Cardinal Industries has the following activity and cost data…
Cardinal Industries has the following activity and cost data for the past year: MachineHours R&M Costs 385 $12340 431 13162 648 16340 348 12140 467 17888 588 15777 451 13866 606 16083 629 16937 418 13001 458 13361 618 16157 578 16004 What will the total cost be when 603 units are produced?
Read DetailsWildhorse Tortillas is about to begin its third year of oper…
Wildhorse Tortillas is about to begin its third year of operations. It planned on completing its last batch for the current year but due to inclement weather, the factory had to unexpectedly shut down which left the batch incomplete. The company has compiled the following production information for the current year: Tortillas started: 37300 units Already in process at the beginning of the year: 1150 units Complete at year-end: 34959 units Conversion: 76% complete at year end Wildhorse uses the Weighted-Average method and adds all of its Direct Materials (DM) at the beginning of the process. How many physical units will Wildhorse have in its ending inventory?
Read DetailsKara is an accountant for Villa, Inc., a small factory that…
Kara is an accountant for Villa, Inc., a small factory that manufactures disposable hospital gowns and slippers. Previously, Villa had been utilizing a traditional costing system to account for its budgeted Manufacturing Overhead (MOH) costs. After a few years, Kara recommended that the company opt for Activity-Based Costing (ABC) as that would afford it the opportunity to better account for the costs. She has determined that Villa had three key activities to use for MOH budgeted costs: Materials sorting, garment inspection, and materials management wages. She has collected the following data:Materials sorting: $38500 (3500 sorting hours)Garment inspection: $55300 (4254 inspection hours)Materials management wages: $18700 (13300 management hours)If gowns used 2000 sorting hours, then what amount of material sorting MOH costs will be allocated to slippers?
Read DetailsGingerHouse sells its product for $81 per unit. During 2025,…
GingerHouse sells its product for $81 per unit. During 2025, it produced 121400 units and sold 106400 units. Costs per unit are: direct materials $26, direct labor $10, variable overhead $5, and variable operating expenses $3. Fixed costs are $971200 manufacturing overhead, and $76000 operating expenses. Assuming no variances were reported, no beginning inventory exists, and the company uses absorption costing, what will be reported as cost of goods sold?
Read DetailsTina is currently working on assembling some numbers for her…
Tina is currently working on assembling some numbers for her client’s cost accounting practices for the current year. The client is a factory that produces condiments including ketchup and mayonnaise. It uses traditional costing, and Tina would like to calculate total cost per unit. The client has the following costs (same for both condiments): Direct Materials (DM), $88870; Direct Labor (DL), $94000; and their Manufacturing Overhead (MOH) will be 85% of their DL cost. It produced 44000 units of ketchup and 57000 units of mayonnaise during the period. What is the client’s total cost per unit for mayonnaise?
Read DetailsPeterson Bread Co can produce and sell only one of the follo…
Peterson Bread Co can produce and sell only one of the following bakery products: Unit Contribution Margin Required Bakery Hours Multi-Grain Bread $4 .3 hours Brioche Bread $3 .2 hours Peterson has oven capacity of 1,500 hours. If Peterson bakes only the most profitable product, how much will the total contribution margin be?
Read DetailsDuring 2022, inventory increased by 7600 units. The followin…
During 2022, inventory increased by 7600 units. The following information for the company is available: Variable Fixed Manufacturing costs per unit $12.00 $6.00 Operating costs (variable is per unit) $4.00 $11000 If the company uses absorption costing rather than variable costing, the effect on operating income would be a
Read DetailsRed Spruce manufacturing has two production departments and…
Red Spruce manufacturing has two production departments and two support departments. The number of employees for each department is as follows: Human Resources 7 Accounting 14 Machining – Producing 500 Assembly – Producing 240 Human Resources shows a budget of $22,500 and accounting, $109,000, for the coming year. Support department costs are allocated on the basis of the number of employees. The supporting department with the highest number of employees is assumed to provide more support. What amount would be allocated to the accounting department using the step method? (Do not round the intermediate calculations.)
Read Details