Separate costs were as follows:Personal TrainingApparelLabor$231,000$33,250Supplies151,300700Equipment depreciation165,0001,200Administration103,0003,700For the year, 2,500 bottles of protein drinks were sold.a. What is the total net realizable value of protein drinks used to reduce the joint costassigned to Personal Training and Apparel?b. What is the joint cost to be allocated to Personal Training and Apparel?c. What is the approximated pre-tax realizable value of each main product or servicefor 2010?d. How much joint cost is allocated to each main product or service?e. Determine the net income produced by each main product or service. LO.3 & LO.4 (Process costing; joint cost allocation; by-product) GetAhead pro-vides personal training services for, and sells apparel products to, its clients. GetAheadalso generates a limited amount of revenue from the sale of protein drinks. The net real-izable value from drink sales is accounted for as a reduction in the joint cost assignedto the Personal Training Services and Apparel Products. Protein drinks sell for $2.50per bottle. The costs associated with making and packaging the drinks are $1.00 perbottle.The following information is available for 2010 on apparel products, which arepurchased by GetAhead:Beginning inventory$ 35,000Ending inventory21,500Purchases181,350Joint cost is to be allocated to Personal Training Services and Apparel Productsbased on approximated net realizable values. For 2010, total revenues were $753,000from Personal Training Services and $289,000 from Apparel. The following joint costswere incurred:Rent$36,000Insurance43,750Utilities3,000

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Separate costs were as follows: Personal Training Apparel Labor $231,000 $33,250 Supplies 151,300 700 Equipment depreciation 165,000 1,200 Administration 103,000 3,700 For the year, 2,500 bottles of protein drinks were sold. a. What is the total net realizable value of protein drinks used to reduce the joint cost assigned to Personal Training and Apparel? b. What is the joint cost to be allocated to Personal Training and Apparel? c. What is the approximated pre-tax realizable value of each main product or service for 2010?

Separate costs were as follows: Personal Training Apparel Labor $231,000 $33,250 Supplies 151,300 700 Equipment depreciation 165,000 1,200 Administration 103,000 3,700 For the year, 2,500 bottles of protein drinks were sold. a. What is the total net realizable value of protein drinks used to reduce the joint cost assigned to Personal Training and Apparel? b. What is the joint cost to be allocated to Personal Training and Apparel? c. What is the approximated pre-tax realizable value of each main product or service for 2010?

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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Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $69 32 26 20 Fixed costs: Factory overhead Selling and administrative expenses Voice Com desires a profit equal to a 15% return on invested assets of $600,500. $147 > a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. 90,075 $199,200 68,900 b. Determine the product cost per unit for the production of 4,950 cell phones. Round your answer to the nearest whole dollar. -158 X per unit Total Cost c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. -66 X % Markup Selling price d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. per unit per unit per unit
1 Lazy Days Inc. (LDI), sells hammocks. Revenue and cost information is given below: Sales Price 3. TL 30 Unit Variable Cost 20 Annual Fixed Operating Expenses 47,500 Required: a) Determine the sales volume in units and TL amount that would be required to attain a TL 12,500 profit. Verify your answer by preparing an income statement using the contribution margin format. b) LDI is considering the implementation of a quality improvement program. The program will require a TL 2.50 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional TL 5,000 for advertising. Assuming that the improvement program will increase sales to a level that is 1,500 units above the amount computed in requirement a, should LDI proceed with plans to improve product quality? Support your answer by preparing a budgeted income statement. c) Determine the new break-even point volume of units and sales in TL as well as the margin of safety…
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Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $ 12,00 $ 2.80 $ 129,000 Product Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Greengrow $.33.00 $12.00 $ 41,000 Last year the company produced and sold 41,000 units of Weedban and 22.500 units of Greengrow. Its annual common fixed expenses are $100,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company $ 5,289,500 $4,502,000 $ 607,500 3,270,000 143,500 270,000 2,019,500 4,448,500 427,500 2,019,500 $4,448,500 $ 427,500 $ 2,019,500
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Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $640. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) Bikes Produced and Sold 730 Units 790 Units 1,944 Units Total costs Variable costs $ 189,800 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 549.00 Required 1 Required 2 Required 3 Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data…
Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $630. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) Bikes Produced and Sold 730 Units 810 Units 1,402 Units Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit S 189,800 S S 189,800 $ 0.00 $ 0 S 536.00 S Required 1 0 0.00 Required 2 >
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Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,480 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit 161 34 24 19 $138 Fixed costs: Factory overhead Selling and administrative expenses Voice Com desires a profit equal to a 14% return on invested assets of $600,700. a. Determine the amount of desired profit from the production and sale of 5,400 cell phones. 84,098 ✔ $201,600 71,600 b. Determine the product cost per unit for the production of 5,480 cell phones. Round your answer to the nearest whole dollar. 156 ✔ per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. X%