Problem# 2 MJE Sporting Goods Company manufactured 100,000 units in 2022 and reported the following costs: Factory Utilities Coolants & lubricants - factory equipment Indirect manufacturing labor Direct manufacturing labor Direct materials, 1/1/22 Finished goods, 1/1/22 Finished goods, 12/31/22 Work-in-process, 1/1/22 Work-in-process, 12/31/22 Leasing costs - plant Depreciation factory equipment Property taxes Fire insurance Direct material purchases Direct materials, 12/31/22 factory equipment factory equipment Sales revenue Sales commissions Sales salaries Advertising costs Administration costs Required: a. What is the amount of direct materials used during 2022? 352,000 22,400 275,200 2,176,000 384,000 672,000 1,280,000 96,000 64,000 384,000 224,000 32,000 16,000 3,136,000 275,200 12,800,000 640,000 576,000 480,000 800,000 b. What manufacturing costs were added to WIP during 2022? c. Compute for the manufacturing overhead. c. What is cost of goods manufactured for 2022? d. What is cost of goods sold for 2022? e. How much is the net income of MJE Sporting Goods Company? f. How much should be reported as Inventory in the Statement of Financial Position?

Problem# 2 MJE Sporting Goods Company manufactured 100,000 units in 2022 and reported the following costs: Factory Utilities Coolants & lubricants - factory equipment Indirect manufacturing labor Direct manufacturing labor Direct materials, 1/1/22 Finished goods, 1/1/22 Finished goods, 12/31/22 Work-in-process, 1/1/22 Work-in-process, 12/31/22 Leasing costs - plant Depreciation factory equipment Property taxes Fire insurance Direct material purchases Direct materials, 12/31/22 factory equipment factory equipment Sales revenue Sales commissions Sales salaries Advertising costs Administration costs Required: a. What is the amount of direct materials used during 2022? 352,000 22,400 275,200 2,176,000 384,000 672,000 1,280,000 96,000 64,000 384,000 224,000 32,000 16,000 3,136,000 275,200 12,800,000 640,000 576,000 480,000 800,000 b. What manufacturing costs were added to WIP during 2022? c. Compute for the manufacturing overhead. c. What is cost of goods manufactured for 2022? d. What is cost of goods sold for 2022? e. How much is the net income of MJE Sporting Goods Company? f. How much should be reported as Inventory in the Statement of Financial Position?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

