Question 1: If Draper wants to earn profits equal to 25% of sales revenue, how much (what fee) should it charge each of these two clients?

Why does Draper assign costs to jobs?

Do you agree with the cost analysis for the second order? Explain your answer.

Question 2: Should the two orders be accounted for as one job or two in Hiebert's system?

Question 3: What sale price per box should Ben Hiebert set for the second order? What are the advan- tages and disadvantages of this price?

Question 4: What are the advantages and disadvantages of Ortega's proposal?

Question 5: Should Nature's Own Garden compute its predetermined manufacturing overhead rate on an annual basis or monthly basis? Explain.

Question 6: How did using manufacturing cost only, instead of using all costs associated with the CompWest.com job, affect the amount of Farley's bid for the job?

Question 7: Identify the parties involved in Paul York's dilemma. What are his alternatives? How would each party be affected by each alternative? What should York do next?

Question 8: Based on what you have read above, what was Jerry's company using as a cost driver to allocate overhead to the various jobs?

Question 9: Name two ways that reducing costs on the civilian contracts would benefit the company.

Question 10: Use the data to determine the following for Delta :
•The total cost of Flight 1247, assuming a full plane (100% load factor)
•The revenue generated by Flight 1247, assuming a 100% load factor and average revenue per one-way ticket of $102
•The profit per Flight 1247, given the responses to a. and b.

Question 11: Use the data to determine the following for JetBlue :
The total cost of Flight 53, assuming a full plane (100% load factor)
The revenue generated by Flight 53, assuming a 100% load factor
The profit per Flight 53, given the responses to a. and b.

Question 12: Based on the responses to Requirements 1 and 2, carefully evaluate each of the four alter- native strategies discussed in Delta 's executive meeting.

Question 13: The analysis in this project is based on several simplifying assumptions. As a team, brain- storm factors that your quantitative evaluation does not include, but that may affect a comparison of Delta 's operations to budget carriers.

Question 14: The Filtration Department completely processed 150,000 liters in February. What was the filtration cost per liter?

Question 15: Draw a timeline for the filtration process.

Question 16: Compute the equivalent units of direct materials and conversion costs for the Filtration Department.

Question 17: Compute the total equivalent units of direct materials and conversion costs for October.

Question 18: Compute the cost per equivalent unit for direct materials and for conversion costs.

Question 19: Calculate the cost of the 35,000 units completed and transferred out and the 30,000 units, 40% complete, in the ending Work in process inventory.

Question 20: Fill in the timeline for the Blending Department.

Question 21: Use the timeline to help you compute the Blending Department's equivalent units for direct materials and for conversion costs.

Question 22: Compute the total costs of the units (gallons)
completed and transferred out to the Packaging Department.
in the Blending Department ending Work in process inventory.

Question 23: Prepare the journal entries to record the assignment of direct materials and direct labor, and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department.

Question 24: Post the journal entries to the Work in process inventory-Blending T-account. What is the ending balance?

Question 25: What is the average cost per gallon transferred out of Blending into Packaging? Why would the company managers want to know this cost?

Question 26: Draw a timeline for the Fermenting Department.
Use the timeline to help you compute the equivalent units for direct materials and for conversion costs.
Compute the total costs of the units (gallons)

completed and transferred out to the Packaging Department.
in the Fermenting Department ending Work in process inventory.

Question 27 : Prepare the journal entries to record the assignment of Direct materials and Direct labor and the allocation of Manufacturing overhead to the Fermenting Department. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department.

Question 28: Post the journal entries to the Work in process inventory-Fermenting T-account. What is the ending balance?
What is the average cost per gallon transferred out of Fermenting into Packaging? Why would Samson Winery's managers want to know this cost?

Question 29: Compute the Bottling Department equivalent units for the month of February. Use the weighted-average method.
Compute the cost per equivalent unit for February.

Question 30: Assign the costs to units completed and transferred out and to ending Work in process inventory.
Prepare the journal entry to record the cost of units completed and transferred out.

