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For year ended 12/31/08, inventory information for Harper Inc. is as follows:
Date
Description
Quantity
Unit Cost
01/31/08
Units on hand
1,000 units
$5.00/unit
03/25/08
Purchase
500 units
$6.00/unit
05/15/08
$7.00/unit
08/29/08
Sale
300 units
10/02/08
700 units
$8.00/unit
12/15/08
-500 units
Assuming a periodic inventory system and based upon the information above, please determine the COGS and Ending Inventory for year 2008 under the following inventory valuation methods:
a. Weighted Average cost
b. FIFO
c. LIFO
Use a cost-benefit analysis to recommend to Smith whether Sun Gas should proceed with the Web-based ordering system. Give your reasons, showing supporting calculations.
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Activity-based costing differs from traditional costing systems in a number of ways. In activity-based costing, non-manufacturing as well as manufacturing costs may be assigned to products. And, some manufacturing costs may be excluded from produc..
Write down the strengths and weaknesses of current costing model.
Pottery Ranch Inc. has been manufacturing its own finals for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 63% of direct labor cost.
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Roehler Industrial has estimated that production for the next five quarters will be: Make quarterly direct materials purchases budgets for Roehler Industrial for 2011.
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How should these centers be organized: as cost centers, profit centers, or investment centers? Support your answer.
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