There are four questions / requirements. You should respond to these requirements using a separate word document for any part requiring a written response and
There are four questions / requirements. You should respond to these requirements using a separate word document for any part requiring a written response and an excel spreadsheet when asked to prepare responses requiring numeric solutions. This should be prepared as if your were preparing a "report" as a professional. Columns should be lined up...formulas should be used properly in excel.
All written responses should be addressed with complete sentences...grammatically correct.
In addition to the four requirements previously mentioned - answer the following. Comment on the accuracy of the two methods for determining product costs.
Generator X Case Short Answer Something's wrong! Generator X Company produces two generators. The Excel has been manufactured for more than 20 years and it sells for $900. The Power is a new model developed and marketed approximately two years ago. It sells for $1,140. Based on the information in the company's income statement for 20x1, upper management wants to downscale and spend available marketing dollars on the Power while beginning to phase out the production of the Excel Generator X Company Income Statement For the year ended December 31, 20xl Total $ 4,560,000 $19,800,000 $24,360,000 3,192,000 12,540,000 15,732,000 Power Excel Sales Cost of goods sold Gross Profit Selling and administrative expenses S 1,368,000 S 7,260,000 S 8,628,000 6,808,000 $ 390.000 $ 1.430.000 $ 1,820,000 978,000 5,830,000 Net Income 4,000 $97.50 22,000 S65.00 Units Produced and sold Net Income per unit sold The standard unit costs of the Power and Excel generators are as follows Power Excel $ 208 Direct Materials Direct Labor $584 Power(3.5 hr. X $12) Excel(1.5 hr. X $12) 42 Machine usage Power(4 hr. X $18) Excel(8 hr. X S 18 Manufacturing overhead* Total Standard cost 72 100 798 144 200 $ 570 Generator X Case Short Answer Something's wrong! Generator X Company produces two generators. The Excel has been manufactured for more than 20 years and it sells for $900. The Power is a new model developed and marketed approximately two years ago. It sells for $1,140. Based on the information in the company's income statement for 20x1, upper management wants to downscale and spend available marketing dollars on the Power while beginning to phase out the production of the Excel Generator X Company Income Statement For the year ended December 31, 20xl Total $ 4,560,000 $19,800,000 $24,360,000 3,192,000 12,540,000 15,732,000 Power Excel Sales Cost of goods sold Gross Profit Selling and administrative expenses S 1,368,000 S 7,260,000 S 8,628,000 6,808,000 $ 390.000 $ 1.430.000 $ 1,820,000 978,000 5,830,000 Net Income 4,000 $97.50 22,000 S65.00 Units Produced and sold Net Income per unit sold The standard unit costs of the Power and Excel generators are as follows Power Excel $ 208 Direct Materials Direct Labor $584 Power(3.5 hr. X $12) Excel(1.5 hr. X $12) 42 Machine usage Power(4 hr. X $18) Excel(8 hr. X S 18 Manufacturing overhead* Total Standard cost 72 100 798 144 200 $ 570
