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determine the increase or decrease in net income if C Region did not operate.

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The Zoe Corporation has the following information for the month of March. Prepare a (a) schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) prepare only the inventory section of the balance sheet.;Purchases;$92,000;Materials inventory, March 1;6,000;Materials inventory, March 31;8,000;Direct labor;25,000;Factory overhead;37,000;Work in process, March 1;22,000;Work in process, March 31;23,500;Finished goods inventory, March 1;21,000;Finished goods inventory, March 31;30,000;Sales;257,000;Sales and administrative expenses;79,000;2. The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year;Work in Process;Balance, July 1;60,200;Direct materials;147,000;Direct labor;120,000;Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200.;(a);Prepare the journal entries to record (1) the application of factory overhead to production during July and (2) the jobs completed during July.;(b);What is the balance of the factory overhead account on July 31?;(c);Was factory overhead overapplied or underapplied on July 31?;(d);Determine the cost of the unfinished jobs on July 31.;3. Eagle Co. manufactures bentwood chairs and tables. Wood for both products is steam-bent in the same process, but different types of wood are used for each product. Thus, materials cost is identified separately to each product. One production cycle uses 20 board feet. Labor cost is identified to the process as a whole, as is overhead cost. Data for the month of July follow;Chairs;Tables;Direct material cost per board foot;$ 3.60;$ 4.20;Number of parts formed per production cycle (20 board feet);10;8;Actual operating hours in July;120;380;Parts produced during July;4,000;9,000;Budgeted annual conversion cost;Labor;$150,000;Utilities;125,000;Depreciation;65,000;Other overhead;50,000;Total;$390,000;Budgeted annual operating hours for steam-bending;5,200;(a);Compute July's predetermined rate for the steam-bending process.;(b);Compute July's direct material costs for chairs and tables.;(c);Compute conversion costs to be applied to chairs and tables in July.;(d);Journalize the following entries;(1);Assignment of direct materials to chairs and tables.;(2);Application of conversion costs to chairs and tables.;(3);The transfer of completed chairs and tables to the Finishing Department. All of July's production was completed in July.;4. The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250 respectively. During January, the first month of the current year, actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $22,000.;(a);Determine the factory overhead rate based on machine hours.;(b);Present the entry to apply factory overhead to production in Department 40 for January.;(c);What is the balance of Factory Overhead - Department 40 at January 31?;(d);Does the balance of Factory Overhead - Department 40 at January 31 represent overapplied or underapplied factory overhead?;Round total cost to nearest dollar value.;5. The cost graphs in the illustration below shows various types of cost behaviors.;For each of the following costs, identify the cost graph that best describes its cost behavior as the number of units produced and sold increases;(a);Sales commissions of $6,000 plus $.05 for each item sold.;(b);Rent on warehouse of $12,000 per month.;(c);Insurance costs of $2,500 per month.;(d);Per-unit cost of direct labor.;(e);Total salaries of quality control supervisors. One supervisor must be added for each additional work shift.;(f);Total employer pension costs of $.35 per direct labor hour.;(g);Per-unit straight-line depreciation costs.;(h);Per-unit cost of direct materials.;(i);Total direct materials cost.;(j);Electricity costs of $5,000 per month plus $.0004 per kilowatt-hour.;(k);Per-unit cost of plant superintendent's salary.;(l);Salary of the night-time security guard of $3,800 per month.;(m);Repairs and maintenance costs of $3,000 for each 2,000 hours of factory machine usage.;(n);Total direct labor cost.;(o);Straight-line depreciation on factory equipment.;6. For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price at $85. Determine (a) the break-even point in units of sales, (b) the unit sales required to realize operating income of $150,000 and (c) the probable operating income if sales total $500,000.;Round units to the nearest whole number and percentage to one decimal place.;7. Finewood Cabinet Manufacturers uses flexible budgets that are based on the following manufacturing data for the month of July;Direct materials;$8 per unit;Direct labor;$5 per unit;Electric power (variable);$0.30 per unit;Electric power (fixed);$4,000 per month;Supervisor salaries;$15,000 per month;Property taxes on factory;$4,000 per month;Straight-line depreciation;$2,900 per month;Prepare a flexible budget for Finewood based on production of 10,000, 15,000, and 20,000 units.;8. Door & Window Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows;August;$120,000;September;200,000;October;230,000;The company expects to sell 40% of its merchandise for cash. Of the sales on account, 25% are expected to be collected in the month of the sale and the remainder in the following month.;Prepare a schedule indicating total cash collections for August, September, and October.;9. Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows;Actual costs;1,550 lbs. @ $9.10;Standard costs;1,600 lbs. @ $9.00;Determine the (a) quantity variance, (b) price variance, and (c) total direct materials cost variance.;10. Using the data from the Coffee & Cocoa Company;(a);determine the divisional income from operations for the three regions by allocating the service department expenses proportional to the sales of the regions.;(b);determine the increase or decrease in net income if C Region did not operate.;A Region;B Region;C Region;Sales;$600,000;$900,000;$300,000;Cost of goods sold;200,000;350,000;190,000;Selling expenses;150,000;275,000;100,000;Service department expenses;Purchasing;120,000;Payroll accounting;80,000

 

Paper#24123 | Written in 18-Jul-2015

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