Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher, than the production capacity of the company. In this situation the production or contribution per bottleneck hour is calculated to determine the value of a product. a) To Determine: The contribution margin per unit for each product of Company WC.

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Chapter 24, Problem 24.6BPR

To determine

Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher, than the production capacity of the company. In this situation the production or contribution per bottleneck hour is calculated to determine the value of a product.

a)

To Determine: The contribution margin per unit for each product of Company WC.

b)

To determine

The relative product profitability per unit for each product of Company WC.

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Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $7,000, direct labor of $3,400, and applied overhead of $2,890. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on credit) for $26,000, Job 121 is started and completed, and Job 122 is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July. Job 120 Direct materials used Direct labor used $ 2,300 3,400 Job 121 $ 7,100 4,700 Job 122 $ 2,600 3,700 1. Prepare journal entries for the following July transactions and events a through e. a. Direct materials used. b. Direct labor used. c. Overhead applied. d. Sale of Job 120. e. Cost of goods sold for Job 120. Hint. Job 120 has costs from June and July. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs in Finished Goods Inventory at June…

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Answer 2

Question

Chapter 24, Problem 24.6BPR

To determine

Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher, than the production capacity of the company. In this situation the production or contribution per bottleneck hour is calculated to determine the value of a product.

a)

To Determine: The contribution margin per unit for each product of Company WC.

b)

To determine

The relative product profitability per unit for each product of Company WC.

Expert Solution & Answer

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Answer 3

Question

Chapter 24, Problem 24.6BPR

To determine

Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher, than the production capacity of the company. In this situation the production or contribution per bottleneck hour is calculated to determine the value of a product.

a)

To Determine: The contribution margin per unit for each product of Company WC.

b)

To determine

The relative product profitability per unit for each product of Company WC.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 24, Problem 24.6BPR

To determine

Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher, than the production capacity of the company. In this situation the production or contribution per bottleneck hour is calculated to determine the value of a product.

a)

To Determine: The contribution margin per unit for each product of Company WC.

b)

To determine

The relative product profitability per unit for each product of Company WC.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 24, Problem 24.6BPR

To determine

Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher, than the production capacity of the company. In this situation the production or contribution per bottleneck hour is calculated to determine the value of a product.

a)

To Determine: The contribution margin per unit for each product of Company WC.

b)

To determine

The relative product profitability per unit for each product of Company WC.

Answer 6

Chapter 24, Problem 24.6BPR

To determine

Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher, than the production capacity of the company. In this situation the production or contribution per bottleneck hour is calculated to determine the value of a product.

a)

To Determine: The contribution margin per unit for each product of Company WC.

Answer 7

Chapter 24, Problem 24.6BPR

To determine

Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher, than the production capacity of the company. In this situation the production or contribution per bottleneck hour is calculated to determine the value of a product.

a)

To Determine: The contribution margin per unit for each product of Company WC.

Answer 8

b)

To determine

The relative product profitability per unit for each product of Company WC.

Answer 9

b)

To determine

The relative product profitability per unit for each product of Company WC.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 24 - Explain the meaning of (A) differential revenue,...Ch. 24 - A company could sell a building for 250,000 or...Ch. 24 - A chemical company has a commodity-grade and...Ch. 24 - A company accepts incremental business at a...Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - In the long run, the normal selling price must he...Ch. 24 - Although the cost-plus approach to product pricing...Ch. 24 - Prob. 9DQ Ch. 24 - What is the appropriate measure of a products...

Solution Summary: The author explains that production bottleneck is a situation of constraint in the manufacturing company, where the demand for goods is higher than the production capacity of the company.

The relative product profitability per unit for each product of Company WC.

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Chapter 24 Solutions