please answer all parts of rhe questions! will leave a rate
Acct 222 Extra Credit (Ch1-8. 35 points) Spring, 2019 Probleml. E2-31B Classify costs along the value chain for a manufacturer (5 point manufactuer Sabre Ele tronics provides the following infomation for its costs last month (in-illion Delivery expense to customers via UPS Salaries of salespeople Chipset (the set of chips used on a phone's $10 S6 $60 motherboard) Exterior case for phone Assembly-line workers' wages Technical customer-support hotline Depreciation on plant and Rearrange production process to accommodate $4 $12 S5 565 equipment new robot $i 1-800 (toll-free) line for customer orders Salaries of scientists who developed new model $3 $11 Requirements Classify cach of these costs according to its place in the value chain (R&D, Design, Production, Marketing, Distribution, or Customer Service). Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Compute the total costs for each value chain category. How much are the total product costs? How much are the total prime costs? How much are the total conversion costs? 1. 2. 3. 4. 5. 6. 35 points) Spring, anny Acct 222 Extra Credit (Ch1-8. Problem 2. E2-35B Work backward to flad missing amounts (3 points) t Electronics manufactures and sells smarmphones. Uinfortunately, the company recently suffered scrious fire damage at its As a result, the accounting recoeds for October were partially destroyed and completely jumbled. Swift has hired office. you to help figure out the coetains ealy direces ofthe cecounting puzzle Assume that Swift Electronics Raw Materials Inventory Work in process inventory, October 31 Finished goods inventory.October 1 Direct labor in October Purchases of direct materials in October Work in process inventory, October 1 Revenues in October Gross profit in October Direct materials used in October Raw materials inventory. October 31 Manufacturing overhead in October $1,900 $4,300 $3,300 $9,700 $27,500 $12,700 $8,800 $3,200 Requirement Find the following amounts: a. Cost of Goods Sold in October b. Beginning Raw Materials Inventory c. Ending Finished Goods Inventory 35 points) Spring. 201s Acct 222 Extra Credit (Ch1-8. Problem 4. E4-35B Compare traditional and ABC allocations on a job (5 peins Comwell Prodacts has adopsed an ABC costing system. The following manufacturing activities, indirect manufacturing cos and cosa drivers have been idantified The Job Cost Recond foe Job #504 revealed that direct materials requisitionod for the job totaled $1,250. The Job Cost Reond also showed that direct labor for this job totaled 12 hours at a wage rate of $30 per hour Total estimated MOH costs related to activity Total estimated amount of allocation base activity Activity 2,000 setups Machine setup Machining Polishing Quality control Facility-level costs otal manufacturing overhead (MOH $180,000 $1.050,000 12,000 machine hours 100,000 $320,000 $150,000 5,000 polishing cloths 4,000 tests run 50,000 DL hours $1,800,000 Other data collected on the resources used by Job#804 includet I machine setup required e 6 machine bours .4 polishing cloths 3 quality control tests run Requirements 1. Calculate the activity cost allocation rate for each of the five pools listed in the table 2, Calculate the total cost of Job #804 (use an ABC costing system). 3. Why would ABC provide a more accurate allocation of manufacturing overhead (MOH) than a plantwide rate? Assume that Cornwell Products used a traditional costing system rather than an ABC system. Its plantwide MOH rate would have been determined using direct labor (DL) hours as the allocation base. How much cost distortion would have occurred on this job? 4. Acct 222 Extra Credit (Ch1-8. 35 points) Spring. 2019 Problem E7-59B Comprehensive CVP analysis pues, Sunflower Company manufactures and sells a single peoduct. The company's sales and expenses for last year ellio Total Per Unit Sales Variable expenses Contribution margin Fixed expenses $115,000 s50 11.500 $46,000 Requirements 1.Fill in the missing numbers in the preceding table. Use the following questions to help fill in the missing numbers in the table: What is the total contribution margin? What is the total variable expense? How many units were sold? What is the per-unit variable expense? What is the per-unit contribution margin? a. b. c. d. e. 2.Answer the following questions about breakeven analysis: f. What is the breakeven point in units? g. What is the breakeven point in sales dollars? 3.Answer the following questions about target profit analysis and safety margin: How many units must the company sell in order to earn a profit of $58,000? Go back to the data given in the table. What is the current margin of safety in units? Again, go back to the data in the table. What is the margin of safety in sales dollars? Again, go back to the data in the table. percentage? h. i. j. k. What is the margin of safety in Acct 222 Problem 7 E8-43B Analyze outsourcing decision (3 points) McCall Enterprises manufactures one of the components used to assemble its main company product Spacialty Prodascts. Extra Credit (Ch1-8. 35 points) Spring, 2019 has offered to make the component at a cost of $i4.10 per unit. McCall Enterpeises" current cost is $17.00 per unit of the comrpoment, basedthe 100,000 components that McCall Enterprises currendly produces. This curent cost por unit is based on the following calculations: Direct material per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Total manufacturing costs per unit S 5.50 6.5 $17.00 None of McCall Enterprises fixed costs will be climinated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expacted to generate $30,000 of contribution margin per year. Requirements 1. If McCall Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? What is the maximum price per unit McCall Enterprises would be willing to pay if it outsources the component? 