Cost accounting help

FratBro23
Category:
Accounting
Price: $15 USD

Question description

1. (TCO 2)

Juicy Manufacturing Corporation incurred the following costs.

Beginning direct materials inventory

 $12,800 

Beginning work-in-process inventory

 $5,600 

Beginning finished goods inventory 

 $15,200 

Ending direct materials inventory 

 $12,800 

Ending work in process 

 $11,200 

Ending finished goods 

 $20,800 

Factory supervisor's salary 

 $22,400 

Depreciation on plant 

 $9,600 

Sales 

 $640,000 

Selling and administrative expenses 

 $100,000 

Plant maintenance 

 $4,800 

Plant utilities 

 $8,800 

Direct material purchases 

 $172,000 

Direct labor 

 $192,000 

Required: Calculate the following.

a. Direct materials used

b. Cost of goods manufactured

c. Cost of goods sold

d. Operating income

(Points : 20)  

2. (TCO 3) 

Jack and Jill Manufacturing Inc. began the year with the following.

Units

Beginning work-in-process

 15,000 

30% complete

Transferred to finished goods

 55,000 

Ending inventory

 5,000 

60% complete

Materials added at the beginning of the process.

Required: Calculate the number of    equivalent units for the following.

a. Materials costs under the weighted average process cost method

b. Conversion costs under the weighted average process cost method

c. Materials costs under the FIFO process cost method

d. Conversion costs under the FIFO process cost method

(Points : 20)  

3. (TCO 8) Bones Company manufactures two products (X and Z).

Overhead costs have been divided into three cost pools that use the following activity drivers.

Product

# of Setups

Machine Hours

Packing Orders

X

24

1,300

75

Z

24

3,900

225

Cost per Pool

 $60,000 

 $150,000 

 $30,000 

a. What is the allocation (activity) rate per setup using activity-based costing?

b. What is the allocation (activity) rate per machine hours using activity-based costing?

c. What is the allocation (activity) rate per packing order using activity-based costing?

(Points : 20)  

4. (TCO 8) Household Manufacturing Inc. sells its product for $80 each.

Sales volume averages 10,000 units per year.

Recently, its main competitor reduced the price of its product to $68.

Maximum expects sales to drop dramatically unless it matches the competitor's price.

In addition, the current profit per unit must be maintained.

Information about the product (for production of 10,000) is as follows.

Standard Quantity

Actual Quantity

Actual Cost

Materials (pounds)

 2,400 

 2,500 

 $50,000 

Labor (hours)

 600 

 750 

 $22,500 

Setups (hours)

0

150

 $4,500 

Material handling (moves)

0

500

 $4,000 

Warranties (number repaired)

0

300

 $21,000 

Required:

a. Calculate the target cost for maintaining current market share and profitability.

b. Calculate the non-value-added cost per unit.

c. If non-value-added costs can be reduced to zero, can the target cost be achieved?


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: Boston College
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