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Question #1 (8 points) The XYZ Company has budget...

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Question #1 (8 points) The XYZ Company has budgeted sales of 975,000 units in 2012. Its target ending inventory is 95,000 units and its beginning inventory is 115,000 units. Each unit of XYZ?s product requires 5 pounds of material to produce. Its target ending inventory for material is 75,000 pounds and its beginning inventory for materials is 65,000 pounds. a) Compute the number of units to be produced. b) Compute the budgeted number of pounds of materials to be purchased. Question #2 (8 points) The Thomas Company makes all its sales on credit. It expects to collect cash from receivables according to the following schedule: ? 60% collected in the month of sale. ? 20% in the month after sale. ? 13% in the second month after sale. ? 4% in the third month after sale Budgeted sales are as follows: ? January $170,000 ? February $190,000 ? March $200,000 ? April $210,000 ? May $200,000 ? June $190,000 . What are the budgeted cash collections for May? Question #3 (30 points) Expected production (units) 8,000 Standard pounds of DM usage per unit 3.00 Standard DM price per pound $5 Standard DML hours per unit 5.00 Standard DML rate per hour $15.00 Standard VMOH rate $6.00 per DLH Standard FMOH rate $8.00 per DLH Actual Units produced 7,800 Pounds of DM purchased 25,000 Total cost of DM purchased $130,000 Pounds of DM used 23,100 DML hours worked 40,100 Total cost of DML $585,460 VMOH $250,000 FMOH $350,000 a) Calculate the following variances: Direct materials price variance Direct materials efficiency variance Direct manufacturing labor rate variance Direct manufacturing labor efficiency variance VMOH spending variance VMOH efficiency variance FMOH spending variance FMOH production-volume variance b) Explain what each of the calculated variances imply about the firm?s operations: Direct materials price variance Direct materials efficiency variance Direct manufacturing labor rate variance Direct manufacturing labor efficiency variance VMOH spending variance VMOH efficiency variance FMOH spending variance FMOH production-volume variance c) Prepare the following journal entries: Purchase of direct materials Usage of direct materials Paying of wages for direct manufacturing labor Incurrence of VMOH & FMOH Application of VMOH & FMOH to production Closing out VMOH and FMOH accounts Question #4 (8 points) Consider the following information: Bud CM per Unit Bud Market Size (units) Bud Market Share Act CM per Unit Act Market Size (Units) Act Market Share $4.50 4,800,000 10% $4.20 3,960,000 15% Calculate the following variances: Market size variance Market share variance Question #5 (6 points) List and describe the 4 criteria that can be used to allocate costs to cost objects. As part of your answer, be sure to discuss the strengths and weaknesses of the criteria. Question #6 (9 points) a) Why is it a good idea for a firm to allocate corporate costs to operating units? b) What are 2 examples of corporate costs that can be allocated to operating units? c) What is the danger in allocating corporate costs to operating units? Question #7 (15 points) The ABC Company has two operating divisions and two support divisions. The following table presents the amount of hours of service provided by the two support divisions: OP 1 OP 2 SUP 1 SUP 2 SUP 1 2000 4,000 0 2,000 SUP2 6,000 3,000 1,000 0 The costs for the four departments appear below: Department Costs OP 1 $350,000 OP 2 $400,000 SUP 1 $250,000 SUP 2 $170,000 a) Allocate the support department costs to the operating departments using the direct method. b) Allocate the support department costs to the operating departments using the step-down method, starting with Support Department 1. c) State the equations one would use to allocate the support department costs to the operating departments using the reciprocal method. You do not need to solve the equations!,Thank you, I need this assignment by the ninth,Good afternoon, I hope this is not to much to ask and I understand you are working on this assignment. Is it possible that whatever you have finish thus far you send it to me. I have problems similar to these and I would like to compare to see if I am doing them right. Thank you!,You are the best. Thank you!,Good afternoon, After reviewing the questions, I realized that 1 was missing from the assignment: Question #8 (16 points) A company purchases and processes 15,000 gallons of raw material at a cost of $60,000. From this process, it produces 1,200 pounds of JP1 and 1,800 pounds of JP2. JP1 can be sold for $21 per pound or processed further into 12,000 units of FP1 at a total cost of $12,750. FP1 has a selling price of $4 per unit. JP2 can be sold for $26 per pound or processed further into 20,400 units of FP2 at a total cost of $26,250. FP2 has a selling price of $5 per unit. Assume that the company sells only FP1 and FP2. In other words, it further processes both joint products. Also, assume there is no beginning or ending inventory. a) Allocate the joint costs to JP1 and JP2 using the physical measure method (based on pounds), sales value at split off method, the NRV method, and the constant gross margin percentage NRV method. b) Is it a good idea for the firm to further process the joint products? Be sure to justify your conclusions with specific calculations This was the last question that I had. Would I have to pay extra to get an answer to this question? Also, have you gotten anymore answers to the variances for Number 3. If you have can you send me an update please? Thank you!,Ok, no problem. Did you finish question number 3?,Ok, no problem. I also did not recieve an answer to number 7 and I submitted the other question in a new thread. Thank you!,HI, I have not herad anything in reference to question 3 or 7.,Thank you for question 7. Are you still working on question 3?,Sir, I have to submit question number 3 by midnight tonight. Will it be ready?,Can you give explianations why the variances are favorable and unfavorable and also the journal entries?

 

Paper#6353 | Written in 18-Jul-2015

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