Question
Please answer the six questions in the Unitron Corporation cost accounting case. The questions/assignments are as follows: (1). In a period that began iwth zero
Please answer the six questions in the Unitron Corporation cost accounting case. The questions/assignments are as follows: (1). In a period that began iwth zero inventories, how should Unitron assign the production outuput (400,000 units) of 20 batches to the sales orders (400,000 units)? The idea here is to construct a "produced as/sold as" maxtrix. (2). Compute the per unit costs for rectifiers in the 400 series under an average costing system and under a relative sales value system. (3). A. What would be the revenue, cost, and profit if the order for 600 401's were accepted for immediate shipment: - under a physical unit costing system - under a relative sales value costing system. B. What should Helen Barnes recommend to Jim Jacoby regarding this order? Why? (4). What should she recommend regarding the offer from the toy company? (5). Which method of allocation joint costs should Unitron use? Which method yields data for decision-making? Consider the behavioral implications of the two different approaches. (6). A government purchasing agent has just inquired again about the "cost plus" purchase contract for 100,000 404's The contracting official had stated that a 10% profit margin would probably be allowable, if the price were "right" ($.75, or so). How much is the "cost"? What are your thoughts about price and manufacturing strategy for this possible contract? Assuming excess manufacturing capacity is available, woudl you recommend bidding on this contract? If so, at what price?
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