1. In 2011, the Gallo Manufacturing Company spent $ 90 million on research and development (R & D) costs to create long-lasting batteries for use in computers. All R & D expenses were expensed in 2011 in accordance with FASB standards. Manufacturing costs (direct materials, direct labor, and overhead costs) are expected to be $ 260 per unit. Packing, shipping and sales fees are expected to be $ 50 per unit. Gallo plans to sell 2,000,000 batteries before new research makes battery design technically obsolete. In 2011, Gallo manufactured 440,000 batteries, of which 400,000 were sold. A) Identify upstream and downstream costs. B) Determine the quantity and final inventory of products sold in 2011. 2) Job No. 58 passes through three departments: X, Y, and Z. The following information is given regarding this job:

Departments

X Y Z

Materials issued to job $8.000 $1,000 $500

Direct labor hours for job 1,000 2,000 5,000

Direct labor rate per hour $1.00 $1.50 $2.00

Sale of scrap materials arising from job $1,000 $150 $100

Total; overheads for the departments $10,000 $15,000 $25,000

Total labor hours for the departments 10,000 30,000 40,000

Required:Calculate the cost of Job No. 58 from the above figures.

3. The following costs were incurred for positions in the fiscal year ended March 31, 2019.

$

Direct materials 30,000

Direct wages 40,000

Chargeable expenses 10,000

Factory overheads 20,000

Selling & Distribution overheads 20,000

Administrative overheads 30,000

For the above job, the total price was $180,000. Required: You are required to prepare a statement showing the profit earned from the job during the year ended 31 March 2019, as well as an estimated price of a job which is to be executed in the year 2019-20. You should charge the same percentage of profit on sales as was the case for the year 2019-20. Materials, wages, and chargeable expenses will be required at $50,000, $70,000, and $20,000, respectively, for the job. The various overheads should be recovered on the following basis while calculating the estimated price: Factory overheads as a percentage of direct wages, and Administrative and selling and distribution overheads as a percentage of factory cost.