Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Other costs: Number of bikes assembled Coaster 765 Traveler Total 465 1,230 Materials cost per bike $ 634 $ 1,255 Direct labor $ 303,000 392,000 254,000 344,000 Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Material cost Operation cost Total cost Unit cost Coaster Traveler $ EA EA $ Total 0 0

Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Other costs: Number of bikes assembled Coaster 765 Traveler Total 465 1,230 Materials cost per bike $ 634 $ 1,255 Direct labor $ 303,000 392,000 254,000 344,000 Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Material cost Operation cost Total cost Unit cost Coaster Traveler $ EA EA $ Total 0 0

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

Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the parts for its engines, including the carburetors. An outside supplier offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $30 per unit. To evaluate this offer, Troy Engines, Limited, summarized the cost of producing the carburetor internally as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per Unit $ 12 8 2 9* Required 1 Required 2 Required 3 Required 4 12 $43 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. If the company has no alternative use for the facilities being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted?…
Harbortown Marine Products (HMP) manufactures and sells various fixtures for boat cabins. One fixture uses a specialized fitting that is not used in any other HMP product. The management of HMP has considered outsourcing the fitting for several years but has never identified a suitable supplier. HMP has collected the following data on the cost of the fitting: Materials $ 6.45 Labor 4.85 Manufacturing overhead 14.45 Total $ 25.75 Rivard Fittings, a local auto supplier, contacts HMP and tells them that because of the loss of one of Rivard's customers, there is enough capacity to produce up to 5,000 units of the fitting monthly. Rivard has offered to sell HMP any quantity (up to 5,000 units monthly) at a price of $20.15 per fitting. If Rivard supplies all of the 3,020 fittings currently produced by HMP, HMP will avoid all of the variable overhead associated with the fitting and one-third of the fixed overhead. Management estimates that variable overhead for the fitting is…
SixthZ currently produces and sells 1,200 treehouses per year and sells them at $1200 per treehouse. SixthZ has the capacity to produce 1,400 treehouses. SixthZ has received a special order from the families in Davis's Village Homes community. They would like to buy 135 treehouses at a price of $800 per treehouse. The product unit cost for the treehouses is shown below: Direct Materials $500 Direct Labor $300 Variable Overhead $40 Fixed Overhead $100 SixthZ incurs no variable selling and administrative expenses. Should SixthZ accept the special order? O No, because accepting the order would result in a $113,400 decrease in operating income O No, because accepting the order would result in a $18,900 decrease in operating income O Yes, because accepting the order would result in a $54,000 increase in operating income O No, because accepting the order would result in a $5,400 decrease in operating income
Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat—Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are Sport Collegiate Price per unit $ 285 $ 470 Variable cost per unit $ 108 $ 188 Machine minutes per unit 6 15 The one machine that is used to produce both models has a capacity of 35,100 machine-minutes per quarter. Fixed manufacturing costs per quarter are $445,000. Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter? b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter?
Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts: Direct Labor- Hours per unit 0.40 0.60 Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $18 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Annual Production 26,000 units 88,000 units Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours. Estimated Overhead Cost $28,160 $ 164,560 $ 780,000 Estimated Activity Rims 110 2,000 10,400 Posts 90 0 52,800 Total 200 2,000 63,200 2. Determine the unit product cost of each product…
Scorpio makes premium bikes using two departments, assembly and painting. Assembly estimates using 868,000 machine hours and painting uses 41,000 machine hours. Fixed manufacturing overhead costs are estimated to be $10,000,000 for assembly and $751,000 for painting. Variable manufacturing overhead per machine hour is $11.5 in both departments. Machine hours are used as the allocation base for a plantwide predetermined manufacturing overhead application rate. A bike dealership shop places an order for 20 bikes. The order requires 1,030 machine hours in assembly and 105 machine hours in painting. The job also requires $54,000 of direct materials and $108,000 of direct labor. What is the unit product cost (per bike) for the job when Scorpio uses a plantwide approach to calculating its predetermined manufacturing overhead application rate? Round your answer to 2 d.p. Do not round intermediary calculations.
Give me correct answer with explanation..
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Operation cost Materials cost Total cost Unit cost Coaster 750 $626 Coaster Traveler 450 $ 1,202 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Total 1,200 Traveler $ 299,400 382,400 247,400 340,400 Total
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Number of units assembled Materials cost per unit Other costs: Direct labor Indirect materials Other overhead Operation cost Materials cost Total cost Number of units Unit cost Fatboy 1,050 $ 2,400 $3,400 Fatboy Screamer 2,100 Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August. Screamer Total Total 3,150 $3,591,000 598,500 1,795,500
Required information [The following information applies to the questions displayed below.] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,600 units, and monthly production costs for the production of 1,300 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($110 fixed) Supervisor's salary Maintenance ($270 fixed) Depreciation Total Cost $ 2,500 8,100 650 3,000 510 750 Suppose it sells each birdbath for $24. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,500 units.
Please Do not Give Image format
Vermont Instruments manufactures two models of calculators. The fiancé model is the Fin-X and the scientific model is the Sc-X. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is in the cost of the parts. The following data are available for June: Fin-X Sci-X Total Number of units 12,000 40,000 52,000 Parts cost per unit $25 $23 Other costs: Direct labor $53,000 Indirect materials 18,000 Overhead…