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Would like to know cost of this assignment, plus there will be quizzes and exams...Parker Company manufactures and sells a single product. Required:1.A partially completed schedule of the company's total and per unit costs over a relevant range of 67,000 to 107,000 units produced and sold each year is given below. Complete the schedule of the company's total and unit costs. (Round the "Cost per unit" to 2 decimal places. Omit the "$" sign in your response.)Units Produced and Sold67,00087,000107,000Total costs:Variable costs$247,900$$Fixed costs390,000Total costs$637,900$$Cost per unit:Variable cost$$$Fixed costTotal cost per unit$$$2.Assume that the company produces and sells 97,000 units during the year at the selling price of $9.18 per unit. Prepare a contribution format income statement for the year.(Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)Parker CompanyContribution Format Income Statement$$*****************************Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company’s cost analyst has determined that if a truck is driven 144,000 miles during a year, the average operating cost is 12.2 cents per mile. If a truck is driven only 96,000 miles during a year, the average operating cost increases to 14.8 cents per mile.Required:1.Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Round the "Variable cost per mile" to 3 decimal places and the "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.)Variable cost$per mileFixed cost$per year2.Express the variable and fixed costs in the form Y = a + bX. (Round the "Variable cost per mile" to 3 decimal places and the "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.)Y =$+$X3.If a truck were driven 120,000 miles during a year, what total cost would you expect to be incurred? (Round the "Variable cost per mile" to 3 decimal places. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)Total annual cost$****************************************Frankel Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The company’s revenues and expenses (in British pounds) for the last three months are given below:Frankel Ltd.Comparative Income StatementsFor the Three Months Ended June 30AprilMayJuneSales in units1,6003,5005,250Sales revenue£ 276,800£ 605,500£ 908,250Cost of goods sold105,600231,000346,500Gross margin171,200374,500561,750Selling and administrative expenses:Shipping expense41,80068,40092,900Advertising expense70,90070,90070,900Salaries and commissions98,700174,700244,700Insurance expense8,1008,1008,100Depreciation expense42,30042,30042,300Total selling and administrative expenses261,800364,400458,900Net operating income (loss)£ (90,600)£ 10,100£ 102,850(Note: Frankel Ltd.’s income statement has been recast in the functional format common in the United States. The British currency is the pound, denoted by £.)Required:1.Identify each of the company’s expenses (including cost of goods sold) as either variable, fixed, or mixed.ExpensesClassificationCost of goods soldShipping expenseAdvertising expenseSalaries and commissionsInsurance expenseDepreciation expense2.Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.(Omit the "£" sign in your response.)Variable CostFixed CostFormula£per unit£Y = £+£ X£per unit£Y = £+£ X3.Redo the company’s income statement at the 5,250-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.)Frankel Ltd.Income StatementFor the Month Ended June 30£Variable expenses:£Contribution marginFixed expenses:£***********************************Alden Company has decided to use a contribution format income statement for internal planning purposes. The company has analyzed its expenses and has developed the following cost formulas:CostCost FormulaCost of goods sold$34 per unit soldAdvertising expense$190,000 per quarterSales commissions7% of salesAdministrative salaries$100,000 per quarterShipping expense?Depreciation expense$70,000 per quarterManagement has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters are given below:QuarterUnits SoldShippingExpenseYear 1:First36,000$180,000Second38,000$195,000Third43,000$237,000Fourth39,000$200,000Year 2:First37,000$190,000Second40,000$205,000Third54,000$252,000Fourth51,000$228,000Management would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter.Required:1.Using the high-low method, estimate a cost formula for shipping expense based on the data for the last eight quarters above. (Omit the "$" sign in your response.)Y = $ + $ X2.In the first quarter of Year 3, the company plans to sell 43,000 units at a selling price of $67 per unit. Prepare a contribution format income statement for the quarter. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)Alden CompanyBudgeted Income StatementFor the First Quarter of Year 3$Variable expenses:$Total variable expensesFixed expenses:Total fixed expenses$*********************************************Logan Products computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it estimated that 35,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $514,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Logan’s actual manufacturing overhead for the year was $682,868 and its actual total direct labor was 35,500 hours.Required:Compute the company’s predetermined overhead rate for the year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)Predetermined overhead rate$ per DLH************************Weaver Company's predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-200:Direct materials$290Direct labor$225Required:1.What is the total manufacturing cost assigned to Job A-200? (Omit the "$" sign in your response.)Total manufacturing cost$2.If Job A-200 consists of 80 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)Average cost$ per unit******************************The following cost data relate to the manufacturing activities of Black Company during the just completed year:Manufacturing overhead costs:Property taxes, factory$3,000Utilities, factory4,800Indirect labor9,900Depreciation, factory23,900Insurance, factory5,900Total actual manufacturing overhead costs$47,500Other costs incurred:Purchases of raw materials$31,200Direct labor cost$39,400Inventories:Raw materials, beginning$8,700Raw materials, ending$6,600Work in process, beginning$5,500Work in process, ending$7,500The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 11,600 machine-hours was recorded for the year. All raw materials ultimately become direct materials—none are classified as indirect materials.Required:1.Compute the amount of underapplied or overapplied overhead cost for the year. (Input the amount as a positive value. Omit the "$" sign in your response.)overhead cost$2.Prepare a schedule of cost of goods manufactured for the year. (Input all amounts as positive values. Omit the "$" sign in your response.)Black CompanySchedule of Cost Goods ManufacturedDirect materials:$:Raw materials available for use:Raw materials used in production$Total manufacturing cost::Cost of goods manufactured$**************************The following information is taken from the accounts of FasGrow Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.Manufacturing OverheadWork in Process(a) 375,000(b) 416,000Bal. 104,200(c) 763,400209,800Bal. 41,000 114,100(b) 416,000Bal. 80,700Finished GoodsCost of Goods SoldBal. 