SURVEY OF ACCOUNT.(LL)-W/ACCESS>CUSTOM<
5th Edition
ISBN: 9781260222326
Author: Edmonds
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 10, Problem 10E
a.
To determine
Recognize downstream and upstream costs.
b.
To determine
The cost of goods sold and ending inventory cost appears in 2017 financial statement.
c.
To determine
The sales price by assuming the profit margin as 25%.
d.
To determine
Prepare an income statement based on GAPP for 2017.
e.
To determine
Explain the reason for net loss.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
QUESTION 2
Innovating Motors Company makes electric cars and has two products, the iHybrid and the
iBrilliant. To produce the iHybrid, Innovating Motors employed assets of $10,500,000 at the
beginning of 2017 and $14,450,000 of assets at the end of 2017. Other costs to manufacture the
iHybrid include the following:
Direct materials $5,000 per unit
Setup
$1,500 per setup-hour
$ 415 per machine-hour
Production
General administration and selling costs for iHybrid total $7,820,000 in 2017. During the
year, Innovating Motors produced 11,000 Hybrid cars using 6,000 setup-hours and 139,000
machine-hours. It sold these cars for $12,000 each.
Required:
i. Assuming that Innovating Motors defines investment as average assets during the period,
what is the retun on investment for the iHybrid division?
ii.
Calculate the residual income for iHybrid if Innovating Motors has a required rate of
retum of 16% on investments.
ii. Based on its values and strategic thrusts, Innovating Motors is committed to…
Problem 33-13 (IAA)
Acrophobia Company summarized manufacturing and
construction activities for 2017 as follows:
Finished goods
Machinery
Materials
Direct labor
3,000,000
4,000,000
500,000
1,000,000
Overhead for the prior year was 75% of the direct labor cost.
Overhead in 2017 related to both product manufacture and
construction activities amounted to P3,600,000.
Required:
b. Calculate the cost of the machinery if manufacturing and
construction activities are to be charged with overhead at
the same rate.
The following data are provided for Matibag Corporation:
a. Sales: Sales through June 30, 2019, the first 6 months of the current year, are 24,000
units. Expected sales for the full year are 60,000 units. Actual sales in units for May
and June and estimated unit sales for the next 4 months are as follows:
Direct Materials
101
211
242
b. Direct Materials: At each month end, Villanueva wants to have sufficient materials on
hand to produce the next month's estimated sales. Data regarding materials are as
follows:
c. Direct Labor:
July
August
September
October
May
June
Process
Forming
Assembly
Finishing
4,000
4,000
5,000
6,000
7,000
7,000
Units of Material Cost per Unit
Required
6
4
2
Php 0.40
3.60
1.20
Hours per Unit
80
2.00
0.25
Units in Inventory,
June 30, 2019
Hourly Labor
Rate
P 8.00
5.50
6.00
35,000
32,000
14,000
Chapter 10 Solutions
SURVEY OF ACCOUNT.(LL)-W/ACCESS>CUSTOM<
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Need General Finance Question Solutionarrow_forward10-21 Estimating a cost function using the Account Analysis Approach. Khan Sunil Enterprises, a software engineering firm, uses the account analysis approach to identify the cost behavior of production costs for its premium software. The following details relate to the company's activities for June 2019 in which it produced 350 units. Total Variable Fixed Materials used in production 270,000 Labor costs Production facility costs Total production cost R 10,000 2 4,000 2270,000 2134,000 R130,000 3 3,000 3 17,000 2103,000 100,000 2507,000 3500,000 Required 1. Describe the production cost in the equation form y = a + bx 2. Assume the company intends to produce 400 units next month, calculate the total production costs for the month. 3. Comment on the usefulness of the estimation to management of the company.arrow_forwardPlease fill in the blanksarrow_forward
- Outsourcing decision affected by equipment replacement During 2018, Adaire Toy Company made 10,000 units of Model K, the costs of which follow: Unit-level materials costs (10,000 units x $30) Unit-level labor costs (10,000 units x $40) Unit-level overhead costs (10,000 x $8) Depreciation on manufacturing equipment Model K production supervisor's salary Inventory holding costs Allocated portion of facility-level costs Total costs $ 300,000 400,000 80,000 120,000 120,000 240,000 160,000 $1,420,000 An independent contractor has offered to make the same product for Adaire for $70 each. 1. The manufacturing equipment originally cost $840,000 and has a book value of $480,000, a remaining useful life of four years, and a zero salvage value. If the equipment is not used to produce Model K in the production process, it can be leased for $80,000 per year. 2. Adaire has the opportunity to purchase for $480,000 new manufacturing equipment that will have an expected useful life of four years and a…arrow_forwardCompute for the cost of Product X Motor Company Overhead Estimates for 2022 Activity Cost Driver Materials Handling No. of Kilos Production Set-ups No. of Runs Quality Inspections Inspection hours Machine Depreciation Machine hours Additional Data Direct Labor Direct Materials Materials Handling Production Set-ups Quality Inspections Machine Depreciation P40,040.00 P42,140.00 P2,100.00 O P1,158.00 Product X 60 Kilos 20 Runs 100 Inspection hours 1200 Machine hours 500.00 1,600.00 No. of Cost Driver units Overhead costs 50,000.00 200,000.00 300.00 300,000.00 4,000.00 600,000.00 20,000.00 80,000.00arrow_forwardplease answer first and second questionsarrow_forward
