. Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 0.5 pounds 6 pounds 1 pound Metal Direct manufacturing labor-hours Machine-hours (MH) 3 hours 5 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 290 pounds Beginning inventory Target ending inventory 70 pounds 410 pounds 65 pounds $217 Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Dog-eriffic Cat-allac Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 10 30 10 19 $1,000 $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours Inspection time per batch 0.5 hour 0.7 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.
. Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 0.5 pounds 6 pounds 1 pound Metal Direct manufacturing labor-hours Machine-hours (MH) 3 hours 5 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 290 pounds Beginning inventory Target ending inventory 70 pounds 410 pounds 65 pounds $217 Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Dog-eriffic Cat-allac Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 10 30 10 19 $1,000 $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours Inspection time per batch 0.5 hour 0.7 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Q.prepare
Transcribed Image Text:. Animal Gear Company makes two pet carriers, the
Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller.
Information for the two products for the month of April is given in the following tables:
Input Prices
Direct materials
Plastic
Metal
Direct manufacturing labor
$5 per pound
$4 per pound
$10 per direct manufacturing labor-hour
Transcribed Image Text:Input Quantities per Unit of Output
Cat-allac
Dog-eriffic
Direct materials
Plastic
4 pounds
0.5 pounds
6 pounds
1 pound
Metal
Direct manufacturing labor-hours
Machine-hours (MH)
3 hours
5 hours
11 MH
19 MH
Inventory Information, Direct Materials
Plastic
Metal
290 pounds
Beginning inventory
Target ending inventory
70 pounds
410 pounds
65 pounds
$217
Cost of beginning inventory
$1,102
Animal Gear accounts for direct materials using a FIFO cost-flow assumption.
Sales and Inventory Information, Finished Goods
Dog-eriffic
Cat-allac
Expected sales in units
530
225
$ 310
$ 205
Selling price
Target ending inventory in units
Beginning inventory in units
Beginning inventory in dollars
10
30
10
19
$1,000
$4,650
Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory.
Animal Gear uses an activity-based costing system and classifies overhead into three activity pools:
Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per
machine-hour, and $15 per inspection-hour, respectively. Other information follows:
Cost-Driver Information
Cat-allac
Dog-eriffic
Number of units per batch
Setup time per batch
25
1.50 hours
1.75 hours
Inspection time per batch
0.5 hour
0.7 hour
If necessary, round up to calculate number of batches.
Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex-
pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable
nonmanufacturing cost is sales commission, equal to 1% of sales revenue.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education