162,000(d) 828,400(d) 828,400(c) 763,400Bal. 97,000The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows:Work in process, ending$54,080Finished goods, ending108,160Cost of goods sold253,760Overhead applied$416,000For example, of the $80,700 ending balance in work in process, $54,080 was overhead that had been applied during the year.Required:1.Identify the reasons for entries (a) through (d).Item (a):Item (b):Item (c):Item (d):2.Assume that the company closes any balance in the manufacturing overhead account directly to cost of goods sold. Prepare the necessary journal entry. (Omit the "$" sign in your response.)General JournalDebitCredit3.Assume instead that the company allocates any balance in the manufacturing overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account. Prepare the necessary journal entry, with supporting computations. (Do not roundintermediate calculations. Omit the "$" sign in your response.)General JournalDebitCredit******************Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:Computer-hours84,000Fixed manufacturing overhead cost$1,272,000Variable manufacturing overhead per computer-hour$3.10During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:Computer-hours40,000Manufacturing overhead cost$795,000Inventories at year-end:Raw materials$430,000Work in process$120,000Finished goods$1,000,000Cost of goods sold$2,740,000Required:1.Compute the company’s predetermined overhead rate for the year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)Predetermined overhead rate$ per hour2.Compute the underapplied or overapplied overhead for the year. (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.Input the amount as positive value. Omit the "$" sign in your response.)overhead cost$3.Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate entry. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.Omit the "$" sign in your response.)General JournalDebitCredit4.Assume that the company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year. These amounts are $58,368 for work in process, $218,880 for finished goods, and $452,352 for cost of goods sold. Prepare the journal entry to show the allocation. (Round your intermediate calculations and percentage values to 2 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.)General JournalDebitCredit5.How much higher or lower will net operating income be for the year if the underapplied or overapplied overhead is allocated rather than closed directly to cost of goods sold? (Round your intermediate calculations and percentage values to 2 decimal places and final answers to the nearest dollar amount.Input the amount as positive value. Omit the "$" sign in your response.)Net operating income will be $ if the overhead is allocated among work in process, finished goods, and cost of goods sold rather than closed directly to cost of goods sold.******************"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. “I’m afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $5,000 on the Hastings job." "I just can’t figure it out," said Kovallas. "It seems we’re either too high to get the job or too low to make any money on half the jobs we bid anymore. What’s happened?"Lenko Products manufactures specialized goods to customers’ specifications and operates a job-order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year:DepartmentCuttingMachiningAssemblyTotal PlantDirect labor$280,000$400,000$420,000$1,100,000Manufacturing overhead$448,000$800,000$105,000$1,353,000Jobs require varying amounts of work in the three departments. The Hastings job, for example, would have required manufacturing costs in the three departments as follows:DepartmentCuttingMachiningAssemblyTotal plantDirect materials$14,000$1,500$7,600$23,100Direct labor$7,500$3,700$13,900$25,100Manufacturing overhead????The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs.Required:1.Assuming the use of a plantwide overhead rate:a.Compute the rate for the current year. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.)Predetermined overhead rate% of direct labor costb.Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job.(Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)Manufacturing overhead cost$2.Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:a.Compute the rate for each department for the current year. (Round your answers to the nearest whole percent. Omit the "%" sign in your response.)Predeterminedoverhead rateCutting Department%Machining Department%Assembly Department%b.Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job.(Round "Departmental predetermined overhead rate" to the nearest whole percent, other intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)Manufacturing overhead cost$4.Assume that it is customary in the industry to bid jobs at 100 % of total manufacturing cost (direct materials, direct labor, and applied overhead).a.What was the company's bid price on the Hastings job if plantwide overhead rate had been used to apply overhead cost? (Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)Company's bid price$b.What would the bid price have been if departmental overhead rates had been used to apply overhead cost?(Round "Departmental predetermined overhead rate" to the nearest whole percent, other intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)Company's bid price$5.At the end of the year, the company assembled the following actual cost data relating to all jobs worked on during the year:DepartmentCuttingMachiningAssemblyTotal plantDirect materials$840,000$90,000$420,000$1,350,000Direct labor430,000210,000440,0001,080,000Manufacturing overhead$830,000$980,000$95,000$1,905,000a.Compute the underapplied or overapplied overhead for the year, assuming that a plantwide overhead rate is used. (Input the amount as a positive value. Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)overhead cost$b.Compute the underapplied or overapplied overhead for the year, assuming that departmental overhead rates are used. (Input all amounts as positive values. Round "Departmental predetermined overhead rate" to the nearest whole percent, other intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)Cuttingoverhead cost$Machiningoverhead costAssemblyoverhead costTotal Plantoverhead cost$*************************Lindex Company uses a process costing system. The following data are available for one department for October:Percent CompletedUnitsMaterialsConversionWork in process, October 151,00095%60%Work in process, October 3131,00069%54%The department started 389,000 units into production during the month and transferred 409,000 completed units to the next department.Required:Compute the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.MaterialsConversionEquivalent units of productioncheck my workeBook Linkreferences******************************Billinstaff Industries uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:MaterialsLaborOverheadWork in process, May 1$15,100$23,364$111,309Cost added during May$91,955$15,576$74,206Equivalent units of production1,3001,2001,100Required:1.Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)MaterialsLaborOverheadCost per equivalent unit$$$2.Compute the total cost per equivalent whole unit. (Round your final answer to 2 decimal places. Omit the "$" sign in your response.)Total cost per equivalent unit$************************************The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.Information on work in the first department, Cooking, is given below for May:Production data:Pounds in process, May 1: materials100% complete; conversion 90% complete89,000Pounds started into production during May540,000Pounds completed and transferred tothe next department?Pounds in process, May 31:materials 80% complete; conversion 20% complete60,000Cost data:Work in process inventory, May 1:Materials cost$124,400Conversion cost$61,700Cost added during May:Materials cost$646,850Conversion cost$339,190The company uses the weighted-average method.Required:1.Compute the equivalent units of production.MaterialsConversionEquivalent units of production2.Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)MaterialsConversionCost per equivalent unit$$3.Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Omit the "$" sign in your response.)MaterialsConversionTotalCost of ending work in process inventory$$$Cost of units completed and transferred out$$$4.Prepare a cost reconciliation report for the month. (Omit the "$" sign in your response.)Cost ReconciliationCosts to be accounted for:$Total cost to be accounted for$Costs accounted for as follows:$Total cost accounted for$**********************************************Brady Products manufactures a silicone paste wax that goes through three processing departments— Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking Department. The Work in Process T-account for the Cracking Department for a recent month is given below:Work in Process—Cracking DepartmentInventory, May 1163,800Completed and transferred tothe Blending Department?Materials572,100Conversion152,640Inventory, May 31?The May 1 work in process inventory consisted of 90,000 pounds with $134,100 in materials cost and $29,700 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 338,000 pounds were started into production. The May 31 inventory consisted of 76,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.Required:1.Determine the equivalent units of production for May.MaterialsConversionEquivalent units of production2.Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)MaterialsConversionCost per equivalent unit$$3.Determine the cost of the units completed and transferred to the Blending Department during May. (Omit the "$" sign in your response.)MaterialsConversionTotalCost of units completed and transferred out$$$*********************************Nature’s Way, Inc., keeps one of its production facilities busy making a perfume called Essence de la Vache. The perfume goes through two processing departments: Blending and Bottling.The following incomplete Work in Process account is provided for the Blending Department for March:Work in Process—BlendingMarch 1 balance33,000Completed and transferredto Bottling (760,000 ounces)?Materials152,600Direct labor75,200Overhead479,000March 31 balance?The $33,000 beginning inventory in the Blending Department consisted of the following elements: materials, $7,500; direct labor, $5,000; and overhead applied, $20,500.Costs incurred during March in the Bottling Department were: materials used, $44,000; direct labor, $17,300; and overhead cost applied to production, $118,000.Required:1.Prepare journal entries to record the costs incurred in both the Blending Department and Bottling Department during March. (Omit the "$" sign in your response.)a.Raw materials were issued for use in production.b.Direct labor costs were incurred.c.Manufacturing overhead costs for the entire factory were incurred, $716,000. (Credit Accounts Payable and use a single Manufacturing Overhead control account for the entire factory.)d.Manufacturing overhead was applied to production using a predetermined overhead rate.e.Units that were complete with respect to processing in the Blending Department were transferred to the Bottling Department, $642,000.f.Units that were complete with respect to processing in the Bottling Department were transferred to Finished Goods, $730,000.g.Completed units were sold on account for $1,410,000. The cost of goods sold was $630,000.ItemsGeneral JournalDebitCredita.b.c.d.e.f.g.2.Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Blending Department’s Work in Process account is given above.)(Record the transactions in the given order. Omit the "$" sign in your response.)Raw materials$210,600Work in process-Bottling department$57,000Finished goods$21,000After posting the entries to the T-accounts, find the ending balances in the inventory accounts and the manufacturing overhead account.Accounts ReceivableRaw MaterialsBal.Bal.Work in Process -Blending DepartmentBal.Bal.Work in Process -Bottling DepartmentBal.Bal.Finished GoodsBal.Bal.Manufacturing OverheadBal.Accounts PayableSalaries and Wages PayableSalesCost of Goods Sold
Solution: Managerial Accounting homework week 1