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AutoSave Off case 2 - Compatibility Mode Search Orozco.rjr7@gmail.com 0 7 o File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share
AutoSave Off case 2 - Compatibility Mode Search Orozco.rjr7@gmail.com 0 7 o File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments Arial 10 v = = = ab Wrap Text 27 F Paste BIU 3 Merge & Center v $ ~ % 100 Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Analyze Data Analysis Clipboard Font Alignment Number Cells Editing G15 X for Process Costing - Assembly Department - June Process Costing - Assembly Department - July Information regarding inventory production for the Assembly Department for June is as follows: Information regarding inventory production for the Assembly Department for July is as follows: Direct materials costs in June for 41,300 units Direct labor costs incurred in June Factory overhead costs incurred in June Work completed in June: 35,700 units Ending work in process, June 30: 5,600 units, 30% completed $716,555 276,612 149,520 Direct materials costs in July for 54,200 units Direct labor costs incurred in July Factory overhead costs incurred in July Work completed in July: 52,700 units Ending work in process, July 31: 7,100 units, 90% completed $944,164 424,834 223.899 Equivalent Units of Production for Materials Equivalent Units of Production for Conversion Costs Equivalent Units of Production for Materials Equivalent Units of Production for Conversion Costs Whole Units Whole Units 0 Category Started in May Completed in June Started in June; Completed in June Started in June; Completed in July Category Started in June; Completed in July Started in July Completed in July Started in July Completed in August 35,700 5,600 TOTAL 41,300 TOTAL 1_Case_Study_Narrative 2 Spreadsheet_A 3_Spreadsheet_B Ready TO 100% Type here to search j a 56F lica ENG 1:34 PM 10/28/2021 15 AutoSave Off case 2 - Compatibility Mode Search Orozco.rjr7@gmail.com 0 7 o File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments Arial 10 A A = = = ab Wrap Text 27 F Paste BIU A 33Merge & Center v $ % -09 Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Editing Analyze Data Clipboard Font Alignment Number Cells Analysis G15 X for a) Materials cost per equivalent unit a) Materials cost per equivalent unit b) Conversion cost per equivalent unit b) Conversion cost per equivalent unit c) Cost per unit of finished goods started in May and completed in Jun. c) Cost per unit of finished goods started in Jun. and completed in Jul. d) Total cost of all finished goods started in May and completed in Jun. d) Total cost of all finished goods started in Jun. and completed in Jul. e) Cost per unit of finished goods started and completed in Jun. e) Cost per unit of finished goods started and completed in Jul. f) Total cost of all finished goods started and completed in Jun. f) Total cost of all finished goods started and completed in Jul. g) Cost per unit of the work in process inventory on Jun. 30 9) Cost per unit of the work in process inventory on Jul. 31 h) Total cost of the work in process inventory on Jul. 31 h) Total cost of the work in process inventory on Jun. 30 1_Case_Study_Narrative 2_Spreadsheet_A 3_Spreadsheet_B + Ready TO 100% Type here to search a 56F lica ENG 1:34 PM 10/28/2021 15 AutoSave Off HB case 2 - Compatibility Mode O Search orozco.rjr7@gmail.com 0 7 o File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments Arial 10 ' | = = = 20 ab Wrap Text PI 1 TT TX NA WE 2 O F Paste A BI U Insert Delete Format Merge & Center v $ % -90 Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Analyze Data Clipboard Font Alignment Number Cells Editing Analysis Z29 X fic Process Costing - Assembly Department - August Information regarding inventory production for the Assembly Department for August is as follows: Direct materials costs in August for 71,100 units Direct labor costs incurred in August Factory overhead costs incurred in August Work completed in August: 69,300 units Ending work in process, August 31: 8,900 units, 60% completed Equivalent Units of Production for Materials Equivalent Units of Production for Conversion Costs Whole Units Category Started in July Completed in August Started in August Completed in August Started in August Completed in September TOTAL 1_Case_Study_Narrative 2 Spreadsheet_A_3_Spreadsheet_B Ready 100% Type here to search a X 56F ENG 1:35 PM 10/28/2021 15 AutoSave Off HB case 2 - Compatibility Mode O Search orozco.rjr7@gmail.com 0 7 o File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments Arial 10 v = = = PI 1 TT TX NA ab Wrap Text 2 O