Each block requires 30 pounds of the raw material blockrock

Assignment Help Accounting Basics
Reference no: EM13581881

1) List and briefly explain at least three reasons that a company may have significant variances from static budget performance. Then, list and briefly explain at least three reasons for flex budget performance variances.

2) Tyus Company allocates overhead based on machine hours. Estimated overhead costs for the year total $390,000 and the company estimates that it will use 50,000 machine hours during the year. Tyus works 48,000 machine hours during the year and incurs $380,000 of overhead?

  • What is the overhead application rate for the year?
  • What is the amount of applied overhead for the year?
  • What is the amount of under or overapplied overhead for the year? Label over or under.
  • Why do you think you got the result you got in c above when overhead was less than expected?

3)At the end of the period, Boyd Company had the following balances in selected accounts:

            Raw Materials Inventory                                           $ 90,000

            Finished Goods                                                           180,000

            Work in Process Inventory                                           70,000

            Cost of Goods Sold                                                   1,000,000

            Manufacturing Overhead                                           100,000 (Dr.)

a)Prepare the journal entry to close the Manufacturing Overhead account if the balance in the account is considered material.

b) Prepare the entry assuming the manufacturing overhead balance is not considered material.

4) Harrell Company sells a single product at a price of $57 per unit. Variable costs per unit are
$35 and total fixed costs are $719,400. Star is considering the purchase of a new piece of equipment that would increase the fixed costs to $1,023,700, but decrease the variable costs per unit to $28.

a.If Star Company expects to sell 40,000 units next year, should they purchase this new equipment?

b. What would Star's volume have to be to change your recommendation in a above?

5)Jamila Company makes 2 products, A and B. Product A has a Contribution Margin per unit of $6.00 and product B has a contribution margin per unit of $11.00. Jamila Company has annual fixed costs of $290,000 units.

Assume that products A and B are sold in a 3:1 mix (3 units of A are sold for each unit of B). How many units of each must be sold to break even?

6) Bly Building Blocks is preparing its budget for 2013. Production for the first quarter will be 600,000 blocks. Production for the subsequent quarters will be 625,000 blocks, 700,000 blocks, and 850,000 blocks.

Each block requires 3.0 pounds of the raw material, blockrock, and each pound of blockrock costs $0.50. Bly will have 325,000 pounds of blockrock on hand at the end of 2012 and wants to have 500,000 pounds of blockrock in inventory at the end of 2013. Ending inventory for blockrock for the first, second, and third quarters will be 340,000 pounds, 360,000 pounds and 450,000 pounds.

Prepare the direct materials budget by quarter and in total for the year 2013.

Reference no: EM13581881

Questions Cloud

Describe the two sampling risks for test of controls and : 1.explain audit risk and auditors responsibility to handle the risk?2.what is pcaob interpretation of federal
At what angle theta must the 400 n force be applied in : at what angle theta must the 400 n force be applied in order to that the resultant r of the two forces will have
Multidisciplinary teams mdt have been recognised as an : multidisciplinary teams mdt have been recognised as an effective model of providing healthcare. in your essay refer to
Management desires an ending finished goods inventory in : 1.use the following data for msp company to prepare a production budget for the fourth quarter of
Each block requires 30 pounds of the raw material blockrock : 1 list and briefly explain at least three reasons that a company may have significant variances from static budget
Find the electric field a distance z above the center of a : 1. find the electric field a distance z above the center of a flat circular disk of radius r that carries a uniform
Produce a short report to update your manager on both the : a manufacturer makes silicon strain gauge transducers that are designed to produce a linear voltage output that is
Present your analysis as a 1-page report in a word document : go to the web site of global technology forum httpwww.ebusinessforum.com. choose a foreign country and find out the
Consider the following regression model graph salary y : consider the following regression modelsalaryin 1000 20 2x 5z 0.7xzwhere x is the number of years of experience

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Consolidated balance sheet after acquisition

Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after acquisition?

  During 2013 sanchez sells inventory costing 120000 to

following are several figures reported for preston and sanchez as of december 31

  Make a summary of performance tests and analysis of target

prepare a summary of performance tests and analysis of the target acquisition. kohlsperform the following tests to help

  Inventory in the hands of coast corporation

Under a plan of complete liquidation, Coast Corporation distributes land with a $300,000 adjusted basis and a $400,000 FMV to William, a 25% shareholder. William has a $200,000 basis in his Coast stock. The land is inventory in the hands of Coast ..

  Compute the cost of goods sold and ending inventory

Compute the cost of goods sold and ending inventory, assume (1) is LIFO, LIFO cost flow (2) LIFO cost flow. And (3) weighted average.

  Buffet requirement to be capital efficient

The best investor of all time, Warren Buffet, talks about investing in "capital efficient" businesses. Coca Cola falls into this category since it generates great sums of cash with minimal investment in capital.

  Boeing cash flow from operating activities

What was Boeing's cash flow from operating activities for the fiscal year?

  Basis to the corporation of the property

What gain or loss is recognized by the corporation when it issues its shares to Kyle? What is the basis to the corporation of the property it received from Kyle?

  Determine the total fixed cost per unit of production

Determine the total fixed cost per unit of production, assuming that Bender produces 4,000, 4,500, or 5,000 units.

  Lakshmi is single and provides you with the following tax

lakshmi is single and provides you with the following tax information for 2012 salary 200000 bank account interest 1000

  Prepare a schedule of cost of contract

Prepare a schedule of cost of contract services provided (similar to a cost of goods manufactured schedule) for the month. (List amounts from largest to smallest eg 10, 5, 3, 2.)

  Keller cosmetics maintains an operating profit margin of 60

keller cosmetics maintains an operating profit margin of 6.0 and asset turnover ratio of 4.0. a. what is its roa? round

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