Almond Treats manufactures various types of cereals that feature almonds Company has approached Almond Treats with a proposal to sell the compa selling cereal at a price of $22,000 for 20,000 pounds. The costs shown ar with production of 20,000 pounds of almond cereal: Direct material $13,100 Direct labor 5,000

Almond Treats manufactures various types of cereals that feature almonds Company has approached Almond Treats with a proposal to sell the compa selling cereal at a price of $22,000 for 20,000 pounds. The costs shown ar with production of 20,000 pounds of almond cereal: Direct material $13,100 Direct labor 5,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

MAS 1 Company sells 10,000 units of its products to SM Supermarket. Its selling price is P 50 per unit. The details of its costs are as follows: Direct Materials P 6 per unit Direct Labor P 10 per unit Variable Factory Overhead P 4 per unit Fixed Factory Overhead P 150,000 Variable Expenses P 5 per unit Fixed Expenses P 50,000 Assume each questions as independent assumptions: 10. Contribution margin at P100,000 profit 11. Contribution margin at (P50,000) loss 12. Units sold when there is P100,000 profit 13. Units sold when there is (P50,000) loss 14. Fixed costs and expenses at P100,000 profit 15. Fixed costs and expenses at (P50,000) loss
Reuben's Dell currently makes rolls for dell sandwiches it produces. It uses 33,000 rolls annually in the production of dell sandwiches. The costs to make the rolls are: Materials $0.24 per roll 0.39 per roll 0.16 per roll 0.20 per roll Labor Variable overhead Fixed overhead A potential supplier has offered to sell Reuben the rolls for $0.89 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect Reuben would see a s In profit if he buys the rolls. profit be?
b) Almond Delites manufactures various types of biscuits. FMF Biscuits Ltd has approached wwwwwww Almond Delites with a proposal to sell the company its top-selling biscuit at a price of $22 000 for 20 000 units. The costs shown are associated with the production of 20 000 units of almond biscuits: Direct materials Direct labour Manufacturing overhead Total cost $12,000 $5,000 $ 8,000 $25,000 The manufacturing overhead consists of $2 000 of variable costs, with the balance being allocated to fixed costs. Assume that 40% of the fixed costs would be avoidable if the almond biscuits were purchased externally rather than produced internally. Required: i) Should Almond Delites make or buy the almond biscuit? ANSWER b (i): ii) What qualitative factors should Almond Delites consider before making its decision? ANSWER b (ii):
Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $22,000 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Direct material $13,000 Direct labor 5,000 7,000 Manufacturing overhead Total $25,000 The manufacturing overhead consists of $2,000 of variable costs with the balance being allocated to fixed costs. PLEASE NOTE: Costs per unit are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). 1. What is Almond Treats' relevant cost? 2. What does Acme's offer cost? 3. If Almond Treats accepts the offer, what will the effect on profit be? o Incremental dollar amount = . Increase or Decrease? Please note: Your answer is either "Increase" or "Decrease" - capital…
6. Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $22,000 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Direct material $13,000 Direct labor 5,000 Manufacturing overhead 7,000 Total 25,000 The manufacturing overhead consists of $2,000 of variable costs with the balance being allocated to fixed costs. PLEASE NOTE: Costs per unit are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). What is Almond Treats' relevant cost? What does Acme's offer cost? If Almond Treats accepts the offer, what will the effect on profit be? Incremental dollar amount = . Increase or Decrease? .…
Beach Blanket Bonanza Corporation sells its popular mid-century beach towel for $18 per unit, and the standard cost card for the product shows the following costs: Direct material $1 Direct labor 2 Overhead (80% fixed) 7 Total $10 Beach Blanket Bonanza Corporation received a special order for 1,000 units of the beach towel. The only additional cost to Beach Blanket Bonanza would be foreign import taxes of $1 per unit. If Beach Blanket Bonanza is able to sell all of the current production domestically, what would be the minimum sales price that Beach Blanket Bonanza would consider for this special order? Group of answer choices $11.00 $19.00 $5.40 $18.00
a) Almond Delites manufactures various types of biscuits. FMF Biscuits Ltd has approached Almond Delites with a proposal to sell the company its top-selling biscuit at a price of $22 000 for 20 000 units. The costs shown are associated with the production of 20 000 units of almond biscuits: Direct materials: $12,000 Direct labor: $5,000 Variable overhead: $8,000 Fixed overhead: $25,000 The manufacturing overhead consists of $2 000 of variable costs, with the balance being allocated to fixed costs. Assume that 40% of the fixed costs would be avoidable if the almond biscuits were purchased externally rather than produced internally. Required: i)Should Almond Delites make or buy the almond biscuit? ii) What qualitative factors should Almond Delites consider before making its decision?
Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $21,800 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Direct material $13,000 Direct labor 5,100 Manufacturing overhead 7,100 Total $25,200 The manufacturing overhead consists of $2,200 of variable costs with the balance being allocated to fixed costs. A. Calculate the differential cost of Acme? $fill in the blank 1 B. Should Almond Treats make or buy the almond cereal? Make or buy?
Standard Direct Materials Cost per Unit Billingsly Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (7,100 bars) are as follows: Ingredient Quantity Price Cocoa 600 Ibs. $1.25 per Ib. Sugar 120 Ibs. $0.50 per Ib. Milk 180 gal. $2.60 per gal. Determine the standard direct materials cost per bar of chocolate. Round to two decimal places. $ per bar
Rain Incorporated currently manufactures part QX100, which is used in several products produced by the company. Monthly production costs for 10,000 units of QX100 are as follow
Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round.The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lowerlimits of activity for the year ended December 31, 2020.Lower Limit Upper LimitProduction (# of boxes) 4,000 6,000Production Costs:Direct Materials …………………… $60,000 $90,000Direct Labour ………………………. 80,000 120,000Overhead:Indirect Materials…………... 25,000 37,500Indirect Labour ……………. 40,000 50,000Depreciation ………………. 20,000 20,000Selling & Administrative Expenses:Sales Salaries ……………………… 50,000 65,000Office Salaries ……………………… 30,000 30,000Advertising ………………………….. 45,000 45,000Other …………………………………………. __15,000 __20,000Total $365,000 $477,500 Required:a) Classify each cost element as either fixed, variable, or mixed
Stella Co. sells “BJS” at a unit price of P 36,000, with the following unit production costs: Direct materials P 12,000Direct labor 8,000Variable overhead 6,000Fixed overhead 4,000 A special order for 1,000 units was received from Marie, a well-known BJS distributor based in Makati. Additional shipping costs for this sale are P4,000 per unit. REQUIREMENTS: What is the minimum selling price per unit for the special order if: 1. Stella is operating at FULL capacity?2. Stella has EXCESS capacity?