Problem 515gbirdIZZY Manufacturing Company has one product line - Product WZ. This year, the companysold 40,000 units at P40 per unit. Next year, the business expects to increase its sales volumeby 10%. There are no beginning and ending finished goods inventories.In the manufacture of one unit of Product WZ, HYZEL uses three types of direct rawmaterial as follows:8.1 WORKIRaw material AARaw material BBRaw material CC2 units at P4.00 per unit2 units at P5.00 per unit3 units at P7.00 per unitThere are no beginning and ending raw materials inventories.blity tofoencialRequired: Determine the raw materials requirements to produce the total units plannedto be sold the following year.discusspurposesconcepa

Raw material requirement = Number of units of raw material required per unit*Cost per unit * Number…

Answered: Problem 5 IZZY Manufacturing Company…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question 2 Capstone Company has two divisions. The Bottle Division produces products that have variable costs of $3 per unit. It has annual production of 200,000 units. 160,000 units of the products are sold to outsiders at $5 per unit and 40,000 units to the Mixing Division. The fixed costs of the Bottle Division are $125,000 per year. There was no beginning or ending inventories during the year. Mixing sells its finished products to outside customers for $11.50 per unit. Mixing has variable costs of $2.50 per unit in addition to the costs from the Bottle Division. The annual fixed costs of Mixing were $85,000. There was no beginning or ending inventories during the year. Required: a) How much should be the minimum transfer price: (i) if market for the products from Bottle Division is perfectly competitive? (ii) if intermediate market exists that is not perfectly competitive, and the Bottle Division has no unused capacity?
Question 3 Bonika Sdn Bhd (BSB) manufactures small camping tents. BSB produced 3,000 units during the year. These camping tents sell for RM150 each. BSB had 500 units in finished goods inventory at the beginning of the year.At the end of the year.there were 800 units in finished goods inventory. The following information was supplied by its accountant: RM 10,500 15,000 Direct labour cost Purchases of raw materials Depreciation of machinery Insurance expenses 1,000 4,500 2,000 Factory rent Factory supervision Utilities expenses Indirect labour cost 3,000 2,500 3,500 15,000 12,000 Administration salaries Sales Commission Advertising Materials inventory, May 1 Work in process inventory, May 1 Finished goods inventory, May 1 Materials inventory, May 31 Work in process inventory, May 31 Finished goods inventory, May 31 20,000 6,000 12,000 2,100 8,000 7,000 800 Additional information: Only 70% of the utilities expense and 80% of the insurance expense apply to factory operations. The…
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense
Question 6 Oriole Company is planning to sell 1100 boxes f ceramic tile, with production estimated at 970 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.75 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $19 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Oriole has 3100 pounds of clay mix in beginning inventory and wants to have 5000 pounds in ending inventory. What is the total amount to be budgeted in pounds for direct materials to be purchased for the month? O40780 O 44580 O50300 O 42680
Item 3 Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 6 microns per toy at $0.32 per micron Direct labor: 1.3 hours per toy at $6.70 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows: Direct materials: 73,000 microns were purchased at a cost of $0.30 per micron. 32,500 of these microns were still in inventory at the end of the month. Direct labor: 7,420 direct labor-hours were worked at a cost of $52,682. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price…
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Question 5.1 Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month. Selling price Units in beginning inventory $105 110 Units produced 6,400 Units sold 6,100 Units in ending inventory Variable costs per unit: 410 Direct materials $62 Direct labour $48 Variable manufacturing overhead Variable selling and administrative Fixed costs: $3 $7 Fixed manufacturing overhead Fixed selling and administrative $64,000 $35,600 Submission Instructions: 1. Under variable costing, identify the unit product cost for the month. 2. What is the unit product cost for the month under absorption costing? 3. Prepare an income statement for the month using the contribution format and the variable costing method. 4. Prepare an income statement for the month using the absorption costing method.
11 Part 2 of 2 ! Required information [The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. Sales price per unit Units produced this year $ 335 per unit 119,000 units 119,000 units Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor 4 Variable overhead Fixed overhead $15 per unit $ 4,615,000 per year $ 43 per unit $65 per unit $ 31 per unit $ 7,378,000 per year 2. Prepare the current-year income statement using absorption costing. 11 PREN
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