2. Acct 222 Extra Credit (Ch1-8. 35 points) Spring, 2019 Probleml. E2-31B Classify costs along the value chain for a manufacturer (5 point manufactuer Sabre Ele tronics provides the following infomation for its costs last month (in-illion Delivery expense to customers via UPS Salaries of salespeople Chipset (the set of chips used on a phone's $10 S6 $60 motherboard) Exterior case for phone Assembly-line workers' wages Technical customer-support hotline Depreciation on plant and Rearrange production process to accommodate $4 $12 S5 565 equipment new robot $i 1-800 (toll-free) line for customer orders Salaries of scientists who developed new model $3 $11 Requirements Classify cach of these costs according to its place in the value chain (R&D, Design, Production, Marketing, Distribution, or Customer Service). Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Compute the total costs for each value chain category. How much are the total product costs? How much are the total prime costs? How much are the total conversion costs? 1. 2. 3. 4. 5. 6. 35 points) Spring, anny Acct 222 Extra Credit (Ch1-8. Problem 2. E2-35B Work backward to flad missing amounts (3 points) t Electronics manufactures and sells smarmphones. Uinfortunately, the company recently suffered scrious fire damage at its As a result, the accounting recoeds for October were partially destroyed and completely jumbled. Swift has hired office. you to help figure out the coetains ealy direces ofthe cecounting puzzle Assume that Swift Electronics Raw Materials Inventory Work in process inventory, October 31 Finished goods inventory.October 1 Direct labor in October Purchases of direct materials in October Work in process inventory, October 1 Revenues in October Gross profit in October Direct materials used in October Raw materials inventory. October 31 Manufacturing overhead in October $1,900 $4,300 $3,300 $9,700 $27,500 $12,700 $8,800 $3,200 Requirement Find the following amounts: a. Cost of Goods Sold in October b. Beginning Raw Materials Inventory c. Ending Finished Goods Inventory 35 points) Spring. 201s Acct 222 Extra Credit (Ch1-8. Problem 4. E4-35B Compare traditional and ABC allocations on a job (5 peins Comwell Prodacts has adopsed an ABC costing system. The following manufacturing activities, indirect manufacturing cos and cosa drivers have been idantified The Job Cost Recond foe Job #504 revealed that direct materials requisitionod for the job totaled $1,250. The Job Cost Reond also showed that direct labor for this job totaled 12 hours at a wage rate of $30 per hour Total estimated MOH costs related to activity Total estimated amount of allocation base activity Activity 2,000 setups Machine setup Machining Polishing Quality control Facility-level costs otal manufacturing overhead (MOH $180,000 $1.050,000 12,000 machine hours 100,000 $320,000 $150,000 5,000 polishing cloths 4,000 tests run 50,000 DL hours $1,800,000 Other data collected on the resources used by Job#804 includet I machine setup required e 6 machine bours .4 polishing cloths 3 quality control tests run Requirements 1. Calculate the activity cost allocation rate for each of the five pools listed in the table 2, Calculate the total cost of Job #804 (use an ABC costing system). 3. Why would ABC provide a more accurate allocation of manufacturing overhead (MOH) than a plantwide rate? Assume that Cornwell Products used a traditional costing system rather than an ABC system. Its plantwide MOH rate would have been determined using direct labor (DL) hours as the allocation base. How much cost distortion would have occurred on this job? 4. Acct 222 Extra Credit (Ch1-8. 35 points) Spring. 2019 Problem E7-59B Comprehensive CVP analysis pues, Sunflower Company manufactures and sells a single peoduct. The company's sales and expenses for last year ellio Total Per Unit Sales Variable expenses Contribution margin Fixed expenses $115,000 s50 11.500 $46,000 Requirements 1.Fill in the missing numbers in the preceding table. Use the following questions to help fill in the missing numbers in the table: What is the total contribution margin? What is the total variable expense? How many units were sold? What is the per-unit variable expense? What is the per-unit contribution margin? a. b. c. d. e. 2.Answer the following questions about breakeven analysis: f. What is the breakeven point in units? g. What is the breakeven point in sales dollars? 3.Answer the following questions about target profit analysis and safety margin: How many units must the company sell in order to earn a profit of $58,000? Go back to the data given in the table. What is the current margin of safety in units? Again, go back to the data in the table. What is the margin of safety in sales dollars? Again, go back to the data in the table. percentage? h. i. j. k. What is the margin of safety in Acct 222 Problem 7 E8-43B Analyze outsourcing decision (3 points) McCall Enterprises manufactures one of the components used to assemble its main company product Spacialty Prodascts. Extra Credit (Ch1-8. 35 points) Spring, 2019 has offered to make the component at a cost of $i4.10 per unit. McCall Enterpeises" current cost is $17.00 per unit of the comrpoment, basedthe 100,000 components that McCall Enterprises currendly produces. This curent cost por unit is based on the following calculations: Direct material per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Total manufacturing costs per unit S 5.50 6.5 $17.00 None of McCall Enterprises fixed costs will be climinated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expacted to generate $30,000 of contribution margin per year. Requirements 1. If McCall Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? What is the maximum price per unit McCall Enterprises would be willing to pay if it outsources the component? 2