See similar textbooks

Similar questions

Table 3Costs:Factory Rent $ 373,000Factory Depreciation 150,000Factory Utilities 250,000Total $ 773,000Distribution of resource consumption:Activity Cost Pools TotalFixing Cutting PolishingFactory Rent 60% 20% 20% 100%Factory Depreciation 35% 20% 45% 100%Factory Utilities 20% 60% 20% 100% Use Table 3 to answer this question. XYZ Co uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system (Table 3). How much cost, in total, would be allocated in the first-stage allocation to the Polishing activity cost pool? Select one: a. $215,400 b. none of the given answer. c. $192,100 d. $254,600 e. $326,300
Units of concrete panels produced and sold Sellling price Direct Materials (volume of concrete) Direct Materials cost / each volume of concrete Manufacturing processing capcaity (volume of concrete) Conversion cost (all manufacturing cost except direct materials) Conversion cost per unit of capacity R&D employees R&D costs R&D cost per employee Market growth 2020 20,000 2,400 2,500,000 11.50 400,000 18,000,000 45.00 5 200,000 40,000 What was the change in revenue from growth component? 4,800,000 F O 4,800,000 U 2,400,000 F 480,000 F 480,000 U 2021 22,000 2,200. 2,300,000 12.00 300,000 16,000,000 53.33 4 160,000 40,000 10%
Units of concrete panels produced and sold Sellling price Direct Materials (volume of concrete) Direct Materials cost / each volume of concrete Manufacturing processing capcaity (volume of concrete) Conversion cost (all manufacturing cost except direct materials) Conversion cost per unit of capacity R&D employees R&D costs R&D cost per employee Market growth 2020 20,000 2,400 2,500,000 11.50 400,000 18,000,000 45.00 5 200,000 40,000 What was the change in R&D cost from the productivity component? (100,000) F (100,000) U (40,000) F (40,000) U (30,000) F 2021 22,000 2,200 2,300,000 12.00 300,000 16,000,000 53.33 4 160,000 40,000 10%
Evaluating Selected Cost Driver Assume that a manufacturer of specialized machine parts developed the following total cost estimating equation for manufacturing costs. Y = $14,400 + $1,250 (actual units) a. What is total estimated manufacturing costs if 180 units are produced? $Answer 0
Question 1.2 Alejandro Kirk Manufacturing produces two types of entry doors: Deluxe and Standard. The assignment basis for support costs has been direct labour dollars. For 2021, Alejandro Kirk the following data for the two products: Deluxe Standard Sales units 50,000 400,000 Sales price per unit $650.00 $475.00 Direct material and labour costs per unit $180.00 $130.00 Manufacturing support costs per unit $80.00 $120.00 Last year, Alejandro Kirk Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information: Activity Cost Driver Cost Total Deluxe Standard Setups # of setups $500,000 500 400 100 Machine related # of machine hours…
Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,800 $ 7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overh plant follow: a. Using current costing system b. Using proposed ABC system G-09 $ 106,920 53,460 42,768 $ 203,148 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. G-35 3,960 $19 Unit Cost 7 72 G-35
Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? Total labor cost Manufacturing Overhead ? 400000 100000 90000 30000 ? Calculate: A. B. Calculate cost per unit B. Describe the production costs in the equation form Y = f+ vX. C. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month
Q2. Bolts and Brackets Limited manufactures and sells two products: arms and brackets. This year for the first time it is operating an activity-based costing system before it followed absorption costing method. The planned production activity cost pools and cost driver activity levels for all the output for the year are as follows: Activity Cost Pool ($) Purchasing materials $41,500 Storing materials $41,600 Setting up machinery $26,400 Running machinery cost $73,000 Activity Level 1,000 purchase orders 650 issue notes 200 set ups 7,300 machine hours An analysis of actual annual production usage based on activity cost pool for two products types are as follows: Arms Units produced 1,000 units Purchase orders 190 Stores issue notes 105 Set ups 35 Machine hours 2600 Direct materials $8250 Direct labor Brackets 500 units 325 200 60 1275 $3750 $46000 $7600 a) Compute the activity rates. b) Calculate the total…
2 ! Required information [The following information applies to the questions displayed below.] Vintage Company reports the following information. Direct materials Direct labor Units produced per year Variable overhead Fixed overhead $ 10.40 per unit $ 20.40 per unit 24,000 units $ 10.40 per unit $ 201,600 per year Compute product cost per unit under absorption costing. (Round your answers to 2 d ces Product cost per unit using absorption costing Per unit Direct materials $ 10.40 Direct labor Variable overhead Fixed overhead 20.40 10.40 (201,600.00)
Question No. 4: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product costs:ProductABCDirect materials$35.10$51.60$58.00Direct labor22.5025.1015.90Variable manufacturing overhead2.301.701.60Fixed manufacturing overhead12.207.808.40Unit product cost$72.10$86.20$83.90Additional data concerning these products are listed below.ProductABCMixing minutes per unit1.300.800.20Selling price per unit$81.00$103.40$96.90Variable selling cost per unit$2.90$3.40$3.20Monthly demand in units310044002400The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes are available per month on these machines. Direct labor is a variable cost in this company.Required : a. How many minutes of mixing machine time be required to satisfy demand for all three products?b. How much of each product should be produced to maximize net operating income?ABCOptimal productionc. Up to how much…
Required Information The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Beta $24 32 Direct materials Direct labor Variable manufacturing overhead Traceable fFixed manufacturing overhead Variable selling expenses Common fixed expenses %2442 42 34 31. Total cost per unit $173 607$ The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane normally produces and sells 59,000 Betas per year. What is the financial advantage (disadvantage) of iscontinuing the Beta product line? o search 近

Help Save & Exit Gesualdo, Incorporated, manufactures and sells two products: Product Z6 and Product F4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product Z6 Product F4 Total direct labor-hours Direct Materials Cost per Unit $ 101.00 $ 217.20 Activity Cost Pools. Labor-related 300 600 Machine setups Order size Direct Labor- Total Direct Expected Hours Per Labor- Production Unit Hours 8.0 11.0 The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: Product Z6 Product F4 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Product F4 6,600 600 3,500 Activity Measures DLHs setups MHS Saved Estimated Overhead Cost $ 98,640 18,711 388,360 $ 505,711 2,400 6,600 9,000 als Handling Costs Submit