Please help with the following problems:

P7-5A ? Prepare incremental analysis concerning elimination of divisions.

P8-1A ? Use cost-plus pricing to determine various amounts

Chapter 8 - P8-1A

Instructions for the Microsoft Excel Templates Advisory - The worksheets are not protected. You can over type any data within the worksheets. If you over type important data you can usually restore it by referencing your textbook. Detail and information on Excel is contained within the manual. Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant and bring up one of several help menus. Type your name into the cell to the right of the "Name" cell. Your name will appear on each printed sheet. Type your course identity or instructor identity into the cell to the right of "Course." This information will appear on each printed sheet. It is recommended that you enter the due date of your assignment in the cell to the right of the "Date" cell. If the workbook requires more than one printed sheet, your name, course, and date will appear on each sheet. If the workbook requires more than one printed sheet page breaks are already set for normal bond - 8 1/2 X 11" paper. The print area of the exercise or problem is defined by the grey filled cells. These grey filled cells are the cells immediately outside the print area. Each worksheet will also contain a footer that includes the exercise or problem identity, the tab you printed, the page of pages, the time, and date you printed the worksheet. The exercises and problems may be presented slightly different than in your textbook. This is to facilitate better utilization by the formulas available to you with Excel. Cells that contain data that can be used by the formulas of Excel in the solution of the exercise or problem are usually framed with black lines to help you identify those values. Place an account name or title, such as "Cash," where "Account" or "Account title" appear. Place a line title, such as "Net income," where "Title" or "Text Title" appear. Place a value, such as "8.50," where "Amount" or "Value" appears. FileName: qattachments_ab86ec0c912dfed9b7c3db3b41214986edcd4f7a.xlsx, Tab: General Instructions, Page 1 of 9, 05/05/2016, 01:20:40 Place a number, such as "3," where "Number" or "Quantity" appears. The terms "Amount" and "Value" generally refer to values such as $85.97 while the terms "Number" and "Quantity" refer to the numerical refer to 3 units or 5 years. Where text or memorandum lines are desired for journal entries, a line below the journal entry is provided. When an exercise or problem requires a text entry, such as "Based on the information, which option would you recommend?" a formatted text box is provided. This is usually identified with "Enter your text answer here" or "Place text answer here" type text. Simply click into the cell and over type the existing text. Insert the account number where "ACCT #" appears on the template during posting. Insert the journal reference where "JOURN #" appears on the template during posting. The cells of the exercises and problems are already formatted for the data. No adjustment should be necessary. Dates should be entered as "06/06/08." This will ensure that Excel will present it properly. Negative values should be preceded by a "-" (negative sign). Negative values may be shown as ($400) vice $400. The display may have "Freeze Pane" invoked so column titles remain visible during data entry. FileName: qattachments_ab86ec0c912dfed9b7c3db3b41214986edcd4f7a.xlsx, Tab: General Instructions, Page 2 of 9, 05/05/2016, 01:20:40 Name: Course: Date: E7-5 - Use incremental analysis for make-or-buy decision Managerial Accounting, 6th Edition, by Weygandt, Kieso, and Kimmel Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse Exercise E7-5 Schopp Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 70% of direct labor cost. The direct materials and direct labor cost per unit to make the lamp shades are $4.00 and $5.00 respectively. Normal production is 30,000 table lamps per year. A supplier offers to make the lamp shades at a price of $12.75 per unit. If Schopp Inc. accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45,000 of fixed manufacturing overhead currently being charged to the lamp shades will have to be absorbed by other products. Instructions: (a) Prepare the incremental analysis for the decision to make or buy the lamp shades. Make Amount Amount Formula Amount Amount Formula Direct materials Title Title Title Title Total annual cost Buy Amount Amount Formula Amount Amount Formula Net Income Increase (Decrease) Formula Formula Formula Formula Formula Formula (b) Should Schopp Inc. buy the lamp shades? Enter text answer here. (c) Would your answer be different in (b) if the productive capacity released by not making