ACC-1B Lecture Notes - Lecture 1: Operations Management, Financial Accounting
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1. Yummy Tummy Desserts has 3,000 quarts of ice cream in WIPInventory, with all materials already added. What are equivalentunits in ending WIP Inventory for materials if the ice cream is 67%through the process?
990 | |
3,000 | |
0 | |
2,010 |
2. How do fixed costs react in total and on a per unitbasis?
Fixed costs increase in total asproduction increases and remain constant on a per unit basis. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed costs remain constant intotal and on a per unit basis as production increases. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed costs remain constant intotal and decrease per unit as production increases. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed costs increase in total and on a per-unit basis. 3. Sykes Company has sales revenue of $585,700. Cost of goodssold before adjustment is $335,900. The company's actualmanufacturing overhead is $91,900 while allocated manufacturingoverhead is $105,300. What is the actual gross profit?
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Yoder Furniture Works----the question is a the very end,I just provided supporting documents.
Yoder Furniture Works manufactures a high-quality, woodenrocker-recliner. A key differentiating feature of thisrocker-recliner is the ease with which a hand-operated lever raisesand lowers the footrest. Yoder left the prototype phase and begancommercial production on January 1, 2015. A retired accountant ofthe founder, Steve Yoder, maintained the accounting records on atemporary basis through January 31, 2015. Now, Yoder is searchingfor a replacement. Potential candidates are being askedto evaluate the information from the first month of commercialoperation as follows:
Cost information | |
Administrative expenses | $22,000 |
Advertising expenses | 11,700 |
Cash account balance, January 1, 2015 | 0 |
Depreciation on production equipment and factory building | 2,000 |
Depreciation on administrative offices | 750 |
Insurance on production equipment and factory building | 1,700 |
Administrative supplies expense | 550 |
Property taxes on production equipment and factory building | 425 |
Sales commissions | 18,700 |
Utilities for production equipment and factory building | 1,650 |
Wages paid to production workers | 67,800 |
Direct materials inventory, January 1, 2015 | 0 |
Direct materials inventory, January 31, 2015 | 0 |
Direct materials purchases during January 2015 | 83,400 |
Work in process inventory, January 1, 2015 | 0 |
Work in process inventory, January 31, 2015 | 0 |
Finished goods inventory, January 1, 2015 | 0 |
Production and sales information | |
Units produced during January 2015 | 600 |
Units sold during January 2015 | 490 |
Sales price per unit | $500 |
Based on the above information, answer the followingquestions:
Classify costs as either product costs or period costs using theformat shown below. Enter the dollar amount for each cost in theappropriate column and total each classification.
Item | Product Costs | Period Costs | ||
Direct Materials | Direct Labor | Manufacturing Overhead | ||
Admin Expenses | 22,000 | |||
Advertising Exp | 11,700 | |||
Depreciation Equipment and Building | 2,000 | |||
Depreciation on Admin Offices | 750.00 | |||
Insurance on production Equip and Fac.Building | 1,700 | |||
Administrative Supplies Exp | 550.00 | |||
Property taxes on production Equipment and FactoryBuild. | 425.00 | |||
Sales commissions | 18,700 | |||
Utilities for production equipment and factorybuilding | 1,650.00 | |||
Wages paid to production workers | 67,800 | |||
Direct materials purchases during January2015 | 83,400.00 | |||
Total | 83,400 | 67,800 | 5,775 | 53,700 |
Classify costs as either variable costs or fixed costs. Assumethere are no mixed costs. Enter the dollar amount for each cost inthe appropriate column and total each classification. Use theformat shown below. Assume that Utilities for production equipmentand factory building are a fixed cost
Item | Variable Costs | Fixed Costs | Total Costs |
Admin Expenses | 22,000 | ||
Advertising Exp | 11,700 | ||
Depreciation Equipment and Building | 2,000 | ||
Depreciation on Admin Offices | 750.00 | ||
Insurance on production Equip and Fac.Building | 1,700 | ||
Administrative Supplies Exp | 550 | ||
Property taxes on production Equipment and FactoryBuild. | 425 | ||
Sales commissions | 18,700 | ||
Utilities for production equipment and factorybuilding | 1,650.00 | ||
Wages paid to production workers | 67,800 | ||
Direct materials purchases during January2015 | 83,400.00 | ||
Total | 169,900 | 40,775.00 |
The ones below, I am having trouble with.
Determine the per-unit variable cost of a chair.
Determine the per-unit contribution margin and the contributionmargin percentage.