Costs charged to work in process-computation using cost data

Assignment Help Financial Accounting
Reference no: EM13825217

The inventory at June 1 and costs charged to work in process-Department 60 during june are as follows:

3800 units, 3/5 completed........$60400

Direct materials..........................378000

Direct labor.................................274000

Factory overhear..........................168000

Total factory cost be accounted for $880400

During June, 32000 units were placed into production and 31,200 were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 4.25/5 completed. Inventories are costed by the first in first out method and all materials are added at the beginning of the process.

Determine the following, presenting your computations (prepare your computations using unit cost data to four decimal places, I.e $4.4444, to minimize rounding differences):

Assuming that the direct material cost per unit is the same for May and June, by how much the conversion cost per unit increase and/or decrease from May to June?

A) 13.4633 increase

B) 6.6596 increase

C) 6.8037increase

D) None of these answers

Silver River Company sells products S and T and has made the following estimates for the coming year:

Product Unit selling price Unit variable cost Sales Mix

S $30 $24 60%

T $70 $56 40%

Fixed costs are estimated at $202,400. Determine the estimated sales in units (per product) necessary to realize an operating income of $119,600 for the coming year.

A) 8,500 Units of T & 6,500 units of S

B) 13,200 Units of S & 8,800 units of T

C) 14,000 Units of S & 21,000 units of T

D) NONE OF THESE ANSWERS

E) 23,000 Units of T & 14,000 Units of S

Selected information concerning sales and production for Walker Company for fiscal year 2013 are summarized as follows:

A. Estimated sales:

Product and region Unit sales Unit Selling

(volume) (price)

Wallet:

East 287,000 $12

West 241,000 $12

Handbag:

East 156,400 $25

West 123,600 $25

B. Estimated inventories, January 1, 2013:

Leather 18,000 sq yards Wallets 88,000 units

Lining 15,000 sq yards Handbags 48,000 units

WIP $214,400 Finished goods $1,095,600

Desired inventories, December 31, 2013

Leather 20,000 sq yards Wallets 80,000 units

Lining 12,000 sq yards Handbags 60,000 units

WIP $220,000 Finished Goods $1,565,000

Direct materials in production

Wallets: Handbags:

Leather 0.30 sq yd per unit 1.25 sq yd per unit

lining 0.10 sq yd per unit 0.25 sq yd per unit

Price per square yard:

Leather $4.50

Lining $1.20

E. Direct Labor requirements:

Wallet Handbag

Cutting Department:0.10 hr. per unit Cutting Department:0.15 hr. per unit

Sewing Department:0.25hr. Per unit Sewing Department:0.40 hr per unit

Cutting Department $12 hourly rate

Sewing Department 15 hourly rate

F. Estimated costs for fiscal year 2013:

Administrative Salary expense $618,000

Indirect factory wages 732,000

Supervisor salaries in Dept of production 360,000

Power & light 306,000

Depreciation of plant and equipment 288,000

Advertising expense 360,000

Indirect material 182,800

Sales salaries expense 715,000

Rent expense for sales and marketing 34,500

Insurance and property taxes 79,200

Office Supplies expense for Sales Dept 17,500

Travel Expense for marketing Dept 115,000

Maintenance of factory 140,280

Misc Administrative expense 25,000

G. Estimated other revenue/expenses and taxes

Interest Revenue $98,000

Interest Expense $90,000

Company's income tax rate 40%

What is the estimated cost of goods sold for 2013?

A) $9,047,780

B) NONE OF THESE ANSWERS

C) $9,880,600

D) $7,095,000

E) $12,095,350

What is the estimated direct Labor cost?

A)NONE OF THESE ANSWERS

B) $3,702,000

C) $1,437,000

D) $4,851,600

What is the estimate Net income for the company for the year 2013?

