,000 units at a discount price of $100 each. The product sells for $150, has the following manufacturing costs: " Cost Per Unit Direct Materials $40 Direct Labor $ 20 Variable Manufacturing Overhead $ 20 Fixed Manufacturing Overhead $30 Totaul Unit Cost $110 1) Assume Big Top has enough extra capacity to fill the order without affecting the production or sale of it's product to regular customers. If Big Top accepts offer, what effect will the roder have on the company's short-term profit? 2) If Big Top is at full capacity, what price would be needed to cover all incremental costs, including opportunity costs?
Graded Discussion #3 _C-V-P AnalysisGreek Manufacturing Company produces and sells a line of product that are sold usually all year round. The company has a maximum production capacity of 100,000 units per year. Operating at normal capacity, the business earned Operating Income of $600,000 in 2020. The following cost data has been prepared for the year ended December 31, 2020.Selling price per unit……………………………………… $50.00Production Costs:Direct Materials …………………………………. $10.00Direct Labour ……………………………………. $8.00Variable Manufacturing Overhead ……………. $7.00Fixed Manufacturing Overhead…………....................... $450,000Fixed Selling & Administrative Expenses……………… $300,000Variable selling expense per unit ………………………. $10.00 d)Assuming sales equal to the normal capacity calculated in a) above, prepare a contribution margin income statement for the year ended December 31, 2020, detailing the components of total variable costs and total fixed costs, and clearly showing contribution and net…
Question iii) Han products manufacturing 40,000 units of part S-9 each year for use of its production line. A this level of activity, the cost per unit for part S-9 is given as follows : DM - $4.60; DL - $12; VMOH $3.60; FMOH $6. An outside supplier has offered to sell 40,000 units of part S-9 each year to Han products for $25 per part. If Han products accepts this offer, the facilities now being used to manufacturing part S-9 could be rented to another company at an annual rental of $80,000. However. Han products has determined that 2/3 of FMOH being applied to part S-9 would continue even if part S-9 were purchased from the outside supplier. Requirement: iii1. Calculate how much profit will increase/decrease if the outside supplier’s offer is accepted.
PROBLEM 6 The following information pertains to AAA Manufacturing Company’s Product X: Annual Demand 33,750 units Annual cost to hold one unit of inventory P15 Setup cost (or the cost to initiate a production run P500 Beginning inventory of Product X 0 At present, the company produces 2,250 units of Product X per production run, for a total of 15 production runs per year. The Company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product X. At present, the company’s total annual inventory costs is If the EOQ model is used, the economic lot size is If the EOQ model is used, the number of production runs should be If the EOQ model is used, the total annual inventory costs, compared with that under present system, will increase (decrease)…
Ch. 8 Homework Question 8 (a) Please solve and show the following Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: Selling costs are expected to be 6 percent of sales.Fixed administrative expenses per month total $1,200.Required: Complete Shadee's budgeted income statement for the months of May and June
Ch. 8 Homework Question 8 (a)Please solve and show the following Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.Additional information: Selling costs are expected to be 6 percent of sales.Fixed administrative expenses per month total $1,200.Required: Complete Shadee's budgeted income statement for the months of May and JuneStep 1Given information is:Shadee Corp.…