the lamp shades could be used to produce income of $25,000 ? Enter text answer here. Total annual cost (above) Opportunity cost Total cost Make Amount Amount Formula Buy Amount Amount Formula Net Income Increase (Decrease) Formula Formula Formula FileName: qattachments_ab86ec0c912dfed9b7c3db3b41214986edcd4f7a.xlsx, Tab: Exercise E7-5, Page 3 of 9, 05/05/2016, 01:20:40 Name: Course: Date: P7-5A - Prepare incremental analysis concerning elimination of divisions. Managerial Accounting, 6th Edition, by Weygandt, Kieso, and Kimmel Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse Problem P7-5A Gutierrez Company has four operating divisions. During the first quarter of 2014, the company reported aggregate income from operations of $213,000 and the following divisional results. Division I II III IV Sales $250,000 $200,000 $500,000 $450,000 Cost of goods sold 200,000 192,000 300,000 250,000 Selling and administrative expenses 75,000 60,000 60,000 50,000 Income (loss) from operations ($25,000) ($52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 75% 90% 80% 75% Selling and administrative expenses 40% 70% 50% 60% 50% Discontinuance of any division would save of the fixed costs and expenses for that division. Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be continued. Instructions: (a) Compute the contribution margin for Divisions I and II. Sales Variable costs Cost of goods sold Selling and administrative Total variable expenses Contribution margin Division I Amount Division II Amount Formula Formula Formula Formula Amount Amount Formula Formula (b)(1) Prepare an incremental analysis concerning the possible discontinuance of Division I. Division I Contribution margin (above) Fixed costs Cost of goods sold Selling and administrative Total fixed expenses Income (loss) from operations Continue Eliminate Net Income Increase (Decrease) Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula (b)(2) Prepare an incremental analysis concerning the possible discontinuance of Division II. Division II Contribution margin (above) Fixed costs Title Title Title Title Continue Eliminate Net Income Increase (Decrease) Amount Amount Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula FileName: qattachments_ab86ec0c912dfed9b7c3db3b41214986edcd4f7a.xlsx, Tab: Problem P7-5A, Page 4 of 9, 05/05/2016, 01:20:40 Name: Course: Date: (b)(3) What course of action do you recommend for each division? Enter text answer here. Enter text answer here. (c) Prepare a columnar condensed income statement for Moreno Manufacturing, assuming Division II is eliminated. Use the CVP format. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. GUTIERREZ MANUFACTURING COMPANY CVP Income Statement For the Quarter Ended March 31, 2014 Divisions I III IV Amount Amount Amount Sales Variable costs Title Title Title Contribution margin Fixed costs Title Title Title Income (loss) from operations Total Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Enter text answer here. Enter text answer here. (d) Reconcile the total income from operations, $213,000 with the total income from operations without Division II. Enter text answer here. FileName: qattachments_ab86ec0c912dfed9b7c3db3b41214986edcd4f7a.xlsx, Tab: Problem P7-5A, Page 5 of 9, 05/05/2016, 01:20:40 Name: Course: Date: P8-1A - Use cost-plus pricing to determine various amounts Managerial Accounting, 6th Edition, by Weygandt, Kieso, and Kimmel Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse Problem P8-1A Dewitt Corporation needs to set a target price for its newly designed product M14-M16. The f new product. Per unit $20.00 40.00 10.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses 5.00 Fixed selling and administrative expenses These costs are based on a budgeted volume of 80,000 units produced and sold each y cost-plus pricing methods to set its target selling price. The markup on total unit cost is Instructions: (a)(1) Compute the total variable cost per unit for M14-M16. Title Title Title Title Title Amount Amount Amount Amount Formula (a)(2) Compute the total fixed cost per unit for M14-M16. Total Costs Title Title Title Amount Amount Amount Budgeted Volume Quantity Quantity Quantity (a)(3) Compute the total cost per unit for M14-M16. Title Title Title Amount Amount Formula (b) Compute the desired ROI per unit for M14-M16. Title Amount Title Title Percentage Formula (c) Compute the target selling price for M14-M16. Title Title Title Amount Amount Formula (d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that during the year. (Round to two decimal places.) Title Title Title oduct M14-M16. The following data relate to this Total $1,440,000 960,000 oduced and sold each year.Dewitt uses 30% = = = = Cost per Unit Formula Formula Formula 60,000 Amount Formula Formula M14-M16s are sold