Don't provide answers in image format Exercise 10-58 (Algo) Trading-Off Costs of Quality (LO 10-7, 8)The following represents the financial information for Plaza Plastics for May and JuneSales revenueCostsScrapProcess inspectionQuality trainingProduct testing equipmentField testingWarranty repairsReworkPreventive maintenanceLegal expense for warranty claimsMaterials inspectionMay$ 783,000$ 2,0602,94023,8405,2408,4803,44019,84016,2807,88011,360June$ 576,000$ 1,7701,82011,7804,4006,3803,14016,7308,6304,40011,240Required:Construct a cost of quality report for May and June.Note: Input all amounts as positive numbers. Round your percentage answers to 1 decimal place (i.e., .321 as 32.1).

The quality cost report's main objective is to reduce the overall cost of quality by lowering the…

The following represents the financial information for Plaza Plastics for May and June Sales revenue Costs Scrap Process inspection Quality training Product testing equipment Field testing Warranty repairs Rework May $ 783,000 $ 2,060 2,940 23,840 5,240 8,480 3,440 19,840 June $ 576,000 $ 1,770 1,820 11,780 4,400 6,380 3,140 16,730

The following represents the financial information for Plaza Plastics for May and June Sales revenue Costs Scrap Process inspection Quality training Product testing equipment Field testing Warranty repairs Rework May $ 783,000 $ 2,060 2,940 23,840 5,240 8,480 3,440 19,840 June $ 576,000 $ 1,770 1,820 11,780 4,400 6,380 3,140 16,730