- View Policies Current Attempt in Progress Wilson Company manufactures a line of lightweight running shoes. CEO Charles Wilson estimated that the company would incur $7,200,000 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 400,000 direct labor hours and 400,000 machine hours. (a) Assume that Wilson Company uses direct labor hours as its manufacturing overhead application base. Calculate the company's predetermined overhead rate. Company's predetermined overhead rate $ eTextbook and Media Save for Later /DLH Attempts: 0 of 4 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answerarrow_forwardComprehensive problem on unit costs, product costs. Atlanta 0office Equipment manufactures and selis metal shelving. It began operations on January 1, 2017. Costs incurred for 2017 are as follows (V stands for variable; Fstands for fixed): $140,000 V 22,000 V 5,000 V 18,000 V 14,000 F 8,000 V 26,000 F 120,000 V 43,000 F 54,000F Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Indirect manufacturing labor costs Other indirect manufacturing costs Other indirect manufacturing costs Marketing, distribution, and customer-service costs Marketing, distribution, and customer-service costs Administrative costs Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold. Inventory data are as follows: Ending: December 31, 2017 2,300 Ibs O units 7 units Beginning: January 1, 2017 Direct materials O units O units Work in…arrow_forwardVehicle Production Numbers Model 3/Y 292,731 Model S/X 13,109 Total 305,840 Estimated Total Annual Overhead $3,727,000,000 Possible Cost Driver Information Amount for Model 3 in Q4 2021 Amount for Model S in Q4 2021 Estimated Total Annual Amount Number of vehicles (units) 292,731 13,109 950,000 Direct labor hours 1,651,000 428,562 8,250,000 Number of machine hours 792,156 122,892 3,525,000 Factory square footage* 6,500,000 3,000,000 9,250,000 Number of setups 334,587 62,498 1,620,000 Number of inspections 6,425,896 1,825,694 33,150,000 Number of unique parts per vehicle* 7,400 8,800 8,750 Number of shipments 1,950 1,025 12,500 Number of engineering support calls 68,255 21,356 350,000 Number of parts 1,211,084,000 141,653,600 5,350,000,000 Number of engineering support hours 194,572 95,200 1,242,000 Number of unique…arrow_forward
- View Policies Current Attempt in Progress Foxx Company incurs $440000 overhead costs each year in its three main departments, setup ($20000), machining ($295000), and packing ($125000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours Orders packed 1000 4000 350 150 Number of products manufactured 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year? O $88000 o $220000 e $132000 $147500arrow_forwardQuestion Content Area Prior to installing a JIT system, Grindstone Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation. The maintenance costs totaled $432,000 per year. The machine hours used by each product and the quantity produced of each product are as follows: Machine Hours Quantity Produced 4-inch 5,000 15,000 rolls 6-inch 12,000 12,500 rolls 9-inch 7,000 11,200 rolls After installing JIT, three manufacturing cells were created, and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $432,000; however, these costs are now traceable to each cell. Cell, 4-inch $125,000 Cell, 6-inch 175,000 Cell, 9-inch 165,000 The maintenance cost per roll of 9-inch insulation before JIT is installed would be a. $14.00. b. $11.25. c. $7.75. d. $30.00.arrow_forwardCost & Management Accounting AC336 Question 3 (13 Marks) Krypton Inc. manufactures two products, Vintex and Bromal. The company estimated it would incur $160,690 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labour hours. Data concerning the current period's operations appear below: Estimated Volume Direct labour hours per unit Direct labour cost per unit Direct material cost per unit Activity cost pool Material acquisition costs Machine costs General factory costs Required: Activity cost pool Material acquisition costs Machine costs General factory costs Vintex 4,700 units 2.1 hours Estimated overhead costs $33.60 $4.80 The company is considering using an activity-based costing system to compute unit product costs instead of its traditional single plant-wide system based on direct labour hours. The activity- based costing system would use three activity cost pools and drivers: Driver Purchase orders…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Accounting (Text Only)
Accounting
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License