A) $1,446,732

B) $4,288,220

C) $2,403,220

D) NONE OF THESE ANSWERS

What is the estimated direct material to be purchased

A) NONE OF THESE ANSWERS

B) $2,587,500

C) $2,353,500

D) $234,000

Reference no: EM13825217

Questions Cloud

Apply the decision-making process in the purchase : Select one of the following vehicle brands: Audi, BMW, Buick, Cadillac, Dodge, Ford, GMC, Honda, Jeep, or Nissan.In a minimum of 700 words (excluding the title and reference pages), in APA FORMAT with a minimum of three references, explain how you wi..
Potential reforestation costs : ABC Company enters into a lease on a tract of timberland. The lease is for 10 years and allows ABC to harvest timber from the tract for that period of time. A clause in the lease allows the lessor to require ABC to reforest the land prior to the end ..
Presentation on low quality patient care due to inventory : Presentation on Low Quality Patient Care due to Inventory Mismanagement of Drugs in African Hospitals
Business in exchange for company stock : Mike invested $15,000 cash and a used truck worth $13,000 in the business in exchange for company stock.
Costs charged to work in process-computation using cost data : The inventory at June 1 and costs charged to work in process-Department 60 during june are as follows: Determine the following, presenting your computations (prepare your computations using unit cost data to four decimal places, I.e $4.4444, to minim..
The five elements of the promotional mix : The five elements of the promotional mix include:  advertising, personal selling, public relations, and sales promotion. Marketing strategies can include all of or a mix of these possible elements.Advertising: Advertising is non-personal in nature an..
How many servings will nina buy for braden : The problem is related to Economics and it is talk about marginal utility and consumer surplus for a consumer of chicken nuggets. The answer discusses this in further detail.
Determine provisions on extradition : Compare and contrast the provisions on extradition of the 1961 and 1971 Conventions with those of the 1988 Convention. In what ways are they different? Would you expect the 1988 provisions to be more effective?
Who are the stakeholders in this situation : This problem belongs to Accounting and it is about a scenario where a company's controller is weighing choices for allowing a costly product to be developed during financial crisis or to let an outside firm develop the technology and buy it from t..

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Pass both age and relationship tests for qualifying child

Which of the following persons don not pass both the age and relationship tests for a qualifying child

  Calculate depreciation on the drilling machine

An important component of the machine is the drill housing component that will need to be replaced in five years. The $200,000 cost of the drill housing component is included in the $840,000 cost of the machine. Calvin uses the straight-line deprecia..

  Journalize the payment of bond interest on january

Journalize the payment of bond interest on January 1, 2013 - Prepare the entry to amortize bond premium and to pay the interest due on July 1, 2013, assuming no accrual of interest on June 30.

  What kind of managerial accounting information

What kind of managerial accounting information is used to make a business decision of manufacturing versus purchasing from an outside source?

  Find the contribution margin ratio for consumer products

Using the contribution margin approach, find the contribution margin ratio for Consumer Products if the selling price per unit is $15, the variable cost per unit is $7.50, and the fixed costs are $8,000.

  What is the difference between us gaap and ifrs

a. What activities are included in the statement of cash flows under the section entitled "Cash flows from financing activities"? What is the difference between U.S. GAAP and IFRS with regard to the correction of accounting errors?

  Evaluate how these losses will affect the taxable income

Evaluate how these losses will affect the taxable income of the two owners

  Accrued product warranty

Lowe Manufacturing Co. warrants its products for one year. The estimated product warranty is 4% of sales. Assume that sales were $560,000 for June. In July, a customer received warranty repairs requiring $140 of parts and $95 of labor. Journalize the..

  Do you think companies should required to disclose items

hey know these amounts could enable investors to evaluate the company's inventory and payment systems. Do you think companies should be required to disclose such items? Why?

  Capital gains and losses for year

Capital loss carryover - corporation. ABC Corporation has the following capital gains and losses for year 2013. LTCG = $10,000 and STCL = $12,000. How much of the capital loss can be deducted in the year 2013? Report the amount that can be deducted. ..

  Compute the contribution margin ratio

the company sold 200 more flash drives than planned. What is the expected effect on profit of selling the additional drives? Compute the contribution margin ratio associated with one flash drive.

  Determine the differential income or loss from the sales

Crane Company Division B recorded sales of $59,700, variable cost of goods sold of $42,100, variable selling expenses of $16,400, and fixed costs of $10,500, creating a loss from operations of $9,300. Determine the differential income or loss from th..

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