A local store, Waterway, has sold out of its signature item, the classic rocking chair, for the past five years straight. Waterway hascapitalized on a product that appeals to nostalgic consumers of all ages. To evaluate its performance for the year just ended, where3,400 units were produced compared to the 3,100 planned units, the accounting team gathered the following information......(a)Actual board feet purchased, 186,700; actual board feet used. 168,300; budgeted board feet per unit, 50.Actual price per board foot, $1.18; budgeted price per board foot, $1.20.Actual DL hours used, 6,700; budgeted DL hours per unit, 2.Actual DL rate per hour, $20.10; budgeted DL rate per hour, $20.Actual variable-MOH cost, $23,450; budgeted variable-MOH rate. $3.60 per DL hour.Actual fixed-MOH cost, $52,595; budgeted fixed-MOH rate, $8.50 per DL hour.Prepare a standard cost card for each product cost, and conduct a variance analysis for each. Specifically, determine the amountand sign of the following variances: (1) DM price and efficiency variances, (2) DL price and efficiency variances, (3) variable SUPPORTprice and efficiency variances, and (4) fixed-MOH price and volume variances.Show Transcribed TextPrice varianceEfficiency variancePrice varianceVolume varianceDMDLFixed-MOH$$$$Standard Cost Card$Variable-MOH $$$Standard cost per unitDMDMFixed-MOHC$$DSUPPORT

A Standard Cost Card is a detailed record or document that provides a breakdown of the standard…

Answered: A local store, Waterway, has sold out…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 180 units at $49 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 270-unit purchase at $54 per unit; the second was a 355-unit purchase at $56 per unit. During the period, it sold 500 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. b. LIFO. c. Weighted average. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Weighted Average FIFO LIFO Cost of goods sold Ending inventory
Between The Ears (BTE.com) is a popular Internet music store. During the current year, the company's cost of goods available for sale amounted to $472,000. The retail sales value of this merchandise amounted to $826,000. Sales for the year were $728,000. At year-end, BTE.com takes a physical inventory. The general manager walks through the warehouse counting each type of product and reading its retail price into a recorder. From the recorded information, another employee prepares a schedule listing the entire ending inventory at retail sales prices. The schedule prepared for the current year reports ending inventory at $26,491 at retail sales prices. Required: a. Using the retail method, estimate (1) the cost of goods sold during the year and (2) the inventory at the end of the year. b-1. Use the cost ratio computed in part a to reduce the inventory counted by the general manager from its retail value to an estimate of its cost. b-2. Determine the estimated shrinkage losses (measured…
Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,100 kayaks and sold 850 at a price of $1,100 each. At year-end, the company reported the following income statement information using absorption costing. Sales (850 × $1,100) $ 935,000 Cost of goods sold (850 × $425) 361,250 Gross profit 573,750 Selling and administrative expenses 220,000 Income $ 353,750 Additional Information a. Product cost per kayak under absorption costing totals $425, which consists of $325 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $110,000 of fixed overhead per year divided by 1,100 kayaks produced.b. The $220,000 in selling and administrative expenses consists of $85,000 that is variable and $135,000 that is fixed.Prepare an income statement for the current year under variable costing.
Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 each. At year-end, the company reported the following income statement information using absorption costing. Sales (775 × $1,025) $ 794,375 Cost of goods sold (775 × $500) 387,500 Gross profit 406,875 Selling and administrative expenses 250,000 Income $ 156,875 Additional Information a. Product cost per kayak under absorption costing totals $500, which consists of $400 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $102,500 of fixed overhead per year divided by 1,025 kayaks produced.b. The $250,000 in selling and administrative expenses consists of $105,000 that is variable and $145,000 that is fixed.Prepare an income statement for the current year under variable costing.
Research Case: Super Soups, Inc. is a Chicago based company that produces soup. Super Soups is publicly traded and has a December 31st fiscal year end. The demand for Super Soup’s products has increased significantly during COVID-19 (primarily to the number of people working from home). As a result of the increased demand on November 1, 2021 Super Soups purchased new production equipment which is more efficient than the old equipment. As a result of the purchase of the new equipment, Souper Soups will no longer use some of the old production equipment and is planning on offering it for sale. The original cost of the old equipment was $300,000 and $155,000 of depreciation had been recognized on this old equipment as of Nov. 1, 2021 which results in a net carrying value of $145,000. Additionally, the fair value of the old equipment is $115,000. The CEO and CFO agree that the equipment will be offered at a price of $125,000. It is expected that the sale should occur in early 2022. In…
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q2: Junko Company manufactures financial calculators and produced 97,000 units during the year. The finished goods inventory was 1,260 units on January 1 and 1,040 units on December 31. The average unit cost is $118, what was the cost of goods manufactured and the cost of goods sold for the year? Please choose the correct option and show your calculation to validate your selection: A. $11,446,000 & $11,471,960 B. $10,839,680 & $11,446,000 C. $11,446,000 & $12,839,680 D. $10,888,240 & $11,446,000
Bob Downe is auditing Red Cedar Office Furniture (RCOF), a manufacturer of office furniture and custom cabinets. RCOF was founded 25 years ago by a husband-and-wife team and has grown rapidly in the last five years as solid, environmentally friendly wooden furniture has grown in popularity. The company has inventory consisting of raw materials, work in process, and finished goods with a book value of $6,719,028.95. You have been assigned the task of testing the accuracy of the final inventory compilation for RCOF. You may assume that you have separately observed the inventory and that you are satisfied that the inventory was accurately counted. However, you need to test that quantities were accurately transcribed to the final accumulation and valuation of inventory and that the inventory is correctly priced and accumulated. A file showing the client’s accumulation of inventory is available in Wiley Course Resources. This case will guide you through the process of selecting a sample…
! Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 640 sun shades in May and 360 in June. Each shade sells for $161. Shadee's beginning and ending finished goods inventories for May are 60 and 40 shades, respectively. Ending finished goods inventory for June will be 65 shades. Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to I have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles. Budgeted Cost of Poles Purchased May June
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. Xenoceratops Corp, a manufacturing concern, started the year with the following inventory balances: widgets, $300,000 and fidgets, $400,000. During the year it purchased $800,000 more of widgets and $1,200,000 more of fidgets. Costs incurred to get the widgets and fidgets ready for sale were $200,000 and $100,000, respectively, and the ending balances were, respectively, $500,000 and $300,000. How much cost of goods sold were there for each product? a. $600,000 widgets; 1,200 fidgets b. $800,000 widgets; $1,400,000 fidgets c. $1,800,000 widgets; $2,000,000 fidgets d. correct answer not provided

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