WIP, Ending

$3,000

Cost Sheet:
DM
DL

Job 1
$500
$400

Total Manufacturing Overhead

Total DL

$1,200
$1,000

Predetermined Overhead Rate

120%

Job 2
$300
$600

Rice Company
BEP $
CMR
Desired Profit

$480,000
40%
$84,000

Fixed Expenses
Sales to Achieve Targeted Profit

$192,000
$690,000

Williams Company
DL
MOH
DM

25%
$45,000
$25,000

Conversion Costs
Direct Labor Cost

$60,000
$15,000

of Conversion Costs

Grading Company
Decrease in Cash Account
Increase in Marketable Securities
Cash Provided by Operating Activities
Cash Used by Financing Activities

$16,000
$22,000
$24,000
$20,000

Cash Flow from Investing Activities

$2,000

Increase

Gladstone Footwear Corporation

VC
Unfavorable Spending Variance
Units Produced
Budgeted Activity

$2.82
$8,140
21,250
20,900

Actual Supplies
Actual Cost per Unit

$68,065
$3.20

Lyons Company
CM
CMR
Sales
Net Operating Income
Traceable Fixed Expenses

Division A
$60,000

Division B
30%
$240,000

$22,000
$45,000
Divisions
Total Company
A

Sales
VC
CM
Traceable FC
Segment Margin
Common FC
Net Operating Income

$120,000
$45,000
$75,000
$53,000
$22,000

$60,000

B
$200,000

$60,000

30%

Atlantic Company
Net Operating Income (Absorption Costing)
Net Operating Income (Variable Costing)
Unit Cost (Absorption Costing)
Unit Cost (Variable Costing)
Desired Ending Inventory
FMOH
Change in Inventorty
Beginning Inventory

$7,800
$10,500
$24
$15
1,460
$9
300
1,760

Black Company
Ending WIP
6,000
Materials
75%
Labor & OH
50%
Total Dollar Value of Inventory $80,000
Cost per EU (Labor & OH)
$6
EU for Materials
EU for Conversion
Ending Inv. Dollar Value
Cost per EU for Materials

4500
3000
$80,000
$14

Overland Company
Actual Maintenance Costs
Rate Variance
Actual Machine Hours
AH
Budgeted Maintenance Cost pr

$9,800
$200
8,000
$1.23
$1.20

Unfavorable

COGS
$650,000
Fixed Selling & Administrative Expenses $115,000
Variable Selling & Administrative Expense $420,000
CM
$590,000
Sales
VCOGS
V S & A Expenses
CM

$1,660,000
$650,000
$420,000

$1,070,000
$590,000

Denny Corporation
Cost of New Machine
Useful Life
Annual Operating Costs
Annual Savings
Scrap Value of Old Machine
Simple Rate of Return

$600,000
10
$20,000
$125,000
$50,000
8.18%

Lounsberry Inc
Stock
375
Price
$2,700
Sales Price/Litre as Surplus Materia $6.35
Price/Litre as Surplus Material
$7.20
Lots of
1,000
Relevant Cost of the 900 litres

$6,480

Harwichport Company
Current Ratio
Acid-Test Ratio
Current Assets
Prepaid Expenses

3
2.8
$210,000
$5,000

Current Liabilities
Inventory

$70,000
$9,000

Tolla Company

Sales

January
$350,000

Collections:
In the Month of Sales
In the Month following Sales
Uncollectible

70%
25%
5%

Discount

2%

Collections from April Sales

Collections from March Sales
Total April Collections

$281,260
$80,000
$361,260

February
$300,000

Month
March
April
$320,000
$410,000

May
$450,000

June
$470,000

Trauscht Corporation
Activity Cost Pool
Assembly
Procesing Orders
Inspection
Units of P23F
Required MH
Number of Orders
Inspection Hours
DM Cost per Unit
DL Cost per Unit
Price

Total Cost Total Activity

Activity Rate
$704,880
44,000
machine hours
$16.02
$91,428
1,900
orders
$48.12
$117,546
1,950
inspection hours $60.28
360
725
85
45
$42.30
$14.55
$132.10

Calcualtion of OH Costs:
Activity Cost Pool Activity Rate Total Activity
Assembly
$16.02
725
Procesing Orders
$48.12
85
Inspection
$60.28
45
Sales
Costs:
DM
DL
Assembly
Procesing Orders
Inspection
Product Margin

$47,556.00
$15,228.00
$5,238.00
$11,614.50
$4,090.20
$2,712.60

$38,883.30
$8,672.70

ABC Cost
$11,614.50
$4,090.20
$2,712.60

Williams Company
DL Cost
30%
MOH
$59,500
DM Cost
$37,000
Conversion Costs
$85,000
Direct Labor Cost $25,500

Units Produced
13,000
Labor Efficiency Variance $23,000 Favorable
LH
40,000
Standard Wage Rate
$13
SH Allowed for Output
SH per Unit

41,769
3.21

White Company
WIP, Beginning
WIP, Ending
DL Cost
RM Requisitioned
Sum of Debits to MOH
Sum of Credits to MOH

Balance
DL
DM
MOH
Ending Balance
FG has been credited by

$15,000
$18,000
$30,000
$25,000
$28,000
$30,000
WIP Inventory
$15,000
$82,000
$30,000
$25,000
$30,000
$18,000
$30,000

Transferred to FG

Sales
Sales Price
VC
Fixed Costs
Increase in Dollar CM
Decrease in Fixed Costs

4,000 units
$80
per unit
$50
per unit
$30,000
10%
15%

CMU

$30

Proposed Increase in CMU

$3

Total Increase in CM
$12,000
Reduction in FC
$4,500
Total Increase in Net Operating Income $16,500

Paxman Company
Acyual MOH Incurred $175,000
MOH
$9,000 overapplied
Predetermined OH Rate
$8
per DLH
Applied MOH
Actual DLH

$184,000
23,000