DB3 Cost Price and Viability v12 - Assignment
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FINA6016
DROPBOX 3 - EXPORT COSTING, PRICING & TRANSACTION VIABILITY
v12
Submitted to:
Katsademas
Your Role:
Tasks
Seven tasks to complete
1
Identify your group members
2
maximum of 2 members
What is your INCO term?
NAME
Student ID
One Jane Dow
1234568
Two Jane Dow
7654321
3
Incorporate the following eight parameters
Your calculations from the costing sheet will provide
into the Costing Sheet (next worksheet)
the answers to tasks 4, 5 and 6.
Note: Only the following eight entries are to be entered in the worksheet.
All other lines are to remain blank.
4
3.1
Domestic cost of LAV
$ 5,485,000 3.2
Modifications reguired in order to
Comply with EU safety standards
5
$ 3,640,000 3.3
Transportation costs (pick the method)
Pick between AIR:
$ 27,600 per flight hour
$ 192 per mile flown
Or LAND/SHIP:
$ 224 per nautical mile
$ 66 per road km
3.4
Insurance is based on
115% of CFR cost
6
with a rate of
0.075%
3.5
Freight Forwarding fees
$ 464,750.00 3.6
Import Taxes
100% of CIP cost
Based on the information you now have
with a rate of
6.510%
answer question 7.
3.7
Export Credit Insurance is based on
7
Is this a viable transaction? Explain
100% of CIP cost
with a rate of
19.470%
3.8
Profit Margin needs to be
10.1500% of Export Sales Price
You represent GDLS. GDLS is negotiating with the Republic of Lithuania the sale of the GDLS LAV700.
Complete the SEVEN tasks below. Note that Task #3 has 8 components.
Completion of these tasks allow you to:
calculate the export costs of sending the LAV700 to Lithuania
determine the export price to make the desired profit and
explain if this is a viable transaction or not depending on the selected INCO
term (Task #2)
What is your Export Cost
(in $)?
Taken into account?
What is your Profit Margin
(in $)?
What is your Export Sales Price
?
Categories Items
EXPORT COSTIN
1. Product costs Domestic Cost: Raw materials
Cost/Unit
Domestic Cost: Direct labour Units
General manufacturing expenses Sales
Modification costs
Profit
Administration Domestic financing fees COSTS
SALE PRICE
Total Product cost xxxxxxx $ - $ - Less taxes refunded 2. Costs of sales and promotion Travel expenses $ 56,444,232.00 Promotional activities Communications Translation Legal and negotiating expenses Export sales commissions Total Cost of sales and promotion
xxxxxxx $ 56,444,232.00 $ 56,444,232.00 3. Preparation for transport Labelling Export packing Marking cases Strapping costs Total COST EXW xxxxxxx $ 56,444,232.00 $ 56,444,232.00 4. Other costs of preparation for transport Consular invoices
Other documents Freight forwarders fees Insurance Total cost (ready for transport) xxxxxxx $ 56,444,232.00 $ 56,444,232.00 5. Inland transportation costs Loading charges Transport to main carriage Tailgating (maritime) Unloading charges Total COST FCA
xxxxxxx $ 56,444,232.00 $ 56,444,232.00 6. Port charges and loading Demurrage and storage Wharf charges
Loading onto vessel
Other charges Total COST FOB xxxxxxx $ 56,444,232.00 $ 56,444,232.00 7. Main carriage Freight
Miscellaneous Total COST CFR xxxxxxx $ 56,444,232.00 $ 56,444,232.00 8. Insurance coverage Insurance of goods (usually 110% of value)
Total COST CIP
xxxxxxx $ 56,444,232.00 $ 56,444,232.00 9. Unloading charges (these are usually included in the ocean freight cost) Unloading Other special charges $ 34,444.00 Storage 10. Import duties and delivery
Import taxes (duties) Broker’s fees Delivery to client Loading
Transport to main carriage Total COST DDP
xxxxxxx $ 56,478,676.00 $ 56,478,676.00 11. Export financing costs (incurred for all INCO terms)
Financial instruments ( such as letters of Credit)
Discounting charges
Export Credit insurance
Hedging of foreign exchance risk
xxxxxxx $ 56,478,676.00 $ 56,478,676.00 Export SALES PRICE
xxxxxxx $ 56,478,676.00 EXPORT COST - before profit margin
Profit margin
(as a % of export sales price
)
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NG SHEET
56,478,676 1 56,478,676 - Sale/Unit
$ - $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00
$ 56,478,676.00 $ 56,478,676.00 $ 56,478,676.00
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Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service.
