Required information [The following information applies to the questions displayed below.] California Orchards reports the following sales data for the year ended December 31. Grade of Walnuts Number 1 Number 2 Number 3 Total Sales $ 486,000 324,000 270,000 $ 1,080,000 The company incurred the following joint costs for the year. $ Tree pruning and care 324,000 243,000 Pickup, sorting, and grading 2. Compute gross profit for each of the three grades of walnuts. Assume, cost of goods sold consists only of the joint costs. Grade Number 1 Gross Profit Number 2 Number 3 Total

Required information [The following information applies to the questions displayed below.] California Orchards reports the following sales data for the year ended December 31. Grade of Walnuts Number 1 Number 2 Number 3 Total Sales $ 486,000 324,000 270,000 $ 1,080,000 The company incurred the following joint costs for the year. $ Tree pruning and care 324,000 243,000 Pickup, sorting, and grading 2. Compute gross profit for each of the three grades of walnuts. Assume, cost of goods sold consists only of the joint costs. Grade Number 1 Gross Profit Number 2 Number 3 Total

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 15MCQ: Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year, Barnard...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
Jackson Company manufactures one main product and two by-products, A and B. For April, the following data are available: Main By- Product Product A B Total Sales Rs. 75,000 Rs. 6,000 Rs. 3,500 Rs. 84,500 Manufacturing cost after separation Rs. 11,500 Rs. 1,100 Rs. 900 Rs. 13,500 Marketing and administrative expenses 6,000 750 550 7,300 Manufacturing cost before separation 37,500 Profit allowed for A and B is 15% and 12%, respectively. Required: 1. Calculate manufacturing cost before separation for by-products A and B, using the market value (reversal cost) method. 2. Prepare an income statement, detailing sales and costs for each product. 3. Comment on the reliability of costing by-products A and B in relation to the assignment of balance joint cost on main product.
Materials used, P326,000. Total manufacturing costs charged to production during the year (including direct materials, direct labor, and factory overhead applied at the rate of 60% of direct labor cost), P686,000. Cost of goods available for sale, P826,000. Selling and general expenses, P25,000. 1.What is the amount of direct materials purchased during the year? 2.What is the total conversion cost? 3.What is the direct labor costs charged to production during the year? 4.How much is the total prime cost? 5.The following selected information pertains to Top Gun Manufacturing Inc.: Direct materials of P625,000, indirect materials of P125,000, direct labor of P750,000, indirect labor of P112,500, and factory overhead (not including indirect materials and indirect labor) of P375,000. How much is the conversion cost.
Construct and interpret a product profitability report, allocating selling and administrative expenses Naper Inc. manufactures power equipment. Naper has two primary products—generators and air compressors. The following report was prepared by the controller for Naper's senior marketing management for the year ended December 31: Line Item Description Generators Air Compressors Total Revenue $4,200,000 $3,000,000 $7,200,000 Cost of goods sold (2,940,000) (2,100,000) (5,040,000) Gross profit $1,260,000 $900,000 $2,160,000 Selling and administrative expenses (610,000) Operating income $1,550,000 The marketing management team was concerned that the selling and administrative expenses were not traced to the products. Marketing management believed that some products consumed larger amounts of selling and administrative expense than did other products. To verify this, the controller was asked to prepare a complete product profitability report, using…
Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units 600 Units produced 2,800 Units sold 2,900 Ending balance, in units 500 Production costs: Variable manufacturing costs per unit $60 Total fixed manufacturing costs $42,000 What is the unit product cost for the year using absorption costing? A. $84 B. $75 C. $130 D. $74
tps://ezto.mheducation.com/ext/map/index.h Saved Required information [The following information applies to the questions displayed below.] Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time the company produced 60,000 units and sold 55,000 units at a sales price of $15 per unit. Cost information for this year is shown in the following table: Production costs $ 2.50 per unit Direct materials Direct labor $ 3.00 per unit $ Variable overhead Fixed overhead 0.75 per unit $240,000 in total Non-production costs Variable selling and administrative Fixed selling and administrative $ 10,000 in total $50,000 in total Given the Scavenger Company data, what is net income using absorption costing? Multiple Choice < Prev 5 of 7 #
XSport Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $10,525,000 Sales—Summer Sports Division 13,610,000 Cost of Goods Sold—Winter Sports Division 6,280,000 Cost of Goods Sold—Summer Sports Division 7,868,000 Sales expense—Winter Sports Division 1,650,000 Sales expense—Summer Sports Division 1,894,000 Administrative Expense—Winter Sports Division 1,002,000 Administrative Expense—Summer Sports Division 1,204,400 Advertising Expense 479,000 Transportation Expense 144,500 Accounts Receivable Collection Expense 120,400 Warehouse Expense 1,164,000 The bases to be used in allocating expenses, together with other essential information, are as follows: A.…
Required Information [The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 20,000 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute gross profit under absorption costing. RAMORT COMPANY Gross Profit (Absorption Costing) Sales Cost of goods sold Gross profit 1,200,000 $10 per unit $ 12 per unit $3 per unit $ 40,000 per year $ 2 per unit $ 65,200 per year $ 60 per unit
Sierra Company incurs the following costs to produce and sell a single product. （picture1） During the last year, 25,000 units were produced and 22,000 units were sold. The Finished Goodsinventory account at the end of the year shows a balance of $72,000 for the 3,000 unsold units.Required:1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer.2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders.a. Is the $72,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes? Explain.b. At what dollar amount should the 3,000 units be carried in the inventory for externalreporting purposes?
East Ferry Tool & Die, a manufacturer of parts for agricultural equipment, provides the following financial information for the most recent fiscal year (all costs are in thousands of dollars): Inventories: As of January 1: Direct materiale Work-in-process Finlehed goods As of December 31: Direct materiale Work-in-process Finlehed goods Other amounts (for the year): Administrative costs Direct labor Direct material purchases Indirect plant labor Indirect plant supplies Machine depreciation Marketing costs Plant depreciation Plant supervision Plant utilities Property taxes on plant and equipment Sales revenue Required: a. Prepare a cost of goods sold statement. b. Prepare an income statement. COGS Stmt Income Stmt (5000) East Ferry Tool & Die Income Statement For the Year Ended December 31 ($000) $ 247 256 824 Total marketing and administrative costs $254 249 843 3,540 5,548 6.674 Complete this question by entering your answers in the tabs below. 3,558 852 5,951 1,184 1,435 1,156 833 481…
The year-end financial statement of Wando's Vineyards reported Net revenues of $19,425,412 and Cost of goods sold of $7,204,884 in year 2. Note 3 to the financial statements reported that Inventories consisted of: Year 2 Year 1 Winemaking and packaging materials $899,620 $759,321 Work-in-process 7,297,415 6,664,571 Finished goods 4,970,687 4,271,816 Total inventories $13,167,722 $11,695,708 The inventory turnover for Year 2 was: Select one: a. 0.62 b. 0.55 c. 0.58 d. None of these are correct. e. 1.56