1 2 Marigold produces four kinds of ice cream from a single process. The total joint costs of $72,400 resulted from 3,300 gallons of vanilla, 2,800 gallons of strawberry, 2,100 gallons of chocolate, and 1,100 gallons of Neapolitan ice cream. Marigold sells the vanilla ice cream for $3.00 a gallon, and the other three flavours are sold for $3.50 per gallon. How much of the joint cost will be allocated to each product, if the sales value at split-off method is used? Davis Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for November: Molding Grinding Finishing Direct materials $143,300 $15,700 $10,200 Direct labor 13,600 34,200 22,800 19,400 Applied overhead 17,000 135,900 During November, 8,800 components were completed. There is no beginning or ending WIP in any department. Required: 1. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product transferred in from a prior department, and total manufacturing cost. 2. Calculate the unit cost.

1 2 Marigold produces four kinds of ice cream from a single process. The total joint costs of $72,400 resulted from 3,300 gallons of vanilla, 2,800 gallons of strawberry, 2,100 gallons of chocolate, and 1,100 gallons of Neapolitan ice cream. Marigold sells the vanilla ice cream for $3.00 a gallon, and the other three flavours are sold for $3.50 per gallon. How much of the joint cost will be allocated to each product, if the sales value at split-off method is used? Davis Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for November: Molding Grinding Finishing Direct materials $143,300 $15,700 $10,200 Direct labor 13,600 34,200 22,800 19,400 Applied overhead 17,000 135,900 During November, 8,800 components were completed. There is no beginning or ending WIP in any department. Required: 1. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product transferred in from a prior department, and total manufacturing cost. 2. Calculate the unit cost.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 21E: This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total...

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Oriole produces four kinds of ice cream from a single process. The total joint costs of $77,900 resulted in 3,000 gallons of vanilla, 2,700 gallons of strawberry, 2,100 gallons of chocolate, and 1,000 gallons of Neapolitan ice cream. Oriole sells the vanilla ice cream for $3.00/gallon and sells each of the other three flavors for $3.50/gallon. How much of the joint cost will be allocated to each product if the sales value at split-off method is used? (Round proportion to 4 decimal places, e.g. 0.2513 and final answers to O decimal places, e.g. 5,125.) Allocated joint costs $ Vanilla $ Strawberry $ Chocolate Neapolitan
Novak produces four kinds of ice cream from a single process. The total joint costs of $87,800 resulted in 3,000 gallons of vanilla, 3,300 gallons of strawberry, 1,900 gallons of chocolate, and 900 gallons of Neapolitan ice cream. Novak sells the vanilla ice cream for $2.00/gallon and sells each of the other three flavors for $2.50/gallon. How much of the joint cost will be allocated to each product if the sales value at split-off method is used? (Round proportion to 4 decimal places, e.g. 0.2513 and final answers to O decimal places, e.g. 5,125.) Allocated joint costs Vanilla $ Strawberry $ Chocolate ta Neapolitan
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Bronte Confections is known for its rich dark chocolate fudge. Bronte sells its fudge to local retailers. A "unit" of fudge is a 10-pound batch. The standard quantities of ingredients for a batch include 6 cups of sugar, 23 ounces of chocolate chips, 13 ounces of butter, and 25 ounces of evaporated milk. The standard costs for each of the ingredients are as follows: $0.25 per cup of sugar, $0.14 per ounce of chocolate chips, $0.11 per ounce of butter, and $0.08 per ounce of evaporated milk. Calculate the standard direct material cost per batch of fudge. Calculate the standard direct material (DM) cost per batch of fudge. (Enter all dollar amounts to two decimal places.) Standard Quantity X Standard Price Standard Cost Sugar per cup Chocolate chips per ounce Butter per ounce Evaporated milk per ounce Standard DM cost per batch X X
This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total order-filling costs of 900,000. There are two types of customers: those who order 50,000 pound lots (small customers) and those who order 250,000 pound lots (large customers). Each customer category is responsible for buying 1,500,000 pounds. The selling price per pound is 2 per lb for the 50,000 pound lot and 3 per lb for the larger lots, due to differences in the type of chocolate. ABC would likely assign order-filling costs to the customer type as follows: a. 450,000, small; 450,000, large (using pounds as the driver) b. 360,000, small; 540,000, large (using revenue as the driver) c. 750,000, small; 150,000, large (using number of orders as the driver) d. 450,000, small; 450,000, large (using customer type as the driver)