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Calculate:
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Sum all activity costs to determine the total.
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2 Total costs and distribution of resource consumption across activity cost pools:
3
4
Activity Cost Pools
Customer
Product
Customer
Total Cost
Orders
Development
Relations
Other
Total
6 Production Department:
7
Indirect factory wages
$
400,000
50%
30%
15%
5% 100%
Factory equipment depreciation
Factory utilities
10 Factory property taxes and insurance
8
150,000
55%
30%
0%
15% 100%
9
120,000
59%
34%
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7%
100%
75,000
57%
33%
0%
10%
100%
11
12 General Administrative Department:
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275,000
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40,000
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16%
15%
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Requirement 3:
Either print a copy of your worksheet or make a copy of the worksheet in your workbook before proceeding. You will need to refer
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Change the percentage completion with respect to conversion for the beginning inventory from 25% to 35%, but keep everything the
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A
1 Chapter 5: Applying Excel
2
3
4
Data
Beginning work in process inventory:
Units in process
5
6
7
8
9
10
Conversion cost
11 Units started into production during the period
12 Costs added to production during the period:
13
Materials cost
14
Conversion cost
Completion with respect to materials
Completion with respect to conversion
Costs in the beginning work in process inventory:
Materials cost
15 Ending work in process inventory:
16
Units in process
17
Completion with respect to materials
Completion with respect to conversion
18
$
$
Equivalent units of production for materials
B
700
%
35 %
7,674
11,749…
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QUESTION 1
E19.5 (Рg. 19-31)
E19.5 (LO 2) Gala Company is a manufacturer of laptop computers. Various costs
and expenses associated with its operations are as follows.
Classify various costs into different cost categories.
1. Property taxes on the factory building.
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Homework: Cost Management and Allocation Assignment
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State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments
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4.
points
Administration Communications
Facilities
Deposits
$8,320,000 $4,600,000
447, 000
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Direct costs
$200,000
24,000
$290,000
31,000
$253,000
20,500
Employee hours
Number of employees
Square footage occupied
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360,000
8.
14
6.
230
130
4,600
13,800
5,100
244, 100
203,300
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QUESTION 2
E19.8 (Pg. 19-31)
E19.8 (LO 3) Lopez Corporation incurred the following costs while manufacturing its
product.
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expense
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Delivery expense
14.000
Property taxes on
store
Labor costs of
assembly-line workers
Factory supplies used
7,500
21.000
110,000
Sales
35,000
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50.000
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P19.2A (Pg. 19-36)
P19.2A (LO 2) Bell Company, a manufacturer of audio systems, started its
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Segregation of Mixed Costs
3. Charity Company wants to analyze the behavior of its selling costs for budgeting purposes. Cost drivers
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P 42,500
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15,000
34,000
17,500
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Perez Company reported the following operating results for two consecutive years:
Required
Compute each income statement component for each of the two years as a percentage of sales
due to rounding. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be e
PEREZ COMPANY
Vertical Analysis of Income Statements
Percentage of
Sales
Percentage of
Sales
Year 4
Year 3
Sales
1,077,500
00S'000'L
Cost of goods sold
550,275
000 Z09
Gross margin on sales
450,225
475,500
Operating expenses
130,500
149,800
319.725
325,700
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Cost Flow Methods
The following three identical units of Item K113 are purchased during April:
Item Beta
Units
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1
$171
April 15
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179
3
$525
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b. Last-in, first-out (LIFO)
c. Weighted average cost
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Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order
costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs
pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human
resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $242,000. Each department's
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Accounting excel practice problem - I already solved the first few sub parts to this question - I just need the last sub part answered. I attached a picture of the instructions and a picture of the excel spreadsheet to answer the remaining "formulas".
