Question Details

[answered] Mel Cheek is a fishing guide on the Chenega River. The fish


Please help with the attached homework assignment. please be original


Mel Cheek is a fishing guide on the Chenega River. The fish are usually found 20 to 50

 

miles upriver. Once the fish are located, Mel slows the boat to trolling speed and fishes for

 

about 6 hours before returning to dock. Mel has noted that overall fuel costs vary based on

 

"miles upriver" and he is considering changing his guide fee to separately charge

 

customers for estimated fuel costs. Below is Mel's log for 15 typical days showing "miles

 

upriver to locate fish" and "total fuel cost". 1 Miles

 

Upriver

 

37 2 41 93 3 22 73 4 28 80 5 49 99 6 25 74 7 33 85 8 37 87 9 44 93 10 24 77 11 29 80 12 45 96 13 35 83 14 36 87 15 31 80 Total 516 $1,273 Day Fuel Cost

 

$86 (a) Use the high-low method to determine the "fixed fuel cost" associated with the

 

trolling time, and the "variable fuel cost" associated with running up and down the

 

river. (b) If the sole objective of the fuel charge is to approximately recover actual costs

 

incurred each day, would "$2.50 per mile upriver" be a fair formula?

 

What

 

alternative formula might you suggest? B-18. B-18.03 (a) (b) B-18.0

 

MILES RUN COST HIGH LOW B-18.03 Greg Morrison recently graduated from mortuary school. He is considering opening his

 

own funeral home. A funeral home is a high-fixed cost business, as it requires

 

considerable expenditures for facilities, labor, and equipment, no matter how many

 

families are served. Assume the annual fixed cost of operations is $800,000. Further

 

assume that the only significant variable cost relates to burial containers like urns and

 

caskets. An average casket costs $1,200. Greg's banker has asked a variety of

 

questions in contemplation of providing a loan for this business. (a) If the average family is charged $6,000 for services and a burial container, how

 

many families must be served to clear the break-even point? (b) If the banker believes Greg will only serve 100 families during the first year in

 

business, how much will the business lose during its first year of operation? (c) If Greg believes his profits will be at least $100,000 during the first year, how

 

much is he anticipating for total revenue? (d) The banker has suggested that Greg can reduce his fixed costs by $150,000 if he

 

will not buy any vehicles. Greg can instead rent vehicles as needed. The variable

 

cost of renting is $700 per family served. Will this suggestion help Greg reach the

 

break-even point sooner? B-18.0 B-18.05 (a) Break-Even Point in Families = (b) (c) Sales for a Target Income = (d) New Break-Even Point in Families = B-18.0 B-18.05 Cool Sun produces awnings and screens. Prepare journal entries to reflect the following

 

transactions. After you complete the entries, determine the amount to include in raw

 

materials, work in process, and finished goods. Aug. 4, 20X5 Purchased fabric and aluminum to be used in the manufacturing

 

process. The purchase price was $4,000, on account. Aug. 8, 20X5 Transferred 60% of the raw materials purchased on August 4 into

 

production. Aug. 8, 20X5 Incurred direct labor costs of $3,000. Factory overhead is applied at

 

40% of the direct labor cost. Aug. 9, 20X5 Transferred completed awnings with total assigned costs of $4,400 to

 

finished goods. Aug. 10, 20X5 Sold and delivered half of the finished goods (from August 9) to a

 

customer for $4,000 cash. B-19.0 B-19.06 GENERAL JOURNAL Date Page 1

 

Accounts 8-4-X5 To record purchase of raw materials 8-8-X5 To

 

transfer

 

raw

 

materials

 

to

 

production, record direct labor costs

 

on job, and apply overhead at the

 

predetermined rate 8-9-X5 To transfer completed units to finished

 

goods inventory 8-10-X5 To record sale of finished awning for

 

$4,000 8-10-X5 To transfer finished goods to cost of

 

goods sold Debit Credit B-19.0 B-19.06 Information for three different companies follows.

 

Each company applies factory

 

overhead at the rate of 40% of direct labor cost. In each scenario, the following entry

 

was made to record the actual overhead costs:

 

Factory Overhead 85,000 Salaries Payable 50,000 Utilities Payable 15,000 Supplies

 

Accumulated Depreciation 4,000

 

16,000 Prepare a compound journal entry for each company to transfer raw materials to

 

production, record direct labor costs on each job, and apply overhead at the

 

predetermined rate. If the scenario involves underapplied or overapplied overhead,

 

prepare an additional journal entry to transfer the amount to Cost of Goods Sold. Company A Raw materials transferred to production totaled $100,000, and direct

 

labor cost was $212,500. Company B Raw materials transferred to production totaled $110,000, and direct

 

labor cost was $200,000. Company C Raw materials transferred to production totaled $90,000, and direct labor

 

cost was $225,000. B-19.0 B-19.07 B-19.0 GENERAL JOURNAL Date Accounts A To record costs and apply overhead at

 

the predetermined rate ($212,500 X

 

40% = $85,000)

 

B To record costs and apply overhead at

 

the predetermined rate ($200,000 X

 

40% = $80,000)

 

B C To record costs and apply overhead at

 

the predetermined rate ($225,000 X

 

40% = $90,000)

 

C Debit Credit B-19.07 B-17.06 Ashley Corporation provided the following list of cost data related to its manufacturing

 

operations for the month of September 20X4.