F Paste A BIU Insert Delete Format $ % -09 3 Merge & Center v Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Editing Analyze Data Clipboard Font Alignment Number Cells Analysis 229 X for a) Materials cost per equivalent unit b) Conversion cost per equivalent unit c) Cost per unit of finished goods started in Jul. and completed in Aug. d) Total cost of all finished goods started in Jul. and completed in Aug. e) Cost per unit of finished goods started and completed in Aug. f) Total cost of all finished goods started and completed in Aug. 9) Cost per unit of the work in process inventory on Aug. 31 h) Total cost of the work in process inventory on Aug. 31 Note for August costs: Enter the amounts given in the case study for the preferred option. 1_Case_Study Narrative 2 Spreadsheet_A_3_Spreadsheet_B + Ready TO 100% Type here to search | a X 56F lica ENG 1:35 PM 10/28/2021 15 AutoSave Off case 2 - Compatibility Mode Search Orozco.rjr7@gmail.com 0 7 o File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments X Arial 10 v 27 F = = = 20 ab Wrap Text 33Merge & Center v Paste BIU $ % Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Editing Analyze Data Analysis Clipboard Font Alignment Number Cells A1 X f Tracking Manufacturing Costs on a Continuous Flow of Identical Products Version 2,991 William Black is a creative, entrepreneurial type who is constantly working on unique and innovative solutions to everyday problems and annoyances. He developed several interesting products and even garnered a limited number of online sales. But none of his inventions has taken off - until now. a William recently developed an electronic device, BallBoy, which locates golf balls above ground, in ground, and under water. The built-in technology is powerful enough to search and detect balls within a radius the length of a soccer field. BallBoy is a holster that holds smart phones of various sizes and models. It is activated once the short cable on the device is plugged into the phone. BallBoy gives walking directions to golf balls visually on the phone screen as well as via audio instructions. BallBoy is inexpensive to produce, but due to its unique design, is difficult to replicate. William is particularly pleased with BallBoy, realizing it is his best idea yet. He has a patent pending to protect the functionality and use of his William and his parents made and packaged 1,500 units of BallBoy in their garage and offered the product for sale online for US$99 per unit. William posted photos, videos, and information about BallBoy on his ecommerce site, the response was overwhelming. Within a week, orders exceeded 3,600 units! He shipped the available units and advised the remaining customers of the backorder. Customers posted rave reviews for quality, value, and functionality! William began hiring employees and expanded into the basement and backyard to scale the size of his operations. Orders continued to roll in at a pace he never imagined, and the team was barely able to keep up with the growing demand. William had neither the capacity nor the capital to expand his production. He was denied loans at several banks due to his inexperience and unproven financial track record, and his family and friends did not have money to spare. The good news is he was contacted to appear on Spark Bank, a television show where entrepreneurs present new business ideas and products to five self-made billionaires who invest in those they find appealing. On the show, the Spark Bank investors/judges were impressed with BallBoy and its potential to generate significant profit. Mike Peruvian and "Mr. Fantastic", partnered with William for a 10 percent equity stake in the business and offered adequate funding to finance inventory and a production facility. 1 Case Study_Narrative 2_Spreadsheet_A 3_Spreadsheet_B Ready 110% Type here to search a 56F lica ENG 1:35 PM 10/28/2021 15 AutoSave Off case 2 - Compatibility Mode Search Orozco.rjr7@gmail.com 0 7 o File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments X Arial 10 ' = = = 20 ab Wrap Text 27 F Paste BIU 33Merge & Center v $ % -09 Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Analyze Data Analysis Clipboard Font Alignment Number Cells Editing A1 X fa On the show, the Spark Bank investors/judges were impressed with BallBoy and its potential to generate significant profit. Mike Peruvian and "Mr. Fantastic", partnered with William for a 10 percent equity stake in the business and offered adequate funding to finance inventory and a production facility. Mike Peruvian wanted to be sure that William was well-versed in process costing as a cost