WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:Units producedPer unit sales value at split-offAdded processing costs per unitPer unit sales value if processed furtherProduct X2,200$ 20.00$ 5.00Product Y2,700$ 26.00$ 7.00Product Z3,700$ 22.00$ 7.00$ 28.00$ 28.00$ 33.00The cost of the joint raw material input is $75,000. Which of the products should be processed beyond the split-off point?Product XyesProduct YyesProduct ZA)noB)yesnoyesC)noyesnoD)noyesyesMultiple ChoiceоChoice BОChoice CChoice DОChoice A

Joint Production and Split-Off Point:In manufacturing processes, joint production occurs when a…

Answered: WP Corporation produces products X, Y,…

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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Robin has the following budgeted data for the forthcoming month: Products Sparrow Thrush Magpie 000s 000s 000s Sales and production (units) 50 40 30 £ £ £ Selling price (per unit) 45 95 73 Direct material and labour 32 84 65 Hours Hours Hours Machining (machine hours) 2 5 4 Assembly (direct labour hours per unit) 7 3 2 Overheads allocated and apportioned to production departments are normally recovered in product costs at £1.20/machine hour in the machining department and £0.825/direct labour hour in the assembly department. You ascertain that the above overheads could be reanalysed as follows: £000s Cost driver Quantity in month Machine services Assembly services Set-up costs Order processing Purchasing 357 318 26 156 84 941 Machine hours Direct labour hours Set-ups Customer orders Supplier orders 520 32,000…
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further Product X 2,500 $ 23.00 $ 2.00 Product Y 3,000 $ 24.00 $ 4.00 Product Z 4,000 $ 25.00 $ 4.00 $ 27.00 $ 27.00 $ 32.00 The cost of the joint raw material input is $92,000. Which of the products should be processed beyond the split-off point? Product Y ABCD A) Product X yes Product Z yes no B) yes no yes c) no yes no D) no yes yes
Nn.18. Subject :- Account
Lean Accounting The annual budgeted conversion costs for a lean cell are $70,500 for 1,500 production hours. Each unit produced by the cell requires 18 minutes of cell process time.. During the month, 1,050 units are manufactured in the cell. The estimated materials costs are $52 per unit. (Round the per unit cost to the nearest cent and use in subsequent computations. If required, round your answers to the nearest dollar.) Journalize the following entries for the month: a. Materials are purchased to produce 1,110 units. b. Conversion costs are applied to 1,050 units of production. c. The cell completes 1,000 units, which are placed into finished goods. If an amount box does not require an entry, leave it blank. a. b.
The following data are given for Zoyza Company: Line Item Description Value Budgeted production (at 100% of normal capacity) 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22.00 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. The fixed factory overhead volume variance is a. $73,250 favorable b. $59,400 favorable c. $59,400 unfavorable
A company has the following budgeted and actual cost data for manufacturing 2,000 Product X units: Direct materials $50 per unit Direct labor $40 per unit Variable manufacturing overhead $ 5 $40,000 per year per unit Fixed manufacturing Overhead Product X sells for $200 per unit. Assume no beginning or ending inventories. The Gross Profit for selling 15 Product X units is %24
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 qis the number of labor-hours worked in a month: Cost Formulas $16.60g $4, 200 + $1.60g $5,300 + $0.70g $1,700 + $0.30g $18,500 $2.90g $8, 300 $2,500 $13,100 + $0.80g Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory adeinistration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Equipnent depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 66,380 $ 9,940 $ 8,560 $ 3,140 $ 29,810 $ 8,700 $2,500 $ 15,610 Required: 1. Prepare the Production…
Given the following information, determine the activity rate (rounded to the nearest cent) for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 11,000 $58,100 Inspections 25,200 $147,200 Assembly (dlh) 72,000 $375,700 a. $5.22 O b. $5.28 c. $5.84 O d. $5.37
Tannian Ltd has produced the following budgeted figures for a new product which it hopes to launch: Direct material N$10 per unit Direct labour N$5 per unit Variable production overhead N$8 per unit Fixed production overhead N$27 000 per month Budgeted output 9000 units per month Selling price N$30 per unit The following levels of activity took place over the first two months of the products life: Month 1 Month 2 Production units 9000 10 000 Sales units 8500 9500 Note: Actual prices and costs were the same as budgeted for the first two months. Required: (a) Calculate the standard cost per unit and standard profit per unit under absorption costing principles. (b) Prepare a profit statement for each month ( separately) on each of the following basis: i. Absorption costing ii. Marginal costing (c) Prepare a reconciliation of the difference in profit reported in the profit statements prepared in part (b) above.
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 Cost Formulas $16.60q $4,300 +$1.60q $5,700 +$0.40q Supplies $1,200 + $0.20q Equipment depreciation Factory rent $18,600 + $2.80q $8,400 $2,500 Property taxes Factory administration $13,100 +$0.50q The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $ 73,020 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 10,680 $ 7,890 $ 2,310 $ 30,640 $ 8,800 $ 2,500 $ 14,580 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production…
Budgeted information relating to two departments in Blair's Chairs Limited for the next period is as follows: Production Department overhead 1 2 £ 270,000 18,000 Direct material cost £ Direct Direct Machine labour cost labour hours hours £ 67,500 13,500 36,000 100,000 2,700 45,000 25,000 300 Individual direct labour workers within each department earn differing rates of pay according to their skills, grade and experience. What is the most appropriate production overhead absorption method for Department 1? A) $ per machine hour B) $ per direct labour hour C) Per cent of direct material cost D) Per cent of direct labour cost What is the most appropriate production overhead absorption method for Department 2? A) Per cent of direct material cost B) $ per machine hour C) Per cent of direct labour cost D) $ per direct labour hour

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