 

Beginning raw materials inventory

 

Raw materials purchased (net) $ 966,400

 

2,345,500 Ending raw materials inventory 818,200 Direct labor costs 322,300 Indirect materials 125,500 Indirect labor

 

Factory utilities and maintenance 88,900

 

456,000 Factory depreciation 56,600 Other factory related overhead 24,400 Beginning work in process 777,000 Ending work in process 717,000 (a) Arrange the cost data into a statement of cost of goods manufactured. (b) If Ashley's cost of goods sold for the month was $4,000,000, how much was the

 

increase or decrease in finished goods inventory for the month of September? B-17.06 B-17.06 B-17.06 Name:

 

Date: B-17.06 Section: (a)

 

ASHLEY CORPORATION

 

SCHEDULE OF COST OF GOODS MANUFACTURED

 

FOR THE MONTH ENDING SEPTEMBER 30, 20X4

 

Direct materials:

 

$ - $ - Raw materials transferred to production $ Direct labor - Factory overhead

 

$ - Total manufacturing costs $ - $ - Cost of goods manufactured (b) $ - Name:

 

Date: Section: B-17.06 B-17.06 Ekpro Products manufactures containment chambers for environmentally friendly

 

incinerators. Each chamber is built to customer specifications. Most of the direct labor

 

time is spent on welding activities. Following is the job cost sheet for an incinerator

 

manufactured for Benzate Corporation: Ekpro

 

Job: Job Cost Sheet

 

Benzate

 

Applied

 

Direct Material

 

Overhead

 

Cost

 

Rat

 

Qt

 

Rat

 

Hours

 

Total

 

Per Total Qty

 

Total

 

e

 

y

 

e

 

Unit

 

Direct Labor May 8, 20X7 Total Rod Burner 9 $25 $225 $ 225 Sandy Sharp 1 $12 $ 12 $ 12 Steel 10 $ 80 $800 $ 800 May 9, 20X7

 

Sandy Sharp 2 $12 $ 24 $ 24 Applied Overhea ?

 

12 $261 $800 ? $360 $ 360 $360 ### (a) What types of costs do you imagine would be included in factory overhead? If

 

overhead is applied based on direct labor hours, what is the application rate? (b) Ekpro is considering installation of a robotic machine that will do all welding

 

operations.

 

How might this decision impact the total overhead and the

 

application method? (c) How does the applied overhead relate to the actual overhead? When they are

 

not the same, what happens to the difference? Why is actual overhead not

 

assigned to each job? B-19.0 B-19.04 (a) (b) (c) B-19.04 B-19.04 Zeus Corporation produces cultured diamonds via a secretive process that grows the

 

diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are

 

produced in a single continuous process, and Zeus uses the weighted-average process

 

costing method of accounting for production.

 

The production process requires constant utilization of facilities and equipment, as well as

 

direct labor by skilled technicians. As a result, direct labor and factory overhead are both

 

deemed to be introduced uniformly throughout production. Zeus Corporation prepared the following "unit reconciliation" for the month of July:

 

Unit Reconciliation: Beginning Work in

 

Process

 

Started into Production

 

Total Units into

 

Production Quantity

 

Schedule

 

5,000

 

6,000

 

11,000 Equivalent Units Calculations:

 

Conversion

 

Direct

 

Materials Direct

 

Labor Factory

 

Overhead To Finished Goods 8,000 8,000 8,000 8,000 Ending Work in Process 3,000 1,800 1,500 1,500 9,500 9,500 Total Units Reconciled 11,000 9,800 Ending WIP Completion Status:

 

Materials = 60% and Conversion = 50% The above beginning work in process inventory had an assigned cost of $3,000,000,

 

divided between direct materials (30%), direct labor (20%), and factory overhead (50%).

 

Additional costs incurred during July were $9,500,000, divided between direct materials

 

(15%), direct labor (25%), and factory overhead (60%).

 

Prepare a schedule showing the calculation of cost per equivalent unit. B-20.0 B-20.03 B-20.0

 

Cost Per Equivalent Unit:

 

Conversion

 

Total

 

Cost

 

Beginning Work in

 

Process

 

Cost incurred during

 

period

 

Total cost

 

Equivalent units

 

Costs per equivalent

 

unit Direct

 

Materials Direct

 

Labor Factory

 

Overhead B-20.03 Zeus Corporation produces cultured diamonds via a secretive process that grows the

 

diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are

 

produced in a single continuous process, and Zeus uses the weighted-average process

 

costing method of accounting for production.

