Shannon Warren
Written: Sep 20, 2015 7:14 PM – Sep 20, 2015 9:44 PM
Question 1
Inventory,
August 1
170,000
Direct
Labor
250,000
Factory
Rent
30,000
Factory
Utilities
10,000
Miscellaneous
Factory expenses
45,000
Indirect
Labor 80,000
Direct
materials purchased in August
1,050,000
Inventory,
August 31 120,000
Work
in process, August 1 90,000
Work
in process, August 31
105,000
Using the data above
1. Calculate total manufacturing Costs?
2. Prepare a Cost of Goods Manufactured Schedule
1. 465,000
2. Work in process August 1
$90,000
Inventory 8,1
170,000
Inventory 8,31
120,000
Direct Materials Used
50,000
Direct Labor
250,000
Manufacturing Overhead
Indirect Labor
80,000
Factory Utilities
10,000
Factory Rent
30,000
Misc Factory Expenses 45,000
Total Manuf. Overhead
165,000
Total Manuf Costs
465,000
Total Cost of Work in process
555,000
Work in Process August 31
105,000
Cost of Goods Manufactured
450,000
Question 2
UNITS
Work in Process,
August 1
(70% complete as to Direct Materials and Conversion Costs)
5,000
Units started in process
50,000
Units transferred
out
34,000
Units completed and on
hand
15,000
Work in Process,
August
31
(100 %
complete as to Direct Materials; 40% complete as to Conversion
Costs) 6,000
1. Based on the above data compute the equivalent
units using the Weighted Average Costing Method
2. Based on the above data compute the equivalent
units using the FIFO Costing Method
1. 51,400 (conversion)
5000+50000-6000=49,000 equivalent units
2.Units started and completed (50,000-15,000)
35,000
Units completed from beginning work in process (5000*30%)
1,500
Units in ending work in process (6,000*40%)
2,400
Total equivalent units 38,900
Question 3
Inventories
Beginning
Ending
Raw Materials
$10,900
$11,400
Work in Process
14,800
12,900
Finished Goods
16,100
19,300
Purchases
226,900
Direct Labor
90,000
Factory Overhead
79,500
1. Calculate cost of raw materials used
2. Calculate Cost of goods sold
Beg Raw Materials Inventory
10,900
Raw Material Purchases
226,900
2. Beg Finished Goods Inventory
16,100
+ Purchases
226,900
-Ending Finished Goods Inventory
19,300
=Cost of Goods Sold
223,700
Question 4
The Window manufacturer has completed 3,000 windows, using
12,000 feet of glass at a cost of $60,000. Window manufacturer’s material
standard for one window is 6 feet of glass at $4.25 per foot.
1. Calculate the Materials Price variance. Be
sure to indicate Favorable or Unfavorable.
2. Calculate the Material Quantity/Usage
variance. Be sure to indicate Favorable or Unfavorable.
1 Favorable
Unfavorable
Question 5
In 2014, ABC
Television manufactured 3,400 units at a cost of $15.00 per hour for each unit.
Each unit took 3 hours to complete.
The direct labor standard for the 3,500 units is 2.5 hours per
unit, at $12.50 per hour for each unit.
1.Calculate the Labor Efficiency/Quantity/Usage
variance. Be sure to indicate Favorable or Unfavorable.
2. Calculate
the Rate variance. Be sure to indicate Favorable or
Unfavorable.
3-2.5*12.50=6.25 labor
efficiency variance
Question 6
During the month, Bicycle Company sells children’s bikes at $100
per unit. The company’s store rent is $24,000 per month. Each month the company
incurs variable costs of $74 per unit.
1. Calculate Bicycle Company’s Break Even Point
in Units
2. Calculate Bicycle Company Break Even Point in
Dollars
1.Contribution per unit = 100-74=26
Break-Even Point in units 24,000/26
Break Even Point in units 923.07 units
2. $92,307.69
_______________________________________________________________________
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ACCT
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Quiz
#2 EXTRA CREDIT
I realize you know the correct
answer, because I have given it to you in your feedback. Therefore, to receive credit you must show ALL
your work. Partial credit will not be given. Your original response to the
question is provided above for your reference.
Respond to the following
questions, ONLY. Please identify which
question and part you are responding to by using the same numbers to indicate
your response to each part of the question, as appropriate.
Question #1
Inventory,
August 1
170,000
Direct
Labor
250,000
Factory
Rent 30,000
Factory
Utilities
10,000
Miscellaneous
Factory expenses
45,000
Indirect
Labor 80,000
Direct
materials purchased in August 1,050,000
Inventory,
August 31 120,000
Work
in process, August 1 90,000
Work
in process, August 31
105,000
Using
the data above
a.
Calculate
total manufacturing Costs?
b.
Prepare
a Cost of Goods Manufactured Schedule
Question
#2
UNITS
Work
in Process, August 1
(70% complete as to Direct Materials and
Conversion Costs) 5,000
Units
started in process
50,000
Units
transferred out
34,000
Units
completed and on hand
15,000
Work
in Process, August 31
(100 % complete as to Direct Materials; 40%
complete as to Conversion Costs)
6,000
a.
Based
on the above data compute the equivalent units using the Average Costing Method
NOTE: You have already correctly calculate the Equivalent units for
Conversion Costs (only); For part “a”, Only calculate the Equivalent Units for
Materials
b.
Based
on the above data compute the equivalent units using the FIFO Costing Method
Question
#3
Inventories Beginning Ending
Raw
materials $10,900 $11,400
Work
in process 14,800 12,900
Finished
Goods 16,100 19,300
Purchases 226,900
Direct
Labor 90,000
Factory
overhead costs 79,500
a.
Calculate
cost of raw materials used
b.
Calculate
Cost of goods sold
Question
#4
The
Window manufacturer has completed 3,000 windows, using 12,000 feet of glass at
a cost of $60,000. Window manufacturer’s material standard for one window is 6
feet of glass at $4.25 per foot.
a.
Calculate
the Materials Price variance
b.
Calculate
the Material Quantity/Usage variance
Question
#5
In
2014, ABC Television manufactured 3,400 units at a cost of $15.00 per hour for
each unit. Each unit took
3
hours to complete. The direct labor
standard for the 3,500 units is 2.5 hours per unit, at 12.50 per hour for
each
unit.
a.
Calculate
the Labor Efficiency/Quantity/Usage variance
b.
Calculate
the Rate variance
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