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I have attached 6 questions Question 1: The Samco Division of Buylow Mfg began the month of September with beginning work in process of 4,000
I have attached 6 questions
Question 1: The Samco Division of Buylow Mfg began the month of September with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10,000 units. Ending work in process contains 1,000 units that are 100% complete as to materials and 60% complete as to conversion costs. Instructions Compute the equivalent units of production for materials and conversion costs for the month of September Question 2: Joan Manufacturing Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system. a) Purchased raw materials for $50,000 on account. b) Raw materials requisitioned for production were: Direct materials: Mixing department $20,000; Finishing department $14,000 c) Incurred labor costs of $80,000 d) Factory labor used: Mixing dept. $48,000; Finishing dept. $32,000 e. Manufacturing overhead is applied to the product based on machine hours used in each department: Mixing department --600 machine hours at $45 per machine hour Finishing department --500 machine hours at $30 per machine hour f) Units costing $65,000 were completed in the mixing department and were transferred tot he finishing Department. g) Units costs $58,000 were completed in the Finishing department and were transferred to finished goods. H) Finished goods costing $35,000 were sold on account for $54,000. Instructions Prepare the journal entries to record the preceding transactions for Joan Manufacturing Company. Question 3: Morgan Corporation accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven July 12,000 Total Cost 16,000 August 8000 14,500 Sept 9000 11500 Oct 6000 12000 Instructions Compute the variable and fixed cost elements using the high-low method. Question 4: Goforth Company reports the following results for the month of November: Sales (10,000 units) Variable costs Contribution margin $600,000 420,000 180,000 Fixed costs 110,000 Net income 70,000 Management is considering the following independent courses of action to increase net income. (each of the alternatives is compared to the original income statement). 1. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 65% of sales. 3. Reduce fixed costs by $15,000. Instructions If maximizing net income is the objective, which is the best course of action? Be sure to show all calculations for each alternative to prove your choice to receive credit! Question 5: In the month of October, Johnson Company sold 900 units of product. The average sales price was $30. During the month, fixed costs were $7,200 and variable costs were 60% of sales. Instructions (a) Determine the contribution margin in dollars, per unit, and as a ratio. (b) Using the contribution margin technique, compute the break-even point in dollars and in units. Question 6: The Mixing Department uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $133,000 in conversion costs were charged to the department. The beginning work in process inventory was $108,000 on July 1, comprised of $80,000 of materials costs and $28,000 of conversion costs. Other data for the month of July are as follows: Beginning work in process inventory, 7/1 25,000 units (40% complete) Units completed and transferred out 90,000 units Ending work in process inventory, 7/31 10,000 units (20%) complete) Instructions Prepare a complete Cost Production Report showing units and costs, accounted for and equivalent units of production. Be sure to show a cost reconciliation scheduleStep by Step Solution
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