XYZ Manufacturing purchases trees from ABC company and pro split off point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of November: Joint Costs Joint Costs (The cost of purchasing 100 trees $3,000 and processing them up to the split off point Paper Pencil Casings Beginning inventory Production 60,000 60,000 Sales 58,000 60,000 2,000 Ending inventory Selling price $0.04 $0.10 ril casings?

XYZ Manufacturing purchases trees from ABC company and pro split off point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of November: Joint Costs Joint Costs (The cost of purchasing 100 trees $3,000 and processing them up to the split off point Paper Pencil Casings Beginning inventory Production 60,000 60,000 Sales 58,000 60,000 2,000 Ending inventory Selling price $0.04 $0.10 ril casings?

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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The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February: Direct materials processed: 800,000 gallons (778,500 gallons of good product) Production: Cream 443,500 gallons Liquid skim 335,000 gallons Sales: Cream 424,500 at $13 per gallon Liquid skim 324,000 at $12 per gallon The cost of purchasing 800,000 gallons of direct materials and processing it up to the split-off point to yield a total of 778,500 gallons of good product was $2,350,000. The Alfarm Corporation uses sales value at split off point method of allocating joint costs. What is the value of ending inventory for liquid skim? If you…
Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Activity Purchasing Warehousing Distributing Cost Driver Number of purchase orders Number of moves Number of shipments. Quantity of Cost Driver 1,040 8,400 540 Maximum cost Cost per Unit of Cost Driver $154 per order 34 per move 84 per shipment Caldwell buys 100,400 units at an average unit cost of $14 and sells them at an average unit price of $24. The firm also has fixed operating costs of $250,400 for the year. Caldwell's customers are demanding a 14% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 8% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 720 and can decrease the cost of each shipment by…
Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: January 40,000 February 50,000 March 60,000 April 60,000 May 62,000 The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: Finished goods inventory on January 1 is 32,000 units, each costing $166.06. The desired ending inventory for each month is 80% of the next month's sales. The data on materials used are as follows: Direct Material Per-Unit Usage DM Unit Cost ($) Metal 10 lbs. 8 Components 6 5 Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is exactly the amount of material on hand on December 31 of the prior year. The direct labor used per unit of…
Petrillo Company produces engine parts for large motors and uses standard costing for its production costing and control. The company provided the following information for the month of November: Standards for direct materials per 7 lbs. at $6 per unit Ibs. Parts produced 2,000 units Direct materials purchased 12,000 lbs. at $5.8 per Beginning inventory of direct Ibs. materials 5,000 lbs. Ending inventory of direct materials 2,000 lbs. What is the direct material guantity (usage) variance? O $6,000 U O $30,000 F O $3,000 U O $12,000 F
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,600 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 961 per month Sales salaries and commissions $ 4,799 per month, plus 4% of sales Delivery of pianos to customers $ 60 per piano sold Utilities $ 647 per month Depreciation of sales facilities $ 4,956 per month Administrative: Executive salaries $ 13,422 per month Insurance $ 702 per month Clerical $ 2,456 per month, plus $37 per piano sold Depreciation of office equipment $ 879 per month During August, Marwick’s Pianos, Inc., sold and delivered 56 pianos. Required: 1. Prepare a traditional format income statement for August.
Toys R Us manufactures customized dolls. The following are the transactions for the month of May: Purchased $10,000,000 of raw materials on account. Paid for payroll P12,000,000: indirect labor $200,000 and direct labor $5,000,000 60% of which went to Job 11 Customer Toy Kingdom and the balance to Job 12 Customer Toy World. Other payroll distribution was for selling and administrative. Out of the purchases, 80% were requisitioned: half went to Job 11, $55,000 to indirect materials and the balance to Job 12. Other factory overhead incurred amounted to $1,350,000. Applied overhead is 40% of direct labor. Job 11 was finished. Compute for the work in process charged to the jobs. Compute for the cost of the job charged out of work in process. Compute for the over or under applied factory overhead and make the entry.
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 280 trees Production: paper 160,000 sheets pencil casings 160,000 Sales: paper 147,000 at $0.10 per page pencil casings 158,500 at $0.13 per casing The cost of purchasing 280 trees and processing them up to the split-off point to yield 160,000 sheets of paper and 160,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point for paper?
Accounting Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a different form after further processing. The candies are produced in a joint processing operation with $590,000 of joint processing costs monthly, which are allocated based on pounds produced. Information concerning this process for a recent month appears below: Candy type Sweet Meats Chocolate Delight Minty Wonders Number of pounds 59,000 109,000 34,000 Price per pound at split-off $8 $10 $5 If Chocolate Delight is processed further, the gross profit margin that will appear in a product line income statement for Chocolate Delight would be: Note: Do not round intermediate calculations. Multiple Choice $1,127,300. $808,934. $697,974. $619,000. Further processing costs $ 84,000 $ 39,000 $ 29,000 Price after processing further $ 10.00 $ 10.70 $ 5.50
STI Industries manufactures two types of industrial staplers, small and regular. During October,STI purchased direct materials to produce its staplers. The quantity purchased equaled thequantity used. Related information for direct materials is as follows: Small RegularDirect materials Stapler StaplerStandard ounces per unit 12 cStandard price per ounce $2.00 $2.50Actual quantity purchased (used) per unit a 16.75Actual price per ounce $2.50 $2.80Materials price variance $1,000 U $2,010 U Materials usage variance $800 F…
The Green Company processes unprocessed goat milk up to the split- off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: | Direct materials processed: 100,500 gallons (after shrinkage) 44,500 gallons Production: Condensed goat milk Skim goat milk 56,000 gallons $4.25 per gallon $3.50 per gallon Sales: Condensed goat milk Skim goat milk The costs of purchasing the of unprocessed goat milk and processing it up to the split - off point to yield a total of 100,500 gallons of saleable product was $186.480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 44,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $6 per usable gallon. Xyla can be sold for $21 per gallon. Skim goat milk can be processed further to yield 54,700 gallons of skim goat milk ice cream. for an additional processing…
1
Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: Budget Actual 7,600 hours 6,100 hours Direct labor hours Machine hours 7,200 hours 6,300 hours Depreciation on salespeople's autos $23,000 $23,000 Indirect materials $48,500 $50,500 Depreciation on trucks used to deliver uniforms to customers solla $13,000 $70,000 $40,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $72,500 $42,000 Customer service hotline $19,000 $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements 1odel tba 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers usA acco

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