The inventory at June 1 and costs charged to work in process-Department 60 during june are as follows:
3800 units, 3/5 completed........$60400
Direct materials..........................378000
Direct labor.................................274000
Factory overhear..........................168000
Total factory cost be accounted for $880400
During June, 32000 units were placed into production and 31,200 were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 4.25/5 completed. Inventories are costed by the first in first out method and all materials are added at the beginning of the process.
Determine the following, presenting your computations (prepare your computations using unit cost data to four decimal places, I.e $4.4444, to minimize rounding differences):
Assuming that the direct material cost per unit is the same for May and June, by how much the conversion cost per unit increase and/or decrease from May to June?
A) 13.4633 increase
B) 6.6596 increase
C) 6.8037increase
D) None of these answers
Silver River Company sells products S and T and has made the following estimates for the coming year:
Product Unit selling price Unit variable cost Sales Mix
S $30 $24 60%
T $70 $56 40%
Fixed costs are estimated at $202,400. Determine the estimated sales in units (per product) necessary to realize an operating income of $119,600 for the coming year.
A) 8,500 Units of T & 6,500 units of S
B) 13,200 Units of S & 8,800 units of T
C) 14,000 Units of S & 21,000 units of T
D) NONE OF THESE ANSWERS
E) 23,000 Units of T & 14,000 Units of S
Selected information concerning sales and production for Walker Company for fiscal year 2013 are summarized as follows:
A. Estimated sales:
Product and region Unit sales Unit Selling
(volume) (price)
Wallet:
East 287,000 $12
West 241,000 $12
Handbag:
East 156,400 $25
West 123,600 $25
B. Estimated inventories, January 1, 2013:
Leather 18,000 sq yards Wallets 88,000 units
Lining 15,000 sq yards Handbags 48,000 units
WIP $214,400 Finished goods $1,095,600
Desired inventories, December 31, 2013
Leather 20,000 sq yards Wallets 80,000 units
Lining 12,000 sq yards Handbags 60,000 units
WIP $220,000 Finished Goods $1,565,000
Direct materials in production
Wallets: Handbags:
Leather 0.30 sq yd per unit 1.25 sq yd per unit
lining 0.10 sq yd per unit 0.25 sq yd per unit
Price per square yard:
Leather $4.50
Lining $1.20
E. Direct Labor requirements:
Wallet Handbag
Cutting Department:0.10 hr. per unit Cutting Department:0.15 hr. per unit
Sewing Department:0.25hr. Per unit Sewing Department:0.40 hr per unit
Cutting Department $12 hourly rate
Sewing Department 15 hourly rate
F. Estimated costs for fiscal year 2013:
Administrative Salary expense $618,000
Indirect factory wages 732,000
Supervisor salaries in Dept of production 360,000
Power & light 306,000
Depreciation of plant and equipment 288,000
Advertising expense 360,000
Indirect material 182,800
Sales salaries expense 715,000
Rent expense for sales and marketing 34,500
Insurance and property taxes 79,200
Office Supplies expense for Sales Dept 17,500
Travel Expense for marketing Dept 115,000
Maintenance of factory 140,280
Misc Administrative expense 25,000
G. Estimated other revenue/expenses and taxes
Interest Revenue $98,000
Interest Expense $90,000
Company's income tax rate 40%
What is the estimated cost of goods sold for 2013?
A) $9,047,780
B) NONE OF THESE ANSWERS
C) $9,880,600
D) $7,095,000
E) $12,095,350
What is the estimated direct Labor cost?
A)NONE OF THESE ANSWERS
B) $3,702,000
C) $1,437,000
D) $4,851,600
What is the estimate Net income for the company for the year 2013?
A) $1,446,732
B) $4,288,220
C) $2,403,220
D) NONE OF THESE ANSWERS
What is the estimated direct material to be purchased
A) NONE OF THESE ANSWERS
B) $2,587,500
C) $2,353,500
D) $234,000