How construct customer profitability reports

Assignment Help Cost Accounting
Reference no: EM132633710

Super Cool Inc, manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows:

Price 40,500 per unit

Cost of goods sold 25,500

Gross Profit 15,000 per unit

In addition, the company incurs selling and administrative expense of 160,400. The company wishes to assign these costs to its three major customers, Goljes University, Biggest Arena, and NE Hospital. These expenses are related to three non-manufacturing activities: customer service, project bidding and engineering support. Engineering support is in the form of engineering changes that are placed by the customers to change the design of a product. The activity cost pool and activity bases associated with these activities are:

Activity       Activity Cost Pool Activity Base

Customer Service 66,500 Number of service requests

Project bidding 34,500 Number of bids

Engineering support 59,400 Number of customer design

Total costs 160,400

Activity based usage and unit volume information for three customers is as follows:

                                       Goljes Univ.            Biggest Arena             NE Hospital               Total

Number of request               110                        35                                45             190

Number of bids                     14                           12                              20               46

Number of designs                    75                            25                            35            135

Unit volume                                5                         10                                15            30

Required:

Problem 1. Determined activity rates for each of three non-manufacturing activity cost pools

Problem 2. Determine the activity costs allocated to three customers using activity rates in (1)

Problem 3. Construct customer profitability reports for the three, using activity costs in (2). The reports should disclose the gross profit and income from operations associated with each customer

Problem 4. Construct customers' profitability report for the three customers, using the traditional costing system where the company allocates non-manufacturing costs using the unit volume. The reports should disclose the gross profit and income from operations associated with each customer

Reference no: EM132633710

Questions Cloud

How to build the body for paper for research : How to cite in APA citation? How to build the body for paper for research? How to build a bibliography?
How to find transitional wording : How to find transitional wording? When and how to use when writing an essay?
Determine absorption costing net operating income last year : Pasta Corp. manufactures a variety of products. Determine the absorption costing net operating income last year. Fixed manufacturing overhead cost per unit 2
Design of an OOP system using Data Structures : ASSESSMENT DESCRIPTION: This assessment is an individual report about the design of an OOP system using Data Structures and Algorithms
How construct customer profitability reports : How Construct customer profitability reports for the three, using activity costs in (2). The reports should disclose the gross profit and income from operations
What are celebrations : What are celebrations? Celebration: Hosting a celebration of learning exam, where students take their exams
Present a sales letter bearing the tour itinerary : Present a sales letter bearing the tour itinerary, package cost, discounts and freebies, and terms and mode of payment
Implement it structures and functions : How will knowing roles within the health care industry provide you an opportunity to implement IT structures and functions? Provide examples.
Discuss a significant natural area in my life : An example of how can I discuss a significant natural area in my life in relating to natural landscapes?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

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