One of the items was sold during the year. Required: Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory, assuming use of: a. LIFO b. FIFO c. Weighted average (total cost/total number) | |Cost of goods sold |Ending inventory | |LIFO |700 |800 | |FIFO |800 |700 | |Weighted Average |750 |750 | Problem 2. Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life.
5. Question: (TCO 9) It costs Lannon Fields $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 2,000 units at $18 each. Lannon has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?
Basic flexible budgeting Centron, Inc., has the following budgeted production costs: |Direct materials |$0.40 per unit | |Direct labor |1.80 per unit | |Variable factory overhead |2.20 per unit | |Fixed factory overhead | |Supervision |$24,000 | |Maintenance |18,000 | |Other |12,000 | The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500,
Part (b) Calculate the seasonal forecast of sales for February of Year 3. Part (c) Which forecast do you think is most accurate and why? 11. Question : (TCO 6) Davis Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project A Project B Initial Investment $800,000 $650,000 Annual Net Income $50,000 45,000 Annual Cash Inflow $220,000 $200,000 Salvage Value $0 $0 Estimated Useful Life 5 years 4 years The company requires a 10% rate of return on all new investments.
$24,000 increase D. $11,000 decrease 45. Hylow Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sell to generate net operating income of $80,000? A.
c. If a team of three workers in the United States, each making the federal minimum wage, produced these 12 rugs, what would the total labor costs be? Don't forget that these workers would be working overtime. (4 points) $92,700 is the total labor costs for producing 12 rugs. 2. A team of five laborers in Indonesia working in a garment factory divides the task of making men's dress shirts for export to the United States.
Direct materials $14 Indirect materials (variable) 4 Direct labor 8 Indirect labor (variable) 6 Other variable factory overhead 10 Fixed factory overhead 28 Variable selling expenses 20 Fixed selling expenses 14 During the period, the company produced and sold 1,000 units. a. What is the inventory cost per unit using absorption costing? b. What is the inventory cost per unit using variable costing?
ACCT 550 Week 7 Homework Chapter 11: E11-4, E11-9, E11-11, E11-17 E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round to the nearest dollar.)
In order to calculate the cycle time we need the following: Production time per day / output per day in our conversation with Wu, there is a budget to produce 6 workbooks an hour, with a 40-hour workweek. This information can be used to calculate the cycle time; Production time per day is 8 hours or 480 minutes with a required 48 boots per day for a total of 10 minutes per unit Using these values we can see that the minimum workstation are simply calculated by dividing 46 minutes / 10 = 4.6 or 5 minimum stations and increasing the efficiency to 92%. 1. Please see attached copy of the excel POM workbook that backs up the information discussed above as well as it gives the most efficient production realignment as shown on table below, proving to be the best tool to increase efficiency and reduce the number of stations
We expect the long-term prospects to grow. Over 85% of the cargo carried by capsizes was iron ore and coal. A decision has to be made on the possible construction of a new ship to meet the demands of the charterer, which wants a contract of only 3 years. To reach the decision, Mary Linn, had to arrive at the “NET PRESENT VALUE” of the investment, i.e., the Ship. What are the key financial issues involved with Mary Linn's decision?