Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 13, Problem 24P
Problem 6-25A Effect of order quantity on special order decision
Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Dalton made 20,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here.
| Materials cost ($10 per unit × 20,000) | $200,000 |
| Labor cost ($9 per unit × 20,000) | 180,000 |
| Manufacturing supplies ($1.50 × 20,000) | 30,000 |
| Batch-level costs (20 batches at $2,000 per batch) | 40,000 |
| Product-level costs | 80,000 |
| Facility-level costs | 145,000 |
| Total costs | $675,000 |
| Cost per unit = $675,000 ÷ 20,000 = $33,75 |
Required
- a. Sunny Motels has offered to buy a batch of 500 blankets for $23.50 each. Dalton’s normal selling price is $45 per unit. Based on the preceding quantitative data, should Dalton accept the special order? Support your answer with appropriate computations.
- b. Would your answer to Requirement a change if Sunny offered to buy a batch of 1,000 blankets for $28 per unit? Support your answer with appropriate computations.
- c. Describe the qualitative factors that Dalton Quilting Company should consider before accepting a special order to sell blankets to Sunny Motels.
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Question 7.3
Farmer Company processes 40,000 pounds of direct materials to produce two products, Apples and Apple Sauce. Apple Sauce, a byproduct, sells for $9 per pound, and Apples, the main product, sells for $50 per pound. The following information is for July:
Production
Sales
Beginning Inventory
Ending Inventory
Apple Sauce
8,700
8,000
0
700
Apples
25,500
24,900
300
900
The manufacturing costs totaled $260,000; beginning inventory $3,200.
Required:
Prepare a July income statement assuming that Farmer Company recognizes the byproduct revenue at the time of sale. The company uses FIFO for the inventory flow assumption.
Prepare the journal entry to record the byproduct sales.
Question 12 of 40
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Question 12
Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:
Cost
PercentComplete
Materials costs
$
15,700
75%
Conversion costs
$
7,700
20%
A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs
$
186,300
Conversion costs
$
329,800
The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs. How many units are in ending work in process inventory in the first processing department at the end of the month?
Problem 23: COST OF GOODS SOLD ( ACTUAL COSTING )
Danica Corp. provided the following inventory balances and cost data for the month of June,
June 1 June 30
Direct materials 30,000 40,000
Work in process 15,000 20,000
Finished goods 65,000 50,000
Production data for the month of June follows:
Cost of goods manufactured 515,000
Factory overhead applied 150,000
Direct materials used 190,900
Actual factory overhead 144,000
Required: Compute the cost of goods sold under actual costing
Chapter 13 Solutions
Survey Of Accounting
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - Prob. 14QCh. 13 - Prob. 15QCh. 13 - Prob. 16QCh. 13 - Prob. 17QCh. 13 - Prob. 18QCh. 13 - Prob. 19QCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Exercise 6-5AOpportunity costs Norman Dowd owns...Ch. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Exercise 6-11AEstablishing price for an...Ch. 13 - Exercise 6-12AOutsourcing decision with...Ch. 13 - Exercise 6-13AOutsourcing decision affected by...Ch. 13 - Prob. 14ECh. 13 - Exercise 6-15ASegment elimination decision Dudley...Ch. 13 - Prob. 16ECh. 13 - Exercise 6-17AAsset replacementopportunity cost...Ch. 13 - Prob. 18ECh. 13 - Exercise 6-19A Asset replacement decision Mead...Ch. 13 - Exercise 6-20A Asset replacement decision Kahn...Ch. 13 - Exercise 6-21A Annual versus cumulative data for...Ch. 13 - Problem 6-23A Context-sensitive relevance Required...Ch. 13 - Problem 6-24A Context-sensitive relevance...Ch. 13 - Problem 6-25A Effect of order quantity on special...Ch. 13 - Problem 6-26A Effects of the level of production...Ch. 13 - Problem 6-28A Eliminating a segment Western Boot...Ch. 13 - Effect of activity level and opportunity cost on...Ch. 13 - Problem 6-30A Comprehensive problem including...Ch. 13 - Prob. 29PCh. 13 - ATC 6-1 Business Application Case Analyzing...Ch. 13 - ATC 6-2 Group Assignment Relevance and cost...Ch. 13 - Prob. 3ATCCh. 13 - Prob. 4ATCCh. 13 - Prob. 5ATC
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