certain that the marriage wouldn’t last‚ and expected Chris would be back any day. But time is passing quickly‚ and there is still no word from the desert. The President‚ desperately needing the budget completed‚ has approached you‚ a management accounting student‚ for help in preparing the budget for the coming fiscal year. Your conversations with the President and your investigations of the company’s records have revealed the following information: 1. Peak months for sales correspond with gift-giving
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resulted in a loss of 60 labor jobs and 30 indirect jobs. 2. Consider two products in the same product line: | Product 1 | Product 2 | Expected Selling Price | $62 | $54 | Standard Material Cost | $16 | $27 | Standard Labor Cost | $6 | $3 | Calculate the expected gross margin as a percentage of selling price on each product based on the 1988 and 1990 model year
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Assignment 3 Question 1 Question 2 Question 3 a) It would be beneficial for the company as a whole if logs were transferred to the Sawing Division at the suggested price of $61.50 per log. CM from selling externally = $75 - $40.50 - $9.50 = $25/unit $25 x 10‚000 units = $250‚000 CM from selling to Sawing division = $122-Trasnfer costs from Harvesting-Production costs = $122-40.50-9.50-35-4.5-2.5 = $30/unit $30 x 10‚000 units = $300‚000 $300‚000 - $250‚000 = $50‚000 The CM is greater
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$420‚000 Work in process $120‚000 Finished goods $1‚030‚000 Cost of goods sold $2‚770‚000 Required: 1. Compute the company’s predetermined overhead rate for the year. 2. Compute the underapplied or overapplied overhead for the year. 3. Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate entry. Will this entry increase or decrease net operating income? PROBLEM 2-22B Schedules of Cost of Goods Manufactured
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method: Direct Materials Conversion Costs Units completed 13‚200 13‚200 Units‚ ending work in process: 8‚800 100% 8‚800 8‚800 25% 2‚200 Equivalent units of output 22‚000 15‚400 3. Equivalent units—FIFO method: Direct Materials Conversion Costs Units started and completed
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MANAGERIAL AND COST ACCOUNTING LARRY M. WALTHER & CHRISTOPHER J. SKOUSEN DOWNLOAD FREE TEXT BOOKS AT BOOKBOON.COM Managerial and Cost Accounting © 2009 Larry M. Walther‚ under nonexclusive license to Christopher J. Skousen & Ventus Publishing ApS. All material in this publication is copyrighted‚ and the exclusive property of Larry M. Walther or his licensors (all rights reserved). ISBN 978-87-7681-491-5 Download free books at BookBooN.com 2 Managerial and Cost Accounting
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• Jobs are assigned to each job or batch • A job may be for a specific order of inventory Process cost system : • This cost system is generally used when a large volume of similar products are manufactured Answers: a. A custom yacht builder – job order costing b. A golf course designer – job order costing c. A potato chip manufacturer – process costing d. A business consultant- job order costing e. A plywood manufacturer – process costing f. A
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| |X | |2. |Rent on equipment used in the factory |X | | |3. |Lubricants used for machine maintenance |X | | |4. |Salaries of personnel who work in the finished goods warehouse
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E -11 DM 5 DL 4 VMO 3 FMO = 180‚000/50‚000 = 3.6 Total = 15.6 15.6 * 5‚000 (50‚000-45000) = 78‚000 E-12 DM 5 DL 4 VMO 3 Cost per unit = 12 $ EIV = 12 * 5000 = 60‚000 E-13 Difference 3.6 * 5000 = 18‚000 And 78‚000 – 60‚000 = 18‚000 E-14 CGS sold = 45000(sold) * 15.60 = 702‚000 E15 12 * 45000 = 540‚000 E16 Sales = 30 * 45‚000 = 1‚350‚000 CGS 702‚000 CM 648‚000 Less S & admin. 160‚000 Net income 488‚000 E17 Sales =
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000 x 100‚000 = 99‚406 289‚720 1‚720 x 100‚000 = 594 289‚720 Syrup Sugar Joint costs 99‚406/20‚000 = $4.97 594/1‚000 = $0.59 Costs beyond split-off 12‚000/20‚000 = $0.6 280/1‚000 = $0.28 Unit Cost $5.57 $0.87 a. Answer: The cost of syrup is $4.70/unit if the sugar is considered a by-product and the gross margin from its sale is considered to be a reduction of syrup costs. b. Calculate product costs assuming this company decided to make and sell as much maple sugar
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