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Homework answers / question archive / Managerial Accounting   ACCT_2011 Question 1 Use the following to answer questions A-B: Porter Company has provided the following data for the second quarter of the most recent year:  Sales                                                 $330,000 Fixed Manufacturing Overhead         $60,000 Direct Labour                                    $77,200 Fixed Selling Expenses                     $46,250 Variable Manufacturing Overhead     $40,850 Variable Administrative Expenses     $49,700 Direct Materials                                 $49,850 Fixed Administrative Expenses          $44,000 Variable Selling Expenses                 $49,000   Assume that direct labour is a variable cost and that there were no beginning or ending inventories

Managerial Accounting   ACCT_2011 Question 1 Use the following to answer questions A-B: Porter Company has provided the following data for the second quarter of the most recent year:  Sales                                                 $330,000 Fixed Manufacturing Overhead         $60,000 Direct Labour                                    $77,200 Fixed Selling Expenses                     $46,250 Variable Manufacturing Overhead     $40,850 Variable Administrative Expenses     $49,700 Direct Materials                                 $49,850 Fixed Administrative Expenses          $44,000 Variable Selling Expenses                 $49,000   Assume that direct labour is a variable cost and that there were no beginning or ending inventories

Accounting

Managerial Accounting   ACCT_2011

Question 1

Use the following to answer questions A-B:

Porter Company has provided the following data for the second quarter of the most recent year: 

Sales                                                 $330,000

Fixed Manufacturing Overhead         $60,000

Direct Labour                                    $77,200

Fixed Selling Expenses                     $46,250

Variable Manufacturing Overhead     $40,850

Variable Administrative Expenses     $49,700

Direct Materials                                 $49,850

Fixed Administrative Expenses          $44,000

Variable Selling Expenses                 $49,000

 

Assume that direct labour is a variable cost and that there were no beginning or ending inventories.

 SHOW ALL WORK

A.        What was the total contribution margin of Porter Company for the second quarter?

           

           

 B.        What was the gross margin for Porter Company for the second quarter?

Question 2

*SHOW ALL WORK*

Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed:



 Direct materials used in production    $108,000

 Direct labour costs for the year          $56,000

 Work in process, beginning                $21,200

 Finished goods, beginning                 $47,000

 Cost of goods available for sale         $293,500

 Cost of goods sold                             $227,500

 Work in process, ending                    $18,500

 

A.        What was the balance of the finished goods inventory at the end of the year?      


 

B.        What was the manufacturing overhead cost for the year?

 

 

 

Question 3

Use the following to answer questions A-B:

 

Activities in the Challenger Company's Assembly Department for the month of March follow:

 

                                                                        Number                       Percent Completed

                                                                       of Units                   Materials         Conversion

Work-in-process inventory, March 1                7,500                         60%                 35%

Started into production during March             68,000

Work-in-process inventory, March 31              2,800                        40%                  30%

 

SHOW ALL WORK

 

 A.       Using the weighted-average method, what are the equivalent units of production for materials for March?

           

           

 

B.        Using the FIFO method, what are the equivalent units of production for conversion for March?

 

 

 

Question 4

Use the following to answer questions A-C:

 

Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows:

 

 Selling Price                                                           $47 per unit

 Variable Manufacturing Costs                                $21 per unit

 Variable Selling & Administrative Expenses            $6 per unit

 Fixed Manufacturing Overhead                              $238,000 per year

 Fixed Selling & Administrative Expenses                $337,000 per year

 

SHOW ALL WORK

 

A.        What is the break-even point in units per year?

           

           

 

B.        How many units need to be sold to earn an annual net income equal to 10% of sales?

           

           

 

C.        In the current year, the company sold 43,000 units. Due to competition, management will be forced to lower the selling price by 10% next year. How many units must be sold next year to earn the same income as was earned in the current year?

 

 

Question 5

Use the following to answer questions A-D:

 

The following data (in thousands of dollars) have been taken from the accounting records of Wingit Corporation for the year just ended.

 

 Sales:                                                                 $990

 Raw materials inventory, beginning                    $55

 Raw materials inventory, ending                         $82

 Purchases of raw materials                                $138

 Direct labour                                                      $212

 Manufacturing overhead                                    $247

 Administrative expenses                                     $150

 Selling expenses                                                $140

 Work-in-process inventory, beginning                $76

6 Work-in-process inventory, ending                   $50

 Finished goods inventory, beginning                  $128

 Finished goods inventory, ending                       $173

 

*SHOW ALL WORK*

 

A.        What was the cost (in thousands of dollars) of the raw materials used in production during the year?       

 

B.        What was the cost of goods manufactured (finished) for the year (in thousands of dollars)?

 

C.        What was the cost of goods sold (in thousands of dollars) for the year?\

 

D.        What was the net income (in thousands of dollars) for the year?

 

 

 

Question 6

Use the following to answer questions A-B:

 

Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with estimated costs and expected activity as follows:

 

  Activity           Estimated               Expected Activity

Cost Pool         Cost                 Product A        Product B       

Activity 1        $17,680                  650                120     

Activity 2        $19,550                1,100               800     

Activity 3        $ 10,381                  60                 170     

 

SHOW ALL WORK

 

A.        The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity-based costing system is closest to which of the following?

           

           B.        The cost per unit of Product B is closest to which of the following?

 

 

 

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