Assignment regarding the yoder furniture works

Assignment Help Accounting Basics
Reference no: EM13960892

Yoder Furniture Works

Yoder Furniture Works manufactures a high-quality, wooden rocker-recliner.  A key differentiating feature of this rocker-recliner is the ease with which a hand-operated lever raises and lowers the footrest. Yoder left the prototype phase and began commercial production on January 1, 2015.  A retired accountant of the founder, Steve Yoder, maintained the accounting records on a temporary basis through January 31, 2015.  Now, Yoder is searching for a replacement.   Potential candidates are being asked to evaluate the information from the first month of commercial operation as follows:

Cost information

 

Administrative expenses

$22,000

Advertising expenses

11,700

Cash account balance, January 1, 2015

0

Depreciation on production equipment and factory building

2,000

Depreciation on administrative offices

750

Insurance on production equipment and factory building

1,700

Administrative supplies expense

550

Property taxes on production equipment and factory building

425

Sales commissions

18,700

Utilities for production equipment and factory building

1,650

Wages paid to production workers

67,800

Direct materials inventory, January 1, 2015

0

Direct materials inventory, January 31, 2015

0

Direct materials purchases during January 2015

83,400

Work in process inventory, January 1, 2015

0

Work in process inventory, January 31, 2015

0

Finished goods inventory, January 1, 2015

0

 

 

Production and sales information

 

Units produced during January 2015

600

Units sold during January 2015

490

Sales price per unit

$500

Based on the above information, answer the following questions:

1. Classify costs as either product costs or period costs using the format shown below.  Enter the dollar amount for each cost in the appropriate column and total each classification.

Item

Product Costs

Period Costs

Direct Materials

Direct Labor

Manufacturing Overhead






2. Classify costs as either variable costs or fixed costs.  Assume there are no mixed costs.  Enter the dollar amount for each cost in the appropriate column and total each classification.  Use the format shown below.  Assume that Utilities for production equipment and factory building are a fixed cost

Item

Variable Costs

Fixed Costs

Total Costs

3. Prepare a schedule of cost of goods manufactured for the month of January 2015.

4. Determine the per-unit cost of producing a chair.

5. Identify the type of product costing system that is probably using at this time.  How did you make this determination?

6. Would you recommend that Yoder use a different product costing system?  Why or why not?

7. Determine the per-unit variable cost of a chair.

8. Determine the per-unit contribution margin and the contribution margin percentage.

9. Determine the breakeven point in units and in sales dollars.

10. Prepare flexible budgets for manufacturing costs for activity levels of 700 and 800 chairs per month.

Reference no: EM13960892

Book value of the widget co assets

If all the current assets were liquidated today, the company would receive $1.9 million in cash. The book value of the Widget Co's assets today is ________ and the market va

Book value of the widget co assets

If all the current assets were liquidated today, the company would receive $1.9 million in cash. The book value of the Widget Co's assets today is ________ and the market va

Cash to monthly cash expenses ratio

Allos Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treatment of cancer. Allos Therapeutics reported the following financial data (in thousa

Revenue recognition

Revenue Recognition -  Suppose for purposes of this question that Cisco closes its books quarterly.  What journal entry or entries did Cisco make on October 31, 2011?

History of the evolution of directors duties

Give a short history of the evolution of director's duties and responsibilities. Please enumerate their duties and responsibilities today. Are their duties the same in propr

Includes a description of change theories

This assignment will help you understand conflict at the individual, team and organizational levels. Using the South University Online Library or the Internet, research and id

Internet to read more about the behavioral patterns

Research the South University Online Library and the Internet to read more about the behavioral patterns. Conduct an interview (via phone or face-to-face) of ten or more peo

Hackers present a substantial risk

In today's technology environment, hackers present a substantial risk to a firm's accounting or business system. As the result of these attacks, firms suffer huge losses, ra

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd