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Managerial Accounting Assignment

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Question;2.;value;4.00 points;E13-8 Product costing-manufacturing overhead [LO 5];Winners, Inc.;manufactures women's boating shoes. Manufacturing overhead is assigned to;production on a machine-hour basis. For 2010, it was estimated that;manufacturing overhead would total $353,730 and that 29,460 machine hours;would be used.;Required;(a);Calculate the;predetermined overhead application rate that will be used for absorption;costing purposes during 2010. (Round your;answer to 2 decimal places. Omit the "$" sign in your response.);Predetermined;overhead application rate;$;(b);During May, 3,700;pairs of shoes were made. Raw materials costing $6,770 were used, and direct;labor costs totaled $9,350. A total of 770 machine hours were worked during;the month of May. Calculate the cost per pair of shoes made during May. (Round your intermediate calculations and final answer;to 2 decimal places. Omit the "$" sign in your response.);Cost;per pair of shoes;$;(c);At the end of May;1,310 pairs of shoes were in ending inventory. Calculate the cost of the;ending inventory and the cost of the shoes sold during May. (Round your intermediate calculations and final answer;to 2 decimal places. Omit the "$" sign in your response.);Cost;of shoes in inventory;$;Cost;of shoes sold;$;3.;value;10.00 points;P13-22 Cost of goods manufactured, cost of goods sold, and;income statement [LO 4, 5, 7];Big;Thunder Co. incurred the following costs during April;Raw;materials purchased;$;40,130;Direct;labor ($13 per hour);56,810;Manufacturing;overhead (actual);90,440;Selling;expenses;31,560;Administrative;expenses;14,490;Interest;expense;6,455;Manufacturing;overhead is applied on the basis of $22 per direct labor hour. Assume that;overapplied or underapplied overhead is transferred to cost of goods sold;only at the end of the year. During the month, 4,060 units of product were;manufactured and 4,420 units of product were sold. On April 1 and April 30;Big Thunder Co. carried the following inventory balances;April 1;April 30;Raw;materials;$;19,200;$;17,700;Work;in process;52,800;56,600;Finished;goods;41,800;24,884;Requirement;1;(a);Prepare a statement;of cost of goods manufactured for the month of April. (Amounts to be deducted should be indicated with minus;sign. Omit the "$" sign in your response.);BigThunder Co.;Statement of Cost of Goods Manufactured;For the month of April;Raw;materials;(Click to;select)Work-in-process, April 1Direct labor cost incurredManufacturing;overhead appliedInventory, April 30Inventory, April 1;$;(Click to select)Inventory;April 30Manufacturing overhead appliedWork-in-process, April 1Purchases;during AprilDirect labor cost incurred;Raw;materials available for use;(Click to select)Less;Inventory, April 30Add: Work-in-process, April 1Add: Inventory, April;30Direct labor cost incurredLess: Work-in-process, April 30;Cost;of raw materials used;$;(Click to;select)Purchases during AprilAdd: Work-in-process, April 1Inventory, April;1Direct labor cost incurredLess: Work-in-process, April 30;(Click to;select)Purchases during AprilLess: Work-in-process, April 30Manufacturing;overhead appliedInventory, April 1Add: Work-in-process, April 1;Total;manufacturing costs, April;$;(Click to select)Add;Work-in-process, April 1Less: Inventory, April 30Inventory, April 1Purchases;during AprilLess: Work-in-process, April 1;(Click to select)Less;Inventory, April 30Inventory, April 1Add: Work-in-process, April 30Less;Work-in-process, April 30Purchases during April;Cost;of goods manufactured, April;$;(b);Calculate the;average cost per unit of product manufactured. (Round;your answer to 2 decimal places. Omit the "$" sign in your;response.);Cost;per unit;$;Requirement;2;Calculate;the cost of goods sold during April. (Do not;round your intermediate calculations. Round your answer to the nearest dollar;amount. Omit the "$" sign in your response.);Cost;of goods sold;$;Requirement;3;(a);Calculate the;difference between cost of goods manufactured and cost of goods sold. (Do not round your intermediate calculations. Round;your answer to the nearest dollar amount. Input the amount as positive value.;Omit the "$" sign in your response.);Difference;$;(b);How;will this amount be reported in the financial statements?;(Click;to select)The difference between cost of goods manufactured and cost of goods;sold is in the finished goods inventory account on the balance sheet.The;difference between cost of goods manufactured and cost of goods sold is in;the work in progress account on the balance sheet.The difference between cost;of goods manufactured and cost of goods sold is in the raw material account;on the balance sheet.;Requirement;4;Prepare a;traditional (absorption) income statement for Big Thunder Co. for the month;of April. Assume that sales for the month were $284,500 and the company's;effective income tax rate was 40%. (Amounts to;be deducted should be indicated with minus sign. Do not round your;intermediate calculations. Round your answer to the nearest dollar amount.;Omit the "$" sign in your response.);BigThunder Co.;Absorption Income Statement;For the month of April;(Click to;select)Interest expenseCost of goods soldSelling and administrative;expensesIncome tax expenseSales;$;(Click to select)Cost of;goods soldIncome tax expenseSalesSelling and administrative expensesInterest;expense;(Click to select)Gross;profitGross loss;$;(Click to select)Selling;and administrative expensesInterest expenseWages payableAdvertising;expensesIncome tax expense;(Click to;select)Operating lossOperating income;$;(Click to;select)Advertising expensesUnearned revenueInterest expenseSelling and;administrative expensesWages expenses;(Click to;select)Advertising expensesWages expensesIncome before taxesUnearned;revenueSelling and administrative expenses;$;(Click to select)Income;tax expenseSelling and administrative expensesWages expensesUnearned;revenueAdvertising expenses;(Click to select)Net;lossNet income;$;4.;value;6.00 points;P13-16 Activity-based costing versus traditional overhead;allocation methods [LO 9];Galvaset Indutries;manufactures and sells custom-made windows. Its job costing system was;designed using an activity-based costing approach. Direct materials and;direct labor costs are accumulated separately, along with information;concerning three manufacturing overhead cost drivers (activities). Assume;that the direct labor rate is $19 per hour and that there were no beginning;inventories. The following information was available for 2010, based on an;expected production level of 53,500 units for the year, which will require;218,000 direct labor hours;Activity;(Cost Driver);Budgeted;Costs for 2010;Cost Driver Used;as Allocation Base;Cost;Allocation Rate;Materials;handling;$;261,600;Number;of parts used;$;0.28;per;part;Cutting;and lathe work;1,700,400;Number;of parts used;1.45;per;part;Assembly;and inspection;4,578,000;Direct;labor hours;21.00;per;hour;The following;production, costs, and activities occurred during the month of March;Units;Produced;Direct;Materials Costs;Number;of Parts Used;Direct;Labor Hours;3,250;$111,600;43,756;14,000;Required;(a);Calculate the total;manufacturing costs and the cost per unit of the windows produced during the;month of March (using the activity-based costing approach). (Round "cost per unit produced" to 2 decimal;places and the rest to the nearest dollar amount. Omit the "$" sign;in your response.);Total;manufacturing cost;$;Cost;per unit produced;$;(b);Assume instead that;Galvaset Industries applies manufacturing overhead on a direct labor hours;basis (rather than using the activity-based costing system previously;described). Calculate the total manufacturing cost and the cost per unit of;the windows produced during the month of March. (Hint: You will need;to calculate the predetermined overhead application rate using the total;budgeted overhead costs for 2010.) (Do not;round your intermediate calculations. Round "cost per unit;produced" to 2 decimal places and the rest to the nearest dollar amount.;Omit the "$" sign in your response.);Total;manufacturing cost;$;Cost;per unit produced;$;(c);Which approach do;you think provides better information for manufacturing managers?;(Click;to select)Activity based costingDirect labor hours basis;5.;value;4.00 points;E13-14 Variable versus absorption costing [LO 8];Conolly, Inc.;manufactures pocket calculators. Costs incurred in making 9,450 calculators;in April included $29,500 of fixed manufacturing overhead. The total;absorption cost per calculator was $9.5.;Required;(a);Calculate the;variable cost per calculator. (Do not round;your intermediate calculations. Round your answer to 2 decimal places. Omit;the "$" sign in your response.);Variable;cost per calculator;$;(b);The ending;inventory of pocket calculators was 900 units higher at the end of the month;than at the beginning of the month. By how much and in what direction (higher;or lower) would operating income for the month of April be different under;variable costing than under absorption costing? (Do;not round your intermediate calculations. Omit the "$" sign in your;response.);Operating;income under variable costing will be $,(Click to select)higherlower than;under;absorption costing.;(c);Express the pocket;calculator cost in a cost formula. (Do not;round your intermediate calculations. Round your answers to 2 decimal places.;Omit the "$" sign in your response.);Total;cost = $ + ($ / calculator ? number of calculators);value;20.00 points;P14-18 Sales, production, purchases, and cash budgets [LO 4, 5;8];Rolen, Inc., is in;the process of preparing the fourth quarter budget for 2010, and the;following data have been assembled;?;The company sells a;single product at a price of $50 per unit. The estimated sales volume for the;next six months is as follows;September;11,700 units;October;10,800 units;November;12,600 units;December;18,000 units;January;8,100 units;February;9,000 units;?;All sales are on;account. The company's collection experience has been that 30% of a month's;sales are collected in the month of sale, 68% are collected in the month;following the sale, and 2% are uncollectible. It is expected that the net;realizable value of accounts receivable (i.e., accounts receivable less;allowance for uncollectible accounts) will be $397,800 on September 30, 2010.;?;Management's policy;is to maintain ending finished goods inventory each month at a level equal to;30% of the next month's budgeted sales. The finished goods inventory on;September 30, 2010, is expected to be 3,240 units.;?;To make one unit of;finished product, 4 pounds of materials are required. Management's policy is;to have enough materials on hand at the end of each month to equal 40% of the;next month's estimated usage. The raw materials inventory is expected to be;18,144 pounds on September 30, 2010.;?;The cost per pound;of raw material is $5, and 70% of all purchases are paid for in the month of;purchase, the remainder is paid in the following month. The accounts payable;for raw material purchases is expected to be $68,364 on September 30, 2010.;Required;(a);Prepare a sales;budget in units and dollars, by month and in total, for the fourth quarter;(October, November, and December) of 2010.;(Omit the "$" sign in your response.);October;November;December;Total;Expected;sales in units;Selling;price per unit;$;$;$;$;Total;sales;$;$;$;$;(b);Prepare a schedule;of cash collections from sales, by month and in total, for the fourth quarter;of 2010. (Omit the "$" sign in your;response.);Cash;collections from;October;November;December;Total;September;sales;$;$;October;sales;$;November;sales;$;December;sales;Total;cash collections;$;$;$;$;(c);Prepare a;production budget in units, by month and in total, for the fourth quarter of;2010. (Amounts to be deducted should be;indicated with minus sign.);October;November;December;Total;Beginning;inventory of finished goods;Units;to be produced;Goods;available for sale;Desired;ending inventory of finished;goods;(30% of next month's;budgeted;sales);Quantity;of goods sold;(d);Prepare a materials;purchases budget in pounds, by month and in total, for the fourth quarter of;2010. (Amounts to be deducted should be;indicated with minus sign.);October;November;December;Total;Beginning;inventory of raw materials;Purchases;of raw materials;Raw;materials available for use;Desired;ending inventory of raw;materials (40%;of next month's;estimated;usage);Quantity;of raw materials to be;used;in production;(e);Prepare;a schedule of cash payments for materials, by month and in total, for the fourth;quarter of 2010. (Round your answers to the;nearest dollar amount. Omit the "$" sign in your response.);Cash;payments for;October;November;December;Total;September;purchases;$;$;October;purchases;$;November;purchases;$;December;purchases;Total;cash payments;$;$;$;$;E13-10 Manufacturing overhead-over/underapplied [LO 5, 6];[The;following information applies to the questions displayed below.];Halte Co. makes;specialty table lamps. Manufacturing overhead is applied to production on a;direct labor hours basis. During November, the first month of the company?s;fiscal year, $56,460 of manufacturing overhead was applied to Work in Process;Inventory using the predetermined overhead application rate of $7.17 per;direct labor hour.;7.;value;1.00 points;E13-10 Part a;Required;(a);Calculate the;number of hours of direct labor used during November. (Round your answer to nearest whole number.);Direct;labor hours;8.;value;1.00 points;E13-10 Part b;(b);Actual;manufacturing overhead costs incurred during November totaled $45,930.;Calculate the amount of over- or underapplied overhead for November. (Input the amount as positive value. Omit the;$" sign in your response.);(Click to;select)Overapplied overheadUnderapplied overhead;$

 

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