Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help plz for accounting for these 5 questions Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying

need help plz for accounting for these 5 questions
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 7,000 units of cell phones are as follows: Smart Stream desires a profit equal to a 16% return on invested assets of $893,290. a. Determine the total costs and the total cost amount per unit for the production and sale of 7,000 cellular phones. Round the cost per unit to two decimal places. b. Determine the total cost markup percentage for cellular phones. Round your answer to two decimal places. % c. Determine the selling price of cellular phones. Round to the nearest cent. $ per cellular phone Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass that it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $178,000 for the company as a whole. In addition, the following information is available about the three products: a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. b. Prepare an analysis showing which product is the most profitable per bottleneck hour. Round the "Unit contribution margin per production bottleneck hour" amounts to the nearest cent. Target Costing Laser Cast Inc. manufactures color laser printers. Model 120 presently sells for $300 and has a product cost of $240, as follows: It is estimated that the competitive selling price for color laser printers of this type will drop to $290 next year. Laser Cast has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost-reduction ideas: 1. Purchase a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit. 2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $6 per unit. 3. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 45% of the factory overhead are related to running injection molding machines. The direct labor rate is $21 per hour. a. Determine the target cost for Model J20, assuming that the historical markup on product cost and selling price are maintained. Round your final answer to two decimal places. $ per unit b. Determine the required cost reduction. Enter as a positive number. Round your final answer to two decimal places. $ per unit c. Evaluate the three engineering improvements together to determine if the required cost reduction (drift) can be achieved. Enter all amounts as positive numbers. Do not round interim calculations but round your final answers to two decimal places. Differential Analysis for Machine Replacement Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $83,300, the accumulated depreciation is $33,300, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $173,300. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations: a. Prepare a differential analysis dated May 4 to determine whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2 ). Prepare the analysis over the useful life of the new machine. If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $598,700 and has $348,900 of accumulated depreciation to date, with a new machine that has a purchase price of $483,700. The old machine could be sold for $64,200. The annual variable production costs associated with the old machine are estimated to be $157,400 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,000 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter " 0 ", If required, use a minus sign to indicate a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Feedback "Busin, wina For the continue and replace alternatives subtract the costs from the revenues. Multiply the variable production costs for the eight year life. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2 . a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Feedback tomivina Compare the differential revenues and differential costs of continuing vs. replacing. Which one has the greatest positive differential effect on income? b. What is the sunk cost in this situation? The sunk cost is 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitality Management Accounting

Authors: Michael M. Coltman, Martin G. Jagels, Martin Jagels

7th Edition

0471348848, 978-0471348849

More Books

Students also viewed these Accounting questions

Question

Whether training would be needed, and what methods would be used.

Answered: 1 week ago

Question

What should be the purpose of performance management and appraisal?

Answered: 1 week ago

Question

The issue of staff sensitivity to feedback

Answered: 1 week ago