Question 21 of 26 << > View Policies Current Attempt in Progress Skysong Industries began the year with 5,000 stocking hats in WIP Inventory, 20% complete overall. Both conversion costs and DM resources are added to hats evenly throughout the process. Throughout the year, the company started 80,300 more hats, and it had completed 79,800 in total by year-end. Units in ending WIP Inventory were 70% complete overall. Skysong uses the weighted-average method of process costing. Determine equivalent units for this processing department at year-end by completing Step 2 of the template. Total equivalent units Save for Later DM -/4 E : Conversion Costs Attempts: 0 of 1 used k Submit Answer

Question 21 of 26 << > View Policies Current Attempt in Progress Skysong Industries began the year with 5,000 stocking hats in WIP Inventory, 20% complete overall. Both conversion costs and DM resources are added to hats evenly throughout the process. Throughout the year, the company started 80,300 more hats, and it had completed 79,800 in total by year-end. Units in ending WIP Inventory were 70% complete overall. Skysong uses the weighted-average method of process costing. Determine equivalent units for this processing department at year-end by completing Step 2 of the template. Total equivalent units Save for Later DM -/4 E : Conversion Costs Attempts: 0 of 1 used k Submit Answer

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 2CE: Assume that at the beginning of 20x2, Cicleta trained the 2 assembly workers in a new approach that...

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Evans Company had total sales of 3,000,000 for fiscal 20x5. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution. 3. What if, five years from now, quality costs are 7.5 percent of sales, with control costs being 65 percent of the total quality costs? What would your conclusion be?
Assume that at the beginning of 20x2, Cicleta trained the 2 assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting is expected to be virtually eliminated. It is expected to take two to three years for full implementation. Assume that receiving cost is a step-fixed cost with steps of 1,500 orders. The other three activities employ resources that are acquired as used and needed. At the end of 20x2, the following results were reported for the four activities: Required: 1. Prepare a trend report that shows the non-value-added costs for each activity for 20x1 and 20x2 and the change in costs for the two periods. Discuss the reports implications. 2. Explain the role of activity reduction for receiving and for expediting. What is the expected value of SQ for each activity after JIT is fully implemented? 3. What if at the end of 20x2, the selling price of a competing product is reduced by 27 per unit? Assume that the firm produces and sells 20,000 units of its product and that its product is associated only with the four activities being considered. By virtue of the waste-reduction savings, can the competitors price reduction be matched without reducing the unit profit margin of the product that prevailed at the beginning of the year? If not, how much more waste reduction is needed to achieve this outcome? In this case, what price decision would you recommend?
Kang Company reported sales of 3,240,000 in 20x5. At the end of the calendar year, the following quality costs were reported: Required: 1. Prepare a quality cost report. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution.
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.
Bradshaw Company reported sales of 5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported: Required: 1. Prepare a quality cost report. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution. 3. Assuming sales of 5,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales?
Process Costing System Questions: Q1. ABC Company produces one product through two stages of productions; the manufacturing and the assembly. Two DM are added during the manufacturing stage; DM A is added at the beginning of the process, and DM B is added at the 75% of completion. Conversion cost is added gradually. The following is data for cost and production during 2020: Data Units DM A DM B CC Beginning inventory (60%) 20,000 $160,000 $0 $60,000 Added units 80,000 $680,000 $300,000 $435,750 Ending Inventory (80%) 25,000 Required: Prepare the stage report for the manufacturing stage using, a) WA, and B) FIFO Journalize the required entry to transfer the completed units and prepare the ledger of the manufacturing stage. Q2. ABC Company is a manufacturing company that produces biscuits covered with chocolates. The company has two stages; manufacturing stage where they add the biscuits at the beginning of the production.…
12 - 13 Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.Carpet Kleen Floor DeodorizerUnits produced and sold 5,000 4,000Machine hours used 5,000 2,000Sales price per unit P7 P10Variable cost per unit P4 P8Fixed costs of P20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same. 12. The contribution margin per machine hour for Floor Deodorizer is: A. P0.25. B. P2.00. C. P4.00. D. P5.00. 13. Assuming there is unlimited demand for both products and Johnson has 10,000 machine hours available, how many units of each product should be produced and sold?Carpet Kleen Floor DeodorizerA. 0 units 0 units B. 0 units 20,000 units C. 5,000 units 10,000 units D. 8,000 units 4,000 units
Island Enterprises has presented the following information for the past eight months operations: 11 Month April KAy Daits Total Cost $18,500 4,750 J,950 $16,400 2,150 $12,600 $14,700 June J,550 July Aagust Septamber 4,950 Octaber 1,250 $17,500 4,650 Movember 4,150 $21,000 $18,000 $17,200 a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round variable cost to 2 decimal places.) Faed Cost Per Month Variable Cost Per Unit b. What would total costs be for a month with 3,750 units produced? (Do not round your intermediate calculations.) Total Coots
•The material DX is used uniformly throughout the year. The data about annual requirement, ordering cost and holding cost of this material is given below: • Annual requirement: 3,400 units • Ordering cost: OMR 15 per order • Holding cost: OMR 0.70 per unit •What will be the economic order quantity (EOQ) of material DX a. 3817.254 b. 318.72 c. 381.72 d. 3187.254 ....... Answer the Question based the data given below Opening Stock 25000 Closing Stock 35000 Net purchases 130000 Manufacturing expenses 30000 What will be the inventory turnover ratio? a. 6 b. 5 c. 4.5 d. 4
Economic Order Quantity Ottis, Inc., uses 632,025 plastic housing units each year in its production of paper shredders. The cost of placing an order is $24. The cost of holding one unit of inventory for one year is $12. Currently, Ottis places 159 orders of 3,975 plastic housing units per year. Required: 1. Compute the economic order quantity. units 2. Compute the ordering, carrying, and total costs for the EOQ. Ordering cost Carrying cost Total cost 3. How much money does using the EOQ policy save the company over the policy of purchasing 3,975 plastic housing units per order? Round your answer to the nearest dollar
A manufacturer reports the following costs to produce 19,000 units in its first year of operations: Direct materials, $19 per unit, Direct labor, $15 per unit, Variable overhead $190,000, and Fleed overhead. $285,000. Of the 19,000 units produced, 18100 were sold, and 900 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $44100 $30600 $26100