Needed in less than an hour
Jack ;and ;Jill ;Manufacturing ;Inc. ;began ;the ;year ;with ;the ;following.
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Units OUR PROCESSOrderPaymentWritingDeliveryWhy Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality |
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Beginning ;work-in-process |
;15,000 ; |
30% ;complete |
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Transferred ;to ;finished ;goods |
;55,000 ; |
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Ending ;inventory |
;5,000 ; |
60% ;complete |
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Materials ;added ;at ;the ;beginning ;of ;the ;process. |
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Required: ;Calculate ;the ;equivalent ;units ;for ;the ;following. |
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a. ;Materials ;costs ;under ;the ;weighted ;average ;process ;cost ;method |
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b. ;Conversion ;costs ;under ;the ;weighted ;average ;process ;cost ;method |
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c. ;Materials ;costs ;under ;the ;FIFO ;process ;cost ;method |
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d. ;Conversion ;costs ;under ;the ;FIFO ;process ;cost ;method |
3. (TCO 8) Bones Company manufactures two products (X and Z).
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Overhead costs have been divided into three cost pools that use the following activity drivers. |
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Product |
# ;of ;Setups |
Machine ;Hours |
Packing ;Orders |
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X |
24 |
1,300 |
75 |
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Z |
24 |
3,900 |
225 |
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Cost ;per ;Pool |
;$60,000 ; |
;$150,000 ; |
;$30,000 ; |
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a. ;What ;is ;the ;allocation ;rate ;for ;Product ;Z ;per ;setup ;using ;activity-based ;costing? |
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b. ;What ;is ;the ;allocation ;rate ;for ;Product ;Z ;per ;machine ;hours ;using ;activity-based ;costing? |
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c. ;What ;is ;the ;allocation ;rate ;for ;Product ;Z ;per ;packing ;order ;using ;activity-based ;costing? |
4. (TCO 8) Household Manufacturing Inc. sells its product for $80 each.
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Sales ;volume ;averages ;10,000 ;units ;per ;year. |
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Recently, ;its ;main ;competitor ;reduced ;the ;price ;of ;its ;product ;to ;$68. |
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Maximum ;expects ;sales ;to ;drop ;dramatically ;unless ;it ;matches ;the ;competitor’s ;price. |
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In ;addition, ;the ;current ;profit ;per ;unit ;must ;be ;maintained. |
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Information ;about ;the ;product ;(for ;production ;of ;10,000) ;is ;as ;follows. |
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Standard ;Quantity |
Actual ;Quantity |
Actual ;Cost |
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Materials ;(pounds) |
;2,400 ; |
;2,500 ; |
;$50,000 ; |
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Labor ;(hours) |
;600 ; |
;750 ; |
;$22,500 ; |
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Setups ;(hours) |
0 |
150 |
;$4,500 ; |
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Material ;handling ;(moves) |
0 |
500 |
;$4,000 ; |
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Warranties ;(number ;repaired) |
0 |
300 |
;$21,000 ; |
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Required: |
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a. ;Calculate ;the ;target ;cost ;for ;maintaining ;current ;market ;share ;and ;profitability. |
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b. ;Calculate ;the ;non-value-added ;cost ;per ;unit. |
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c. ;If ;non-value-added ;costs ;can ;be ;reduced ;to ;zero, ;can ;the ;target ;cost ;be ;achieved? |
(Points : 40)
