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Ocean Waverunners plans to manufacture 20,000 units, 24,000 units, and 30,000 units, respectively, in October, November, and December. Each of these units requires four units of part no. 879, which the company can purchase for $7 each. Ocean Waverunner has 35,000 units of part no. 879 in stock on September 30. Management desires to maintain the ending raw-material inventory equal to 40% of the following month's production usage.
Requirement:
Make a direct-material buys budget for October in parts and dollars.
Assume that Mucky Duck uses target costing. What is the price that Mucky Duck would charge the retailer for the All-Body swimsuit? What is the highest acceptable manufacturing cost Mucky Duck would be willing to incur to produce the All-Body swim..
Job costing, process costing. In each of the following situations, determine whether job costing or process costing would be more appropriate.
Kiel Center sells only on credit (no cash sales). Prior collection patterns describe that 28% of month's sales are gathered in the month of sale, 51% are collected in month after the sale, and 19% are collected in second month after the sale.
What is the definition of the relevant cost and how would it execute to both job costing and process costing.
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Use the contribution margin ratio CVP formula to compute Peyton Travel's break-even sales in dollars. If the average sales price of a ticket is $660.00; how many tickets must be sold to reach break-even?
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
City of Joseph Commercial Bank hired consultants to compute the costs of three products: checking accounts, personal loans, and the Gold visa card. The consultant identified the following activities, costs and activity drivers (annual data):
Factors which must be taken in account when making decisions regarding price, such as any change in risk involved in cost-volume-profit structure; the link between short- and long-run prices
Find out the value for the manager in conducting a cost-volume-profit analysis.
Describe how a job analysis increases productivity, aids in job description creation, and guides employee team formation.
Vintech Company is planning to produce 1,800 units of product in 2011. Each unit requires 4 pounds of materials at $6 per pound and a half hour of labor at $17 per hour. The overhead rate is 70% of direct labor
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