Iranis Pricing king the Connection Integrative Exercises hapters 5-10 urniture Corporation produces sofas, recliners, and lounge chairs. Bea ced community in the southeastern part of the United States. It is a maj In fact, the economic well-being of the community is tied very strong perates a sawmill, a fabric plant, and a furniture plant in the same com Il buys logs from independent producers. The sawmill then processes th amber: firsts and seconds, No. 1 common, No. 2 common, and No. 3 comr the mill are common to the four grades of lumber. All four grades of lum ure plant. The mill transfers everything it produces to the furniture plant, a erred at cost. Trucks are used to move the lumber from the mill to the furn no outside sales exist, the mill could sell to external customers, and the sell es are known. ? a AA Coloring and Bolting Total 12,000 32,000 14,000 42,000 18,000 44,000 44,000 118,000 Weaving and Pattern 20,000 28,000 26,000 74,000 Fabric FB60 Fabric FB70 Fabric FB80 Total Departmental data on Fabric FB70 (actual costs and actual outcomes): Weaving and Pattern Coloring and Bolting 20,000 400 Beginning inventories: Units Costs: Transferred in Materials Labor Overhead Current production: Units started Units transferred out Costs: Transferred in Materials Labor $0 $80,000 $18,000 $22,000 $100,000 $8,000 $6,600 $9,000 80,000 80,000 3,200 $0 $320,000 $208,000 ? $82,000 $99,400 Chapter 10: Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pri... LONNI of AA A WLUU, ru Overhead ? ? Percentage completion: Beginning inventory 30% 40% Ending inventory 40% 50% *Units are measured in yards for the Weaving and Pattem Department and in bolts for the Coloring and Bolting Department. Note: With the exception of the cardboard bolt rods, materials are added at the beginning of each process. The cost of the rods is relatively insignificant and is included in overhead Proposed standard cost sheet for Fabric FB70 (for the Coloring and Bolting Department only): Transferred-in materials (25 yards @ $10) Other materials (100 ounces @ $0.20) Labor (3.1 hours @ $8) Fixed overhead (3.1 hours @ $5) Variable overhead (3.1 hours $5) Standard cost per unit $250.00 20.00 24.80 15.50 15.50 $325.80 Furniture Plant: of AA Service Departments Producing Departments Receiving Power $450,000 $600,000 Maintenance $300,000 General Factory $525,000 Overhead Machine hours Receiving orders Square feet Direct labor hours Cutting Assembly $750,000 $375,000 60,000 15,000 13,500 9,000 15,000 10,000 50,000 200,000 1,000 5,000 4,000 ? a AA Coloring and Bolting Total 12,000 32,000 14,000 42,000 18,000 44,000 44,000 118,000 Weaving and Pattern 20,000 28,000 26,000 74,000 Fabric FB60 Fabric FB70 Fabric FB80 Total Departmental data on Fabric FB70 (actual costs and actual outcomes): Weaving and Pattern Coloring and Bolting 20,000 400 Beginning inventories: Units Costs: Transferred in Materials Labor Overhead Current production: Units started Units transferred out Costs: Transferred in Materials Labor $0 $80,000 $18,000 $22,000 $100,000 $8,000 $6,600 $9,000 80,000 80,000 3,200 $0 $320,000 $208,000 ? $82,000 $99,400 Chapter 10: Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pri... LONNI of AA A WLUU, ru Overhead ? ? Percentage completion: Beginning inventory 30% 40% Ending inventory 40% 50% *Units are measured in yards for the Weaving and Pattem Department and in bolts for the Coloring and Bolting Department. Note: With the exception of the cardboard bolt rods, materials are added at the beginning of each process. The cost of the rods is relatively insignificant and is included in overhead Proposed standard cost sheet for Fabric FB70 (for the Coloring and Bolting Department only): Transferred-in materials (25 yards @ $10) Other materials (100 ounces @ $0.20) Labor (3.1 hours @ $8) Fixed overhead (3.1 hours @ $5) Variable overhead (3.1 hours $5) Standard cost per unit $250.00 20.00 24.80 15.50 15.50 $325.80 Furniture Plant: of AA Service Departments Producing Departments Receiving Power $450,000 $600,000 Maintenance $300,000 General Factory $525,000 Overhead Machine hours Receiving orders Square feet Direct labor hours Cutting Assembly $750,000 $375,000 60,000 15,000 13,500 9,000 15,000 10,000 50,000 200,000 1,000 5,000 4,000