 

Below is the company's calculation of cost per equivalent unit for October. During

 

October, the company completed and transferred 8,000 diamonds to finished goods. An

 

additional 4,000 units were still in process at the end of the month. The ending work in

 

process was 60% complete with respect to direct materials and 40% complete with respect

 

to both elements of conversion cost. Prepare a schedule showing the allocation of total cost between finished goods and ending

 

work in process. Cost Per Equivalent Unit:

 

Conversion Beginning Work in

 

Process

 

Cost incurred during

 

period

 

Total cost Total

 

Cost Direct

 

Materials $ 3,900,000 $ 1,170,000 9,300,000

 

$ 13,200,000 Direct

 

Labor

 

$ Factory

 

Overhead 780,000 $ 1,950,000 1,860,000 2,325,000 5,115,000 $ 3,030,000 $ 3,105,000 $ 7,065,000 Equivalent units ? 10,400 ? 9,600 ? 9,600 Costs per equivalent

 

unit $ 291.35 $ 323.44 $ 735.94 $1,059.38

 

$1,350.72 B-20.0 B-20.04 B-20.0

 

Cost Allocation:

 

Equivalent Units:

 

Conversion

 

Total

 

Cost

 

Transferred to Finished Goods

 

Ending Work in Process Total Ending Work in Process

 

Total Cost Allocation Direct

 

Materials Direct

 

Labor Factory

 

Overhead B-20.04 Howorth Dental Products is a London-based producer of a patented anti-microbial

 

dental floss. All raw material is introduced at the beginning of the production process,

 

but considerable processing time is needed to create the anti-microbial qualities of the

 

specially designed floss. Howorth measures output in meters of floss and applies the

 

weighted-average process costing method. The following information is available for a

 

recent period: Beginning work in process inventory:

 

140,000 meters at a cost of ?46,200 for direct materials,

 

?24,900 for direct labor, and ?24,900 for factory overhead. The

 

conversion process was 55% complete.

 

Units started into production:

 

260,000 meters

 

Units completed and transferred to finished goods:

 

380,000 meters

 

Ending work in process inventory:

 

20,000 meters, 30% complete

 

Additional costs incurred during the period:

 

Direct materials, ?85,400

 

Direct labor, ?98,200

 

Factory overhead, ?98,600 Prepare a cost of production report for Howorth. B-20.05 B-20.05 Howorth Dental Cost of Production Report

 

Weighted-average method Unit Reconciliation:

 

Quantity

 

Beginning Work in Process

 

Started into Production

 

Total Units into Production Equivalent Units Calculations:

 

Conversion

 

Direct

 

Materials Transferred to Finished

 

Goods

 

Ending Work in Process

 

Total Units Reconciled Direct

 

Labor Factory

 

Overhead Ending WIP Completion Status:

 

Materials = 100% and Conversion = 30%

 

Cost Per Equivalent Unit:

 

Conversion

 

Total Cost Direct

 

Materials Direct

 

Labor Factory

 

Overhead Beginning Work in Process

 

Costs Incurred During

 

Period

 

Total cost

 

Equivalent Units (from

 

above)

 

Costs per equivalent unit Cost Allocation:

 

EQUIVALENT UNITS (from above):

 

CONVERSION Transferred to Finished

 

Goods

 

(

 

units @

 

each)

 

Ending Work in Process

 

Incurred (Material @

 

)Incurred (Conver. @

 

) Ending Work in

 

Total

 

Process

 

Total Cost Allocation Total

 

Cost Direct

 

Materials Direct

 

Labor Factory

 

Overhead B

 

2

 

0

 

.

 

0

 

5 B

 

2

 

0

 

.

 

0

 

5 Vasquez Systems produces high-quality table tops. Each table top is produced from

 

a single large tree in a three-step process consisting of milling, sanding, and cutting.

 

All raw material is introduced at the start of the milling process. The company uses

 

a process costing system for all costs incurred throughout the production cycle. The

 

following data were extracted from each department's cost of production report

 

prepared for April: Milling Dept. The beginning balance of work in process was $275,000. During

 

April, additional costs of $690,000 were incurred. The additional

 

costs were attributable to direct materials (70%), direct labor

 

(20%), and factory overhead (10%). The ending balance of work

 

in process was $160,000. Sanding Dept. The beginning balance of work in process was $175,000. During

 

April, additional costs of $400,000 were incurred. The additional

 

costs were attributable to direct labor (70%) and factory

 

overhead (30%). The ending balance of work in process was

 

$290,000. Cutting Dept. The beginning balance of work in process was $365,000. During

 

April, additional costs of $150,000 were incurred. The additional

 

costs were attributable to direct labor (60%) and factory

 

overhead (40%). The ending balance of work in process was

 

$210,000. Prepare summary journal entries to reflect costs incurred by each department

 

during April, as well as the transfer of costs between departments and into finished

 

goods. B-20.06 B-20.06 GENERAL JOURNAL Date Accounts Debit April To record material,

 

overhead for Milling labor, and To transfer completed

 

Milling to Sanding units from April April To record labor and overhead for

 

Sanding

 

April To transfer completed

 

Sanding to Cutting units from April To record labor and overhead for

 

Cutting

 

April To transfer completed units to finished

 

goods Credit B-20.0 B-20.06

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 18, 2020

PRICE: $15

Solution~0001013757.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now