Abbott Suit (ASC) corporation manufactures BOTH nylon AND cotton jogging suits.

On 1/1/20, Erin Rogers ESTIMATES the following fixed costs:

Accountant's salary $10,000

Depreciation on factory equipment $4,000

Rent on Manufacturing Facility $6,000

ABBOTT SUIT CORPORATION USES DIRECT LABOR HOURS TO ALLOCATE DEPRECIATION AND RENT.

	Nylon Jogging Suits	Cotton Jogging Suits
	Std.qty/suit	Std.price/input	Std.qty/suit	Std.price/input
Direct Materials	2.5 yds/suit	$20/yd	4 yds/suit	$15/yd
Direct Labor	5 dlh/suit	$10/dlh	4 dlh/suit	$15/dlh
VOH:utilities/grease/janitor	5 mh/suit	$10/mh	8 mh/suit	$10/mh

REQUIRED:

1-Calculate the number of nylon and cotton jogging suits that need to be SOLD to achieve a goal operating income of $100,000. ASC believes that for every nylon jogging suit sold TWO TIMES AS MANY cotton jogging suits will be sold (that is if 10 nylon jogging suits are sold, then 20 cotton jogging suits will be sold). ASC estimates that it can sell nylon jogging suits for $250/nylon jogging suit and cotton jogging suits for the same price of $250/cotton jogging suit. SHOW YOUR WORK .

2-ASC currently has the following inventory balances as of the BEGINNING of the year: 0 nylon jogging suits and 0 cotton jogging suits. ASC budgets to have 200 nylon jogging suits and 300 cotton jogging suits by the end of the year. Calculate the BUDGETED # of suits that need to be produced

3-Calculate the (FPDOH) FIXED PREDETERMINED OVERHEAD RATE.

4-How many machine hours will be required of the machine(s) this year

ACTUAL RESULTS FOR THE YEAR

5-On 1/1/2020, ASC purchased 10,000 lbs of grease at $100,000 for factory equipment in CASH. Give the journal entry. GIVE THE JOURNAL ENTRY .

6-Abbott made the following purchases for the year (in CASH). Give the journal entry.

Nylon 10,000 yards for $180,000;

Cotton 10,000 yards for $140,000;

7-ASC workers requisitioned out the following from the RMI warehouse for the year 2018. Give the appropriate journal entry .

Nylon 3000 yards;

Cotton 4200 yards;

Grease 1,000 pounds

ASC workers made 1000 nylon jogging suits and 1000 cotton jogging suits.

8-ASC workers worked the following during the year and were paid IN CASH. Please give the journal entry.

Nylon workers (6000 dlh*$15/dlh);

Cotton workers (4000 dlh*$20/dlh);

Janitor wages (1000 hours for a total of $20,000)

Accountant (2000 hours for a total of $10,000).

9-ASC paid its vendors the following in CASH for the year and give the appropriate journal entry

Fisher Properties for rent $6,200

We Energies for utilities $135,000

10-Abbott has a sewing machine that was purchased in 2018 for $40,000, with a useful life of 10 years and a salvage value of 0. Give the ANNUAL depreciation journal entry for this machine .

11-Give the journal entry to APPLY overhead for BOTH VOH and FOH.

12-Create the different MOH/VOH and MOH/FOH clearing accounts. Indicate if the individual moh t-accounts are OVER- or UNDER-applied. SHOW YOUR WORK

13-CALCULATEAND JOURNALIZE- THE VOH VARIANCES FOR the yearNylon jogging workers used 10000 machine hours and cotton jogging suit workers used 10000 machine hours for the year

14-CALCULATEAND JOURNALIZE- THE FOH VARIANCES FOR the year

15-During the year, ASC sells the following: 800 nylon suits for $250/nylon suit and 800 cotton jogging suits for $300/cotton suit in CASH. Give the journal entry

16-Please CLOSE ALL VARIANCES ACCOUNTS to COGS.

17-Prepare an income statement for 2020 .

18-Please indicate whether the following variances are favorable OR unfavorable for 2020 .

1. The sales price variance for nylon suits;
2. The sales price variance for cotton suits;
3. The sales volume variance for nylon suits;
4. The sales volume variance for cotton suits.