Wildhorse Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 119,900 units. Amount $4,676,100 Sales Cost of goods sold 3,569,024 Selling and administrative expenses 443,437 Net income $663,639 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $248,000. In July, normally a slack manufacturing month, Wildhorse Sports receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Cost of goods sold Selling and administrative expenses Net income $ Reject Order $ Accept Order LA Net Income Increase (Decrease)

Wildhorse Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 119,900 units. Amount $4,676,100 Sales Cost of goods sold 3,569,024 Selling and administrative expenses 443,437 Net income $663,639 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $248,000. In July, normally a slack manufacturing month, Wildhorse Sports receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Cost of goods sold Selling and administrative expenses Net income $ Reject Order $ Accept Order LA Net Income Increase (Decrease)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Amount 4,800,000 Sales 3,600,000 Cost of goods sold Selling and administrative expenses 405,000 795,000 Net income Fixed costs for the period were cost of goods sold 960,000, and selling and administrative expenses 225,000 In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at 28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses. Prepare an incremental analysis for the special order.
SplishBrothers Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,680,000 3,582,000 513,400 $584,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271.000. In July, normally a slack manufacturing month, SplishBrothers Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses.
ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Amount Sales $4,680,000 Cost of goods sold 3,685,200 Selling and administrative expenses 499,200 Net income $495,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $228,000.In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. What is the minimum selling price on the special order to produce net income of $5.05 per ball? (Round answer to 2 decimal places,…
ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Amount Sales $4,680,000 Cost of goods sold 3,685,200 Selling and administrative expenses 499,200 Net income $495,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $228,000.In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all…
Betty DeRose, Inc. manufactures and sells a single product. Information related to the cost of producing this product for the past six months is provided below: Units Produced 5,360 4,840 7,580 4,930 6,110 7,620 Month June July August September October November Total Cost Incurred $126,017 $118,831 $155,833 $119,246 $136,932 $157, 195 Betty DeRose, Inc. expects to produce 6,495 units of this product during December. Using the high-low method, calculate Betty DeRose, Inc's expected total cost incurred for December.
Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (19,200 x $68) $1,305,600 Manufacturing costs (19,200 units): Direct materials 787,200 Direct labor 186,240 Variable factory overhead 86,400 Fixed factory overhead 103,680 Fixed selling and administrative expenses 28,200 Variable selling and administrative expenses 34,100 The company is evaluating a proposal to manufacture 21,600 units instead of 19,200 units, thus creating an ending inventory of 2,400 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. Question Content Area a. 1. Prepare an estimated income statement, comparing operating results if 19,200 and 21,600 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank. Marshall…
Carla Vista Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 118,700 units. Sales Cost of goods sold Selling and administrative expenses Net income Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $235,000. In July, normally a slack manufacturing month, Carla Vista receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses. x Your answer is incorrect. Revenues What is the minimum selling price on the special order to produce net income of $5.00 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ Cost of goods sold…
During the first month of operations ended May 31, Big Sky Creations Company produced 56,250 designer cowboy boots, of which 52,950 were sold. Operating data for the month are summarized as follows: 1 Sales $794,250.00 2 Manufacturing costs: 3 Direct materials $416,250.00 4 Direct labor 135,000.00 5 Variable manufacturing cost 61,875.00 6 Fixed manufacturing cost 56,250.00 669,375.00 7 Selling and administrative expenses: 8 Variable $31,770.00 9 Fixed 26,475.00 58,245.00 During June, Big Sky Creations produced 49,650 designer cowboy boots and sold 52,950 cowboy boots. Operating data for June are summarized as follows: 1 Sales $794,250.00 2 Manufacturing costs: 3 Direct materials $367,410.00 4 Direct labor 119,160.00 5 Variable manufacturing cost 54,615.00 6 Fixed manufacturing…
Calculate and Use Overhead Rate During the comìng accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data Direct material (16,000 lb.) $ 224,000 Direct labor (@ $20.00/hr.) 280,000 Indirect material 33,600 Indirect labor 61,600 Sales commissions 95,200 Factory administration 44,800 Non factory administrative expenses 56,000 Other manufacturing overhead* 134,400 *Provides for operating 70,000 machine hours. a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours; (2) direct labor costs, and (3) machine hours. Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to the nearest one decimal place percentage, when applicable (example: 76.4%). Manufacturing Application base overhead rate Direct labor hours $ Direct labor costs 96 Machine hours b. For each item in requirement a, determine the…
The records for the previous year for Sarasota Boat Builders, Inc., shows the following data: Selling and administrative expenses $300,000 Direct materials used 530,000 Direct labor (100,000 hours) 600,000 Factory overhead application rate $5 per DLH Inventories Ending Beginning $150,000 Work in process $160,000 80,000 50,000 Finished goods The cost of goods sold is $1,630,000 $1.880,000. $1,600,000. $1,650,000