Nevis Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company's cost accountant has assembled the following information. Units 160,000 20,000 32,000 ? Dollars Sales (budgeted) Finished goods inventory, January 1 (actual) Finished goods inventory, March 31 (budgeted) Cost of finished goods manufactured (budgeted manufacturing costs are $30 per unit) $6,400,000 500,000 ? ? The company uses the first-in, first-out method to report its inventory of finished goods. Required: a. Compute the planned production of finished goods (in units). b. Compute the cost of finished goods manufactured. c. Compute the finished goods inventory, March 31. d. Compute the cost of goods sold. Planned production of finished goods 160,000 units а. b. Cost of finished goods manufactured Ending finished goods inventory $ 32,000 c. d. Cost of goods sold

Nevis Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company's cost accountant has assembled the following information. Units 160,000 20,000 32,000 ? Dollars Sales (budgeted) Finished goods inventory, January 1 (actual) Finished goods inventory, March 31 (budgeted) Cost of finished goods manufactured (budgeted manufacturing costs are $30 per unit) $6,400,000 500,000 ? ? The company uses the first-in, first-out method to report its inventory of finished goods. Required: a. Compute the planned production of finished goods (in units). b. Compute the cost of finished goods manufactured. c. Compute the finished goods inventory, March 31. d. Compute the cost of goods sold. Planned production of finished goods 160,000 units а. b. Cost of finished goods manufactured Ending finished goods inventory $ 32,000 c. d. Cost of goods sold

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

Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,200 machine-hours Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Depreciation Total overhead cost Multiple Choice The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,100 machine-hours rather than 2,200 machine-hours? (Round your intermediate calculations to 2 decimal places.) O $54,560 $53,330 $52,770 $ 9,240 17,820 $52,080 15,300 5,600 6,600 $ 54,560
Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element Variable element per month per unit Revenue $ 0 $ 0 $ 27.80 $ 3.10 Direct labor Direct materials 10.20 Manufacturing overhead 37,200 1.10 Selling and administrative expenses 22,800 0.30 Total expenses $ 60,000 $ 14.70 Actual results for June: Revenue $ 178,318 $ 18,606 $ 60,652 $ 43,896 $ 24,688 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The activity variance for net operating income in June would be closest to:
For 20Y6, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y6, the following unit sales data were reported for the year: Unit Sales 8" x 10" 12" x 16" Frame Frame East 24,440 14,910 Central 6,222 4,018 West 5,432 3,060 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 Unit Unit Sales Selling Product and Area Volume Price Total Sales 8" x 10" Frame: East 23,500 $24 $564,000 Central 6,100 24 146,400 West 5,600 24 134,400 Total 35,200 $844,800 12" x 16" Frame: East 14,200 $34 $482,800 Central 4,100 34 139,400 West 3,000 34 102,000 Total 21,300 $724,200 Total revenue from sales $1,569,000
Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,900 units, but its actual level of activity was 5,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element per month Variable element per unit Revenue $ 0 $ 29.30 Direct labor $ 0 $ 3.90 Direct materials 0 10.00 Manufacturing overhead 39,000 1.20 Selling and administrative expenses 24,600 0.40 Total expenses $ 63,600 $ 15.50 Actual results for June: Revenue $ 176,358 Direct labor $ 22,310 Direct materials $ 56,330 Manufacturing overhead $ 45,917 Selling and administrative expenses $ 26,989 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget…
Prepare the following budgets for the months of April, May, and June: 1. Sales budget. 2. Production budget.3. Direct materials budget. The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGBY MANUFACTURING Balance Sheet March 31 Assets Liabilities and Equity Cash $ 65,000 Liabilities Accounts receivable 399,000 Accounts payable $ 204,500 Raw materials inventory 90,200 Loan payable 27,000 Finished goods inventory 308,028 Long-term note payable 500,000 $ 731,500 Equipment $ 630,000 Equity Less: Accumulated depreciation 165,000 465,000 Common stock 350,000 Retained earnings 245,728 595,728 Total assets $ 1,327,228 Total liabilities and equity $ 1,327,228 To prepare a master budget for April, May, and June, management gathers the following information. Sales for March total 22,800 units. Budgeted sales in units follow: April, 22,800; May, 16,000; June, 23,000; and July, 22,800.…
Swifty Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Swifty is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (a) (1) One mobile safe $ (2) Your answer is correct. (b1) eTextbook and Media (a) One walk-in safe (b) The total estimated manufacturing overhead was $260,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) One mobile safe $ One walk-in safe Mobile Safes Walk-in Safes $ 200 $ 300 450 800 416 50 3,536 200 The total estimated manufacturing overhead of $260,000 was…
Earle Soup Company makes three varieties of soups: Bean, Tomato, and Vegetable. Sales volume for the annual budget is determined by estimating the total market volume for soups and then applying the company's prior year market share, adjusted for planned changes due to company programs for the coming year. Volume is apportioned among the three varieties of soup based on the prior year's product mix, again adjusted for planned changes for the coming year. The following are the company budget and the results of operations for the most recent quarter. Budget (all units and costs in thousands) Sales-units Sales-dollars Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit Actual fall units and costs in thousands) Sales-units Sales-dollars Variable costs Contribution margin: Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit $ 1,200 840 $360 240 $ 120…
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Direct labor Indirect labor Utilities Supplies Equipment depreciation Cost Formulas The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below: Factory rent Property taxes Factory administration $16.509 $4,400 $2.00q $5,000 + $0.50q $1,300+ $0.109 $18,500 + $2.60q $8,200 $2,400 $13,500+ $0.50q Actual Cost Incurred in March $ 69,270 $ 12,180 $ 7,540 $ 1,940 $ 29,160 $ 8,600 $ 2,400 $ 14,880 Required: 1. Prepare the Production…
Solomon Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Solomon expects to incur $640,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 4,600 6,600 4,800 16,000 Machine hours 1,200 2,300 2,900 6,400 Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.
Consider Derek's budget information: materials to be used totals $63,300; direct labor totals $202,000; factory overhead totals $393,900; work in process inventory January 1, $187,200; and work in progress inventory on December 31, $193,400. What is the budgeted cost of goods manufactured for the year?
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Direct labor Indirect labor Utilities Supplies Equipment depreciation Cost Formulas $16.309 $4,200+ $1.809 $5,800+ $0.909 $1,800+ $0.109 The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Factory rent Property taxes Factory administration $18,600 + $2.609 $8,100 $2,800 $13,300 + $0.709 Actual Cost Incurred in March $ 66,780 $ 10,940 $ 9,970 $ 2,430 $ 29,000 $ 8,500 $ 2,800 $ 15,470 Required: 1. Prepare the Production Department's planning budget for the month.
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,400 units, but its actual level of activity was 6,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue $ 0 $ 33.90 Direct labor $ 0 $ 5.90 Direct materials 0 13.50 Manufacturing overhead 34,000 1.40 Selling and administrative expenses 25,200 0.60 Total expenses $ 59,200 $ 21.40 Actual results for May: Revenue $ 216,300 Direct labor $ 36,930 Direct materials $ 86,900 Manufacturing overhead $ 42,000 Selling and administrative expenses $ 30,440 The revenue variance for May would be closest to: