Lazaro Company produces "Excellent". To produce Excellent, Lazaro will require 15 units of Material X at P8 per unit, 10 units of Material Y at P7 per unit, 2 direct labor hours at P50 per hour, and variable factory overhead P100 per unit and annual fixed factory overhead P1,000,000. If only 460,000 units were sold out of production 500,000 units of Excellent using full absorption costing method, what is the value of ending inventory? P 7,600,000 O P15,600,000 O P15,680,000 None of the above

Lazaro Company produces "Excellent". To produce Excellent, Lazaro will require 15 units of Material X at P8 per unit, 10 units of Material Y at P7 per unit, 2 direct labor hours at P50 per hour, and variable factory overhead P100 per unit and annual fixed factory overhead P1,000,000. If only 460,000 units were sold out of production 500,000 units of Excellent using full absorption costing method, what is the value of ending inventory? P 7,600,000 O P15,600,000 O P15,680,000 None of the above

Name: Lazaro Company produces"Excellent". To produceExcellent, Lazaro will
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Description: Lazaro Company produces"Excellent". To produceExcellent, Lazaro will require 15units of Material X at P8 perunit, 10 units of Material Y at P7per unit, 2 direct labor hours atP50 per hour, and variablefactory overhead P100 per unitand annual fixed f

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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Sassy Company uses the product cost concept of applying the cost-plus approach to product pricing (this is the one we learned). Sassy Company desires a profit equal to a 15% rate of return on invested assets of $550,000. The costs and expenses of producing 35,000 units of Product H are as follows: (NOTE: This is the same fact pattern as the previous two questions) Fixed factory overhead cost $35,000 Fixed selling and administrative costs 16,500 Variable direct materials cost per unit 2.60 Variable direct labor cost per unit 4.30 Variable factory overhead cost per unit 1.30 Variable selling and administrative cost per unit 0.75 The markup percentage on total cost for the company's product is: O 23.2% 38.9% O not possible to calculate with the information provided O 29.8%
Stripe Company has been purchasing a component, Part Q, for P19.20 per unit. Stripe is currently operating at 70% of capacity, and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q is estimated as follows: Direct materials P11.50 Direct labor 4.50 Variable factory overhead 1.12 Fixed factory overhead 3.15 Total P20.27 Should the company make or buy the component? Prepare a differential analysis report dated March 12 of the current year to support your answer.
EL Company produces "LOVE". To produce LOVE, EL will require 10 units of Material C at P10 per unit, 10 units of Material D at P6 per unit, 2 direct labor hours at P50 per hour, and variable factory overhead P100 per unit and annual fixed factory overhead P1,000,000. What is the estimated total cost to produce 500,000 units of LOVE using direct costing method? P 80,000,000 P180,000,000 P181,000,000 None of the above
Pilar Company produces "Extraordinary". To produce Extraordinary, Pilar will require 10 units of Material C at P10 per unit, 10 units of Material D at P6 per unit, 2 direct labor hours at P50 per hour, and variable factory overhead P100 per unit and annual fixed factory overhead P1,000,000. What is the estimated total cost to produce 500,000 units of Extraordinary using direct costing method? * P 80,000,000 O P180,000,000 O P181,000,000 O None of the above
Two separate processes are being considered for manufacturing a product. Process A has fixed costs of $12,000 and variable costs of $6 per unit. Process B has fixed costs of $16,000 and variable costs of $4 per unit. a. What is the break-even quantity for the two processes (Show your work)? b. Which process would be more cost-effective for producing 1,000 units? c. Which process would be more cost-effective for producing 3,000 units?
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A company’s productive capacity is limited to 480,000 machine hours. Product X requires 10 machine hours to produce; Product Y requires 2 machine hours to produce. Product X sells for $32 per unit and has variable costs of $12 per unit; Product Y sells for $24 per unit and has variable costs of $10 per unit. Assuming that the company can sell as many of either product as it produces, it should a. Produce X and Y in the ratio of 57% X and 43% Y. b. Produce X and Y in the ratio of 83% X and 17% Y. c. Produce equal amounts of Product X and Product Y. d. Produce only Product X. e. Produce only Product Y.
Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited production capacity. Machine hours per unit for Standard is 4 hour and for Premier is 6.0 hours. The company has 226,800 machine hours available. Contribution margin per unit is $24 for Standard and $30 for Premier. What is the total contribution margin if Logan chooses the most profitable sales mix? Multiple Choice $1,760,000. $1,360,800. $1,910,000.$2,310,000. $1,300,000. Please don't give solution in image
Lakeside Incorporated produces a product that currently sells for $46.80 per unit. Current production costs per unit include direct materials, $13; direct labor, $15; varlable overhead, $6.50; and fixed overhead, $6.50. Product engineering has determined that a certain part of the product conversion process could be outsourced. Raw material costs would not be affected, but direct labor and variable overhead costs would be reduced by 30%. No other opportunity is currently feasible for unused production capacity. Required: a. What would be the net cost advantage or disadvantage if Lakeview decided to outsource part of the conversion process at a cost of $5.20 per unit? Note: Do not round your Intermediate calculations. Round your final answer to 2 decimal places. b. Should Lakeside outsource part of the conversion process at a cost of $5.20 per unit? a. b. Should Lakeside outsource conversion process at this cost?
Snipe Company has been purchasing a component, Part Q, for $19.20 a unit. Snipe is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q, determined by absorption costing methods, is estimated as follows: Direct materials $11.50 Direct labor $4.50 Variable factory overhead $1.12 Fixed factory overhead $3.15 Total $20.27 Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q.
Jaybird Company operates in a highly competitive market where the market price for its product is $145 per unit. Jaybird desires a 30% profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials S 24 Overhead $ 45,000 Direct labor 25 General and administrative 18,000 Overhead 23 General and administrative 29 To achieve the target cost per unit, Jaybird must reduce total expenses by how much? Multiple Choice $ 62,000 $51,000 $70, 500 $67,500 $60, 500