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An analyst built the following spreadsheet, complete with named ranges (for example, cell B2 is named "Unit_Price" based on the
heading in cell A2).
A
2
Unit Price
19
3.
Unit Cost
8.57
4
Unit Gross Profit
Unit Price
Unit Cost
5.
6.
Quantity Sold
5,800
7
8.
Gross Revenue
Quantity Sold x Unit Price
Quantity Sold x Unit Cost
3,200
Gross Revenue - Variable Costs
Variable Costs
10
Fixed Costs
11
Net Profit
Fixed Costs
12
Profit per Unit
= Net Profit/Quantity Sold
After entering the data shown below in cells B2, B3, B6, and B10, what values should appear
Gross Profit and Profit per Unit" answers to 2 decimal places.)
the following cells? (Round your "Unit
Cell
Value
B4 (Unit_Gross_Profit)
B8 (Gross Revenue)
B9 (Variable_Costs)
B11 (Net Profit)
B12 (Profit_per_Unit)
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4. From the following information, find out sales at BEP in units.
Variable cost per unit = $15
Sales per unit = $20
Fixed expenses = $54,000
Solution-
Contribution per unit = SP per unit - VC per unit= 20-15= $5
BEP IN UNITS = FC/CONTRIBUTION PER UNIT
= 54000/5
ull Rinki Maheshwari
= 10,800 UNITS
5. Calculate (i) BEP, and (ii) Margin of Safety based on the following
information:
Sales = $100,000
Total cost = $80,000
Fixed cost = $20,000
Net profit = 80,000
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Within the costing system of a manufacturing company the following types of expenses were incurred:
Cost of oils used to lubricate production machinery
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Commission paid to sales representatives
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A U.S. MANUFACTURING COMPANY OPERATINGA SUBSIDIARY IN AN LDC (LESS
DEVELOPED COUNTRY) SHOWS THE FOLLOWING RESULTS:
LDC
20 000
U.S.
100 000
SALES (UNITS)
LABOR (HOURS)
RAW MATERIALS (CURRENCY)
CAPITAL REQUIREMENTS (HOURS)
20 000
15 000
$20 000
FC 20 000
60 000
5 000
A) CALCULATE PARTIAL LABOR PRODUCTIVITY AND CAPITAL PRODUCTIVITY
FIGURES FOR THE PARENT AND SU BSIDIARY. DO THE RESULTS SEEM
MISLEADING?
B) NOW COMPUTE THE MULTIFACTOR PRODUCTIVITY FIGURES FOR LABOR
AND CAPITAL TOGETHER. ARE THE RESULTS BETTER?
C) FINALLY, CALCULATE RAW MATERIAL PRODUCTIVITY FIGURES (UNIT/S
WHERE $1 = FC 10). EXPLAIN WHY THESE FIGURES MIGHT BE GREATER IN THE
SUBSIDIARY.
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ivity Based Costing Assignment i
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Required information
[The following information applies to the questions displayed below.]
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3
Part Z
Part X
Totals
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Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming.
The company budgets overhead cost of $265,000 in the Molding department and $225,000 in the Trimming
department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours
(DLH) in Trimming. Actual production information follows.
Number of
Units
3,000
4,000
F3
Complete this question by entering your answers in the tabs below.
R
F4
Q Search
%
Molding Department
Hours per Unit
2.0 MH per unit
2.5 MH per unit
Required:
1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental ove
rate for the Trimming…
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