Aunt Molly's Old Fashioned Cookies bakes cookies for retail stores. The company's best-selling cookie is the chocolate nut supreme, which is marketed as a gourmet cookie and regularly sells for $8.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly's normal monthly production of 400,000 pounds is as follows: Cost Item Quantity Standard Unit Cost Total Cost Direct material: Cookie mix 10 oz. $0.02 per oz. $0.20 Milk Chocolate 5 oz. $0.15 per oz. $0.75 Almonds 1 oz. $0.50 per oz. $0.50 Total $1.45 Direct Labor Mixing 1 min $14.40 per hr. $0.24 Baking 2 min $18.00 per hr. $0.60 Total $0.84 Cost Item Quantity Standard Unit Cost Total Cost Variable overhead 3 min $32.40 per direct-labor hr. $1.62 Total Standard cost per pound $3.91 Aunt Molly's management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. The month of April's…
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Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 404,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.23. Zachary actually paid $115,385 to purchase 412,090 cups of concentrate, which was used to make 203,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Price variance" to 2 decimal places.) e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Usage variance"…
The Delmar Beverage Company produces a premium root beer that is sold throughout its chain of restaurants in the Midwest. The company is currently producing 1,700 gallons of root beer per day, which represents 80% of its manufacturing capacity. The root beer is available to restaurant customers by the mug, in bottles, or packaged in six-packs to take home. The selling price of a gallon of root beer averages $13, and cost accounting records indicate the following manufacturing costs per gallon of root beer: Raw materials Direct labor Variable overhead Fixed overhead Total absorption cost $ 1.56 1.67 1.11 1.53 $ 5.87 In addition to the manufacturing costs just described, Delmar Beverage incurs an average cost of $1.05 per gallon to distribute the root beer to its restaurants. SaveMore Incorporated, a chain of grocery stores, is interested in selling the premium root beer in gallon jugs throughout its stores in the St. Louis area during holiday periods and has offered to purchase root…
M & Z Creameries, Corp. process milk and sugar to make vanilla ice cream. They sell their ice cream in large one-gallon containers to schools, hospitals, nursing homes, and restaurants. Each batch produces 1,700 gallons of ice cream at a cost of $840 per batch. M & Z Creameries, Corp. sells the one-gallon containers for $23.00 each and spends $0.35 for each plastic container. M & Z Creameries, Corp. has started to determine the feasibility of adding chocolate and strawberries and sell pint-size portions at local supermarkets.Further processing of each batch of ice cream could produce 24,400 pint-sized portions. A recent market study determined a demand existed for this type of product. M & Z Creameries, Corp. could sell each pint-sized portion for $2.70. Additional packaging would cost $0.30 per pint, and the additional materials would cost $0.25 per pint. There would be no change in fixed costs.Should they continue to sell only one-gallon size containers of vanilla ice…
Damato has the practical capacity to produce 15,000 Holiday Panettone (an Italian sweet bread). Based upon practical capacity, the company's average cost = $35.00. Fixed expenses represent 40.0% of the average cost. Currently, Damato sells 13,000 Panettone at a price of $28.00 each. Gustiamo's Italian Bakery requests an order of 5,000 Panettone at a special price = $24.00. The 15.0% sales commission paid on the current sales will be eliminated on the special order. Special packaging will increase direct material costs by $2.00 per Panettone. Gustiamo's is a very large seller of Panettone and Damato would buy a packaging machine for $20,000. The packaging machine would only be required for Gustiamo's special order. Compute the change in Damato's income due to the special order. O Income will INCREASE $1,200 O Income will INCREASE $6,000 O Income will DECREASE $15,000 O Income will DECREASE $24,000 O None of the other answers are correct
Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $20.00 per pound and the flakes for $16.00 per pound. On average, 100 pounds of lobster are processed into 59 pounds of tails and 27 pounds of flakes, with 14 pounds of waste. Assume that the company purchased 3,400 pounds of lobster for $4 per pound and processed the lobsters with an additional labor cost of $8,000. No materials or labor costs are assigned to the waste. If 1,858 pounds of tails and 829 pounds of flakes are sold, calculate the allocated cost of the sold items and the allocated cost of the ending inventory. The company allocates joint costs on a value basis. (Round your answers to nearest whole number. Round cost per pound answers to 2 decimal places.)