Problem 1 - XYZ Company, which began operations on January 1 of the current year, produces office chairs that sells for $350 per unit. Information related to the current year's activities follows.

XYZ Company carries its finished-goods inventory at the average unit cost of production. There was no work in process at year-end.

Required: Calculate the following (Make sure you show you work)

A. Compute the company's average unit cost of production.

B. Determine the cost of the December 31 finished-goods inventory.

C. Compute the company's cost of goods sold.

D. Compute the operating income.

Problem 2 - Eastside Manufacturing produces small electric engines. Identify the following costs as direct materials (DM), direct labor (DL), manufacturing overhead (MOH), or a period cost (P). Also indicate whether the cost is variable (V) or fixed (F) with respect to behavior to the volume produced and sold of small electric engines.

Problem 3 - The Fisher Products Company uses a job costing system. The company estimated its annual manufacturing overhead to be $225,000, and the estimated number of machine hours for the year to be 25,000 hours. This company uses machine hours to apply overhead. In the first month, the following jobs were worked on:

At the end of the first month the jobs were in the following stages. Job#205 was completed and sold, Job #105 is still being worked on, and Job#305 is completed and still on hand.

Required:

a. What is the predetermined overhead rate, if the company is using machine hours as the cost driver?

b. Complete the schedule below to determine the total cost assigned to the three jobs during the month.

c. What is the ending work in process inventory for the first month? Please give cost of job and the job number.

d. What is the ending finished goods inventory for the first month? Please give cost of job and the job number.

e. What is the cost of goods sold for the first month? Please give cost of job and the job number.

f. If actual overhead for the month is $32,000, what is the dollar amount overhead variance(difference) ? Is the overhead over or under applied?

Problem 4 - The controller for Wolfe Machining has established the following overhead cost pools and cost drivers:

Order no. 715 has the following production requirements:

Machine setups: 15

Units of Raw material: 10,000 units

Inspections: 2

Machine hours: 800

Assume also that direct material for order no 715 is $40,000 and direct labor is $15,000.

Required:

A. Complete the schedule above to calculate the pool rates

B. Compute the total overhead that should be assigned to order no. 715 by using activity-based costing

C. Compute the total cost assigned to the order.

D. Which of the two methods (traditional or ABC) is more accurate? Why?

Problem 5 - Use the simple regression output table to answer questions 1 and 2 below and use the multiple regression table to answer questions 3 and 4. Remember to show your work!

SUMMARY OUTPUT

1. What is the cost equation based on the output table above?

2. What would be the estimated cost if the independent variable was 15? (Round to the nearest cent)

SUMMARY OUTPUT

3. What is the cost equation based on the output table above?

4. What would be the estimated cost if the independent variable 1 is 5 and independent variable 2 is 7 and independent variable 3 is 2? (Round to the nearest cent)

Problem 6 - Austin Muffler, Inc., operates an automobile service facility. The table below shows information on the cost behavior.

Required: Fill in the missing amounts, labeled A through J, in the table below by the appropriate alpha character.