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

See similar textbooks

Similar questions

A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Question 1. Trial balanceLand and premises 2000000Furniture 120000Inventory (01/04/19) 80000Import on duty 4000Wages of contract workers 46000Salaries 64000Carriage for goods purchased 5200Carriage for goods sold 12400Discounts 24900 25080Purchases and sales 705200 237252200 Rent 11200 13000Commission 15600 17400Bills receivable 1080012% investment (1/10/19) 136000Donation to national fund 1260010% bank loan 112000Factory rent 64000Receivables and payables 920000 240000eBank 728000Bad debts 66000 Provision for doubtful debts 20000Rates and taxes 31200BrokerageCapitalQueen corona 500000Queen covid 500000Current accountQueen corona 20000Queen covid 128000 Additional informationDue to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts, hence, they wrote off additional debts of GHc 15000 and agreed to maintain provisions for doubtful debts at 5%.They agreed to provide for discount on receivables at 5%.All…
1. The following information was reported for Gray Enterprises on December 31, 2020.Manufacturing Overhead Debit Credit 3,410 51,520 15,030 37,090 Double line4,010 Double line A. What is the actual manufacturing overhead? B. What is the allocated manufacturing overhead? C. Is manufacturing overhead underallocated or overallocated? D. Prepare the adjusting entry.Journal Date Description Debit Credit Dec. 31, 20 Dec. 31, 20 2. The following information was reported for Gray Enterprises on December 31, 2021.Manufacturing Overhead Debit Credit 2,020 56,340 15,540 31,920 Double line Double line6,860 A. What is the actual manufacturing overhead? B. What is the allocated manufacturing overhead? C. Is manufacturing overhead underallocated or overallocated? D. Prepare the adjusting entry.Journal Date Description Debit Credit Dec. 31, 20 Dec. 31, 20
Problem 10-1 (IAA) Amiable Company provided the following data at year-end: Items counted in the bodega Items included in the count specifically segregated per sales contract Items in receiving department, returned by customer, in good condition Items ordered and in the receiving department, 4,000,000 100,000 50,000 invoice not received Items ordered, invoice received but goods not received. Freight is paid by seller. Items shipped today, invoice mailed, FOB shipping point Items shipped today, invoice mailed, FOB destination Items currently being used for window display Items on counter for sale 400,000 300,000 250,000 150,000 200,000 800,000 Items in receiving department, refused by us because of damage 180,000 Items included in count, damaged and unsalable Items in the shipping department 50,000 250,000 Required: Compute the correct amount of inventory.
Problem 15-8 (IAA) to a 5% cash discount which was taken. were price of at a cost of P100,000. of the transactions? a. 4,900,000 b. 5,000,000 c. 5,100,000 d. 5,200,000 Problem 15-9 (IAA) Taiwan Company fabricated equipment for office use durine the current year. The following data were taken from the accounting records: Materials Direct labor Finished goods Office equipment 1,000,000 600,000 1,500,000 500,000 Factory overhead amounted to P1,200,000. Normal production of finished goods is 50,000 units. Due to the fabrication of the office equipment, finished goods produced totaled 35,000 units only in the current year. The office equipment is to be charged with the overhead which would have been apportioned to the 15,000 units which were not produced. apportionment of factory overhead? a. 1,100,000 b. 1,400,000 c. 1,460,000 d. 2,300,000 Acquired a at an invoice
Items counted in the bodega Amiable Company provided the following data at year-end: PROBLEMS Problem 10-1 (IAA) Amiable Company provided the following data at year-end: 4,000,000 trems included in the count specifically segregated per sales contract Items in receiving department, returned by customer, in good condition Items ordered and in the receiving department, invoice not received Items ordered, invoice received but goods not received. Freight is paid by seller. Items shipped today, invoice mailed, FOB shipping point Items shipped today, invoice mailed, FOB destination Items currently being used for window display Items on counter for sale Items in receiving department, refused by us because of damage Items included in count, damaged and unsalable Items in the shipping department 100,000 50,000 400,000 300,000 250,000 150,000 200,000 800,000 180,000 50,000 250,000 Required: Compute the correct amount of inventory.
Customers balance December 31, 2023 om customers e balance, March 31, 2024: cted in 2nd Ot 2024 Data table Total sales Budgeted purchases of direct matenal Budgeted direct labor cost Budgeted manufacturing overhead costs Variable manufacturing overhead Depreciation Insurance and property taxes Budgeted selling and administrative expenses Salaries expense Rent expense Insurance experese Depreciation experie Supples expense Print Done 208.000 40,900 37,500 1,100 1.200 6,700 4,000 1,000 1,400 6.240
Cost of Goods Manufactured; Income Statement The following data pertain to BaborCompany for the fiscal year ended December 31:[LO 3-4]Prior December 31 Current December 31Purchases of materials $165,000Direct labor 114,000Indirect labor 45,000Factory insurance 8,000Depreciation—factory 33,000Repairs and maintenance—factory 11,000Marketing expenses 144,000General and administrative expenses 86,000Materials Inventory $23,000 55,000Work-in-Process Inventory 13,000 16,000Finished Goods Inventory 17,000 24,000Sales in the current year were $625,000.Required Prepare a schedule of cost of goods manufactured and an income statement for the current yearfor Babor Company similar to those in Exhibit 3.15A.
Activity-Based Costing for a Service Company Five-Stars Insurance Company carries three major lines of insurance: auto, workers' compensation, and homeowners. The company has prepared the following report: Five-Stars Insurance Company Product Profitability Report For the Year Ended December 31 Premium revenue Estimated claims Underwriting income Underwriting income as a percent of premium revenue Workers' Auto Compensation Homeowners $5,800,000 $6,250,000 $8,200,000 (4,060,000) (4,375,000) (5,740,000) $1,740,000 $1,875,000 $2,460,000 30% 30% 30% Management is concerned that the administrative expenses may make some of the insurance lines unprofitable. However, the administrative expenses have not been allocated to the insurance lines. The controller has suggested that the administrative expenses could be assigned to the insurance lines using activity-based costing. The administrative expenses are comprised of five activities. The activities and their rates are as follows: Activity New…
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,400 Training of machine operators 26,300 Processing returned products 15,700 Scrap processing (disposal) 24,100 Rework 7,500 Preventative maintenance 28,800 Product design 44,900 Warranty work 9,400 Finished goods inspection 22,300 From the provided schedule of activity costs, determine the non-value-added costs. a.$114,500 b.$56,700 c.$229,400 d.$47,300
Allocating Transaction Price to Performance Obligations and Recording Sales Software Supplier Inc. sells to a customer a perpetual software license and post-contract customer support for a 12-month period, commencing at the time that the software is activated. Software Supplier Inc. charges $360 upfront when the software is purchased and $24 a month for 12 months, due at the end of the month. Software Supplier Inc. sells the software separately for $480 while the standalone selling price of the post-contract customer support is $240. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). a. How should the transaction price be allocated among the performance obligation(s)? Performance Obligations Software Customer support Transaction Price as Stated Standalone Selling Price…
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $51,100 Training of machine operators 26,500 Processing returned products 19,300 Scrap processing (disposal) 25,900 Rework 6,500 Preventative maintenance 29,500 Product design 45,700 Warranty work 7,500 Finished goods inspection 23,200 From the provided schedule of activity costs, determine the appraisal costs. a.$176,000 b.$74,300 c.$51,100 d.$119,500