Need answer the general accounting question not use ai A lumber mill bought a shipment of logs for $58,000. When cut, thelogs produced a million board feet of lumber in the following grades.Compute the cost to be allocated to Type 1 and Type 2 lumber,respectively, if the value basis is used.Type 1-400,000 bd. ft. priced to sell at $0.12 per bd. ft.Type 2-400,000 bd. ft. priced to sell at $0.06 per bd. ft.Type 3-200,000 bd. ft. priced to sell at $0.04 per bd. ft.a. $58,000; $24,000.b. $34,800; $17,400.c. $10,944; $5,800.d. $24,000; $8,000.e. $16,000; $16,000.

Step 1:- Definition of CostCost is a business's monetary expenditure to produce its merchandise,…

Answered: A lumber mill bought a shipment of logs…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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The standard cost card for a product shows, Material cost 2 kg @ GH¢2.50 each = GH¢5.00 per unit Labour 2 hours @ GH¢10 each = GH¢20 per unit The actual which has emerged from business operations are as follows. Production – 8,000 units, material consumed – 16,500 kg @ GH¢2.40 each = GH¢39,600, Wages paid 18,000 hours @ GH¢8 each = GH¢144, 000 Calculate; a) Labour Cost Variance b) Labour Rate Variance c) Labour Efficiency Variance d) Material Cost Variance e) Material Price Variance f) Material Quantity Variance
Schwinn started producing a new product which requires an investment of $2,000,000 in assets. The costs to produce and sell 75,000 units are as follows. Additionally, the Company's policy is to earn 8% return on invested assets. How should they price the items using the Product Cost Method? Variable Costs: Fixed Costs: Factory OH $750,000 $8.00 / unit $5.00 / unit $3.50 /unit DM SG&A $300,000 DL FOH SG&A $4.50 / unit Total 22.00 / unit
An olive oil processor incurred the following plant maintenance costs: 59,000 units processed with maintenance costs of $78,000, and 42,000 units processed with maintenance costs of $66,000. What is the variable cost per unit processed? a. $1.12 b. $1.57 c. $1.86 d. $1.32 e. $0.71
Rusa Company manufactures a part for use in its production of hats. When 10,000 items are produced, the costs per unit are: RM Direct materials 0.75 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhcad Total 3.00 1.50 1.60 6.85 Axe Company has offered to sell to Rusa Company 10,000 units of the part for RM6.00 per unit. The plant facilities could be used to manufacture another item at a savings of RM9,000 if Rusa accepts the offer. In addition, RM1.00 per unit of fixed manufacturing overhead on the original item would be eliminated. Required: i) What is the relevant per unit cost for the original part? ii) Which alternative is the best for Rusa Company? By how much? iii) What are opportunity costs? Explain why opportunity costs are not recorded in financial accounting systems.
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable costs of $65 per cubic yard. The company has fixed expenses of $15,000 per month. In August, the company sold 240 cubic yards of Grade A mulch. A. Calculate the contribution margin per unit for Grade A mulch. B. Calculate the contribution margin ratio of the Grade A mulch. C. Prepare a contribution margin income statement for the month of August.
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipment
Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in 1,000-gallon drums for 2.000. Processing costs are 3,000 to process the 1,000 gallons of Duointo 800 gallons of Big and 200 gallons of Mini. The selling price is 9 per gallon for Big and4 per gallon for Mini. If the physical units method is used to allocate joint costs to the finalproducts, the total cost allocated to produce Mini is: a. 500. b. 4,000. c. 1,000. d. 4,500.
Annual production of Product X is 400,000 annually. Each unit of Product X requires 2.5 units of material J. Product X is sold for 500 per unit and its total manufacturing cost is 300. Material J is purchased at 60 per unit. Carrying cost per unit of material J is 1 per unit while the ordering cost is 500 per order. How any units of material j shall the company order each time to minimize total relevant cost of inventories? a. 31,623 b. 20,000 c. 30,263 d. 26,336 e. None of these
San Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed overhead 16,200 An outside supplier has offered to sell San Clemente the subcomponent for $2.85 a unit. If San Clemente accepts the offer, by how much will net income increase (decrease)?

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