Managerial Accounting
Mid-Term
1.)
a.) Snack-Foods division president may want to play the end-of-year games because there may be a bonus for the division president if they get certain earnings for the year. Not only a bonus for the division president; but there may be a bonus for the division itself. With that being said he could use that for the other employees to help participate in the year-end games. If corporate has seen them fallen behind, then these year-end games maybe able to apply to job security or even promotions.
b.) Each year-end games
• Acceptable- If they plan to have it maintained until January of the following year there would be no work shown and they would not need to put a transaction regarding the
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Units Materials Conversion
Units to be accounted for:
Beginning Inventory 400 360 160
Units Started into production 13,000
Units to Account for 13, 400 Beginning, WIP Completed 400 40 240
Started and Completed 12,900 12,900 12,900
Units Completed 13,330
Ending Inventory 100 50% 30%
Units to Account For 13,400
Equivalent Units 13,350 13,330
Cost Data: Units Materials Conversion
Beginning, WIP costs $5,204 $756 $4,448
Current Period Cost 392,076 29,949 362,127
Total Cost $397,280 $30,705 $366,575
Equivalent Units of Production 13,350 13,330
Cost per Equivalent Unit, a/b= $29.80 $2.30 $27.50
Cost
Assignment:
Transferred Out 396,340.00
Ending Inventory: Materials 115.00 Conversion 825.00
Total Cost to Account For 397,280.00
4.)
a.) Discretionary fixed costs may be altered in the short-term by current managerial decisions; an example can be advertising, training or even development in which a company can always alter these decisions and bring it back later. Committed fixed costs differ due to it being long term and it cannot be reduced in the short-term; such examples are depreciation on buildings
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