Question 31: Post all transactions to the Work in process inventory-Bottling Department T-account. What is the ending balance?
Compute the number of equivalent units and the cost per equivalent unit in the Assembly Department for November.

Question 32: Assign total costs in the Assembly Department to

(a) units completed and trans- ferred to Programming during November and (b) units still in process at November 30.

Question 33: Prepare a T-account for Work in process inventory-Assembly to show its activ- ity during November, including the November 30 balance.
Compute the number of equivalent units and the cost per equivalent unit in the Mixing Department for March.

Question 34: Show that the sum of (a) cost of goods transferred out of the Mixing Department and (b) ending Work in process inventory-Mixing equals the total cost accumu- lated in the department during March.

Question 35: Journalize all transactions affecting the company's mixing process during March, including those already posted.
Draw a timeline for the Preparation Department.

Question 36: Use the timeline to help you compute the equivalent. ( Hint : Each direct material added at a different point in the production process requires its own equivalent- unit computation.)

Question 37: Compute the total costs of the units (sheets)
completed and transferred out to the Compression Department in the Preparation Department's ending Work in process inventory.

Question 38: Prepare a timeline for Christine's Dyeing Department.
Use the timeline to help you compute the equivalent units, cost per equivalent unit, and total costs to account for in Christine's Dyeing Department for November

Question 39: Prepare the November production cost report for Christine's Dyeing Department.
Journalize all transactions affecting Christine's Dyeing Department during November, including the entries that have already been posted.

Question 40: Draw a timeline for the Testing Department.
Use the timeline to compute the number of equivalent units of work performed by the Testing Department during the period.

Question 41: Compute WaterBound's transferred-in and conversion costs per equivalent unit. Use the unit costs to assign total costs to (a) units completed and transferred out of Testing and (b) units in Testing's ending Work in process inventory.

Question 42: Compute the cost per unit for lifts completed and transferred out to Finished goods inventory. Why would management be interested in this cost?
Compute the number of equivalent units and the cost per equivalent unit in the Assembly Department for April.
Assign total costs in the Assembly Department to (a) units completed and trans- ferred to Programming during April and (b) units still in process at April 30.

Question 43: Prepare a T-account for Work in process inventory-Assembly to show its activ- ity during April, including the April 30 balance.
Compute the number of equivalent units and the cost per equivalent unit in the Mixing Department for September.

Question 44: Show that the sum of (a) cost of goods transferred out of the Mixing Department and (b) ending Work in process inventory-Mixing equals the total cost accumu- lated in the department during September.
Journalize all transactions affecting the company's mixing process during September, including those already posted.

Question 45: Draw a timeline for the Preparation Department.
Use the timeline to help you compute the equivalent units. ( Hint : Each direct material added at a different point in the production process requires its own equivalent-unit computation.)

Question 46: Compute the total costs of the units (sheets)
completed and transferred out to the Compression Department.
in the Preparation Department's ending Work in process inventory.

Question 47: Prepare the journal entry to record the cost of the sheets completed and trans- ferred out to the Compression Department.
Post the journal entries to the Work in process inventory-Preparation T-account. What is the ending balance?
Prepare a timeline for Carol's Dyeing Department.

Question 48: Use the timeline to help you compute the equivalent units, cost per equivalent unit, and total costs to account for in Carol's Dyeing Department for July.
Prepare the July production cost report for Carol's Dyeing Department.
Journalize all transactions affecting Carol's Dyeing Department during July, including the entries that have already been posted.

Question 49: Draw a timeline for the Testing Department.
Use the timeline to compute the number of equivalent units of work performed by the Testing Department during the period.

Question 50: Compute OceanBound's transferred-in and conversion costs per equivalent unit. Use the unit costs to assign total costs to (a) units completed and transferred out of Testing and (b) units in Testing's ending Work in process inventory.

Question 51: Compute the cost per unit for lifts completed and transferred out to Finished goods inventory. Why would management be interested in this cost?