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Please help me with my accounting homework. It is greatly appreciated. There are 3 problems this week. Click the tabs at the bottom of the
Please help me with my accounting homework. It is greatly appreciated.
There are 3 problems this week. Click the tabs at the bottom of the spreadsheet to move to problems 2 and 3. Special Order Decision Lancaster Lighting Corp. produces a model of outdoor floodlight that normally sells for $15 per light. Sales per year are 500 is operating at 70% capacity. Lancaster has been presented with a special one-time export order for 40,000 lights at $11 pe the current total cost of production. Listed below are the costs based on the production of 500,000 units. There would be n this order, but there would be a one-time crating expense of $5,000. The special order would have no effect on the existing to a market that Lancaster does not normally serve. Prepare an incremental analysis and determine the effect of accepting accept this order? Costs at 500,000 units of production: Direct labor Direct materials Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost ANALYSIS: 2,500,000 1,750,000 625,000 1,250,000 6,125,000 problems 2 and 3. per light. Sales per year are 500,000 units, and the production line rder for 40,000 lights at $11 per light. The $11 price is below 500,000 units. There would be no increase in fixed costs by accepting d have no effect on the existing business because it is being exported termine the effect of accepting the special order. Should Lancaster Make-Versus-Buy Decision Sports Equipment Unlimited makes and sells soccer goals and has sales of 20,000 units per year. The plant is operating at full ca A potential supplier has approached Sports Equipment Unlimited and offered to supply the soccer goals at a finished cost of $3 per goal. If the company buys rather than manufactures, they will be able to eliminate 60% of fixed manufacturing costs by lea unused space. The current costs are as follows: Per Unit Direct labor 200,000 10.00 Direct materials 247,000 12.35 Variable manufacturing overhead 60,000 3.00 Fixed manufacturing overhead 170,000 8.50 Total manufacturing cost 677,000 33.85 INSTRUCTIONS: Prepare an incremental analysis for the decisions to make or buy the soccer goals. Show the cost of continuing to make and to buy the goals. Show the effect on net income if they buy. Should Sports Equipment Unlimited buy the goals? ant is operating at full capacity. s at a finished cost of $31.50 nufacturing costs by leasing Cash Budget Below is summary monthly income statement data for Ace Manufacturing Company. Sales revenue Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January 250,000 60,000 88,000 50,000 45,000 February 275,000 70,000 95,000 52,000 46,000 All sales are on account, and history has shown that 40% of sales is expected to be collected in the month of the sale, with 60% Direct materials are paid 50% in the month of purchase and 50% the following month. All other expenses are paid as incurred. costs (depreciation has already been eliminated). Other data: 1. December sales were $230,000. 2. Purchases of direct materials purchased in December were $50,000. 3. The company has interest payments due of $5,000 per month. 4. The cash balance on January 1 was $15,000. Instructions A. Prepare schedules for expected collections from customers and expected payments for direct materials purchases. B. Prepare a cash budget for January and February. n the month of the sale, with 60% collected the following month. er expenses are paid as incurred. All costs shown are cash-based ect materials purchasesStep by Step Solution
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