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Hi, please solve all of them Q1. Bostian Company uses a normal job-order costing system. It processes most jobs through two departments. Selected budgeted and
Hi, please solve all of them
Q1. Bostian Company uses a normal job-order costing system. It processes most jobs through two departments. Selected budgeted and actual data for the past year follow. Data for one of several jobs completed during the year also follow. Department A Department B Budgeted overhead $100,000 $500,000 Actual overhead $110,000 $520,000 Expected activity (direct labor hours) 50,000 10,000 Expected machine hours 10,000 50,000 Job 10 Direct materials $20,000 Direct labor cost: Department A (5,000 hrs. @ $6 per hr.) $30,000 Department B (1,000 hrs. @ $6 per hr.) $6,000 Machine hours used: Department A 100 Department B 1,200 Units produced 10,000 Bostian Company uses a departmental, predetermined overhead rate to assign overhead (OH) to jobs. Bostian prices its jobs at cost plus 30 percent. Required: 1. Compute the predetermined overhead rate. 2. Calculate the unit manufacturing cost for Job 10 using departmental overhead rates. Use direct labor hours for department A and machine hours for department B. 3. Assume that Job 10 was completed in May and sold in September. Prepare journal entries for the completion and sale of Job 10. Q2. The production of the firm's antihistamine product begins in the Blending Department. All materials are added at the beginning of the blending process. Output is measured in ounces. The production data for May are as shown: Production: Units in process, May 1, 70% complete Units completed and transferred out Units in process, May 31, 40% complete With respect to conversion costs. 15,000 90,000 30,000 Costs: Work in process, May 1: Direct materials Conversion costs Total work in process Current Costs: Direct materials Conversion costs Total current costs 1,500 525 2,025 18,900 4,575 23,475 Requirements: 1. Prepare a physical flow schedule for May. 2. Prepare an equivalent units schedule for May using weighted average costing method 3. Calculate the unit cost for May, using weighted average costing method. 4. Calculate the cost of goods transferred out and the cost of EWIP. 5. Calculate the FIFO equivalent units starting with the weighted average equivalent unit. Q4. Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. Sales $500,000 $500,000 Less: Variable costs 250,000 100,000 Contribution margin $250,000 $400,000 Less: Fixed costs 200,000 350,000 Operating income $ 50,000 $ 50,000 Required: 1. Compute the degree of operating leverage for each company. 2. Compute the break-even point for each company. Explain why the break-even point for Quintex, Inc., is higher. 3. Suppose that both companies experience a 50 percent increase in revenues. Compute the percentage change in profits for each company. Explain why the percentage increase in Quintex's profits is so much greater than that of Trimax. Q4. Explain the associations between COST and Asset ii) Loss iii) ExpenseStep by Step Solution
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