allocation technique for identical items that are manufactured in a continuous sequence. He saw this as a test of William's ability to be a good product manager. He asked William to allocate anticipated production costs for both fully and partially completed units for three consecutive months in the Assembly Department using the FIFO method of process costing. Mr. Peruvian expected William to be able to determine the cost for each unit in each of three months, explain how one period's production data feed into the next in a continuous flow, and analyze the progress of the business over time. Mr. Fantastic's" perspective was "Show me the money!" He wanted William to investigate ways to reduce production costs over time to increase profitability. The first month's production costs would be a baseline, and William should locate less expensive suppliers, labor, and/or overhead items to reduce unit costs in the second and third months. This would involve decision points for William since a change in one cost might impact another cost. William begins by thinking about the production process. He determines that it will be most efficient if he moves materials from the stockroom as infrequently as possible, particularly since there is sufficient space in the production area to stage all materials needed to fully assemble items as they enter the Assembly department. He estimates that units will spend no more than three weeks in the Assembly Department and recognizes that conversion costs will be incurred throughout this period. The first month of operations in the new facility will be June, and William analyzes costs for June, July, and August in his pro-forma analyses. Based on sales projections in good-weather conditions, William estimates he will need to produce the following numbers of new units per month: June, 41,300; July, 54,200; August, 71,100. He realizes not all of the new units started in a month will be completed the same month. He estimates how many partially completed units will remain in Work in Process at the end of each month: William realizes not all of the new units started in a month will be completed the same month. He estimates how many partially completed units will remain in Work in Process at the end of each month, as follows: 1_Case_Study_Narrative 2 Spreadsheet_A 3_Spreadsheet_B Ready 110% Type here to search j a 56F ic ENG 1:35 PM 10/28/2021 15 AutoSave Off case 2 - Compatibility Mode Search Orozco.rjr7@gmail.com 0 7 o File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments Arial 10 v 27 F = = = 20 ab Wrap Text 33Merge & Center v Paste BIU $ ~ % 100 Insert Delete Format Analyze Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Editing Data Clipboard Font Alignment Number Cells Analysis A1 X fa Based on sales projections in good-weather conditions, William estimates he will need to produce the following numbers of new units per month: June, 41,300; July, 54,200; August, 71,100. He realizes not all of the new units started in a month will be completed the same month. He estimates how many partially completed units will remain in Work in Process at the end of each month: William realizes not all of the new units started in a month will be completed the same month. He estimates how many partially completed units will remain in Work in Process at the end of each month, as follows: June July August 5,600 units; 30% of the conversion completed 7,100 units; 90% of the conversion completed 8,900 units; 60% of the conversion completed He estimates the following expenditures for June: direct materials, US $716,555, direct labor costs, US $276,612; factory overhead, US $149,520. In July, William projects factory overhead cost per equivalent unit will decrease since some initial overhead costs in June pertained to the first month only. He also believes that the materials cost per unit will increase due to political decisions regarding the NAFTA trade agreement In August, direct labor will likely increase per equivalent unit based on the contractual rate increase after the 60-day probationary period. William chooses the better of the two options below regarding materials and overhead in August: 1. Direct materials, US $1,239,984; direct labor, US $518,700; factory overhead, US $266,175 2. Direct materials, US $1,235,007, direct labor, US $518,700; factory overhead, US $273,000 Version 2,991 William develops a spreadsheet (see Figure 1) to analyze cost data for the three months 1_Case Study Narrative 2 Spreadsheet_A 3_Spreadsheet_B + Ready 110% o Type here to search a 56F lica ENG 1:36 PM 10/28/2021 15
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