Ivenson Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory 850
Materials costs $8,000
Conversion costs $15,800
Percent complete with respect to materials 75%
Percent complete with respect to conversion 50%
Units started into production during the month 7,800
Units transferred to the next department during the month 5,400
Materials costs added during the month $125,848
Conversion costs added during the month $238,200
Ending work in process inventory:
Units in ending work in process inventory 3,250
Percent complete with respect to materials 95%
Percent complete with respect to conversion 30%
What are the equivalent units for conversion costs for the month in the first processing department? (Round your response to the nearest whole number.)
Madtack Company\'s beginning and ending inventories for the month of November were as follows:
November 1 November 30
Direct Materials $68,000 $60,500
Work in Process $145,000 $157,000
Finished Goods $86,100 $78,000
Production data for month follow:
Direct labor cost incurred $216,000
Actual manufacturing overhead cost incurred $122,600
Direct materials purchases $165,200
Madtack applies manufacturing overhead cost to jobs at the rate of 60% of direct labor cost incurred. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year.
Madtack Company\'s total manufacturing cost for November was:
Kumanu, Inc. is considering investing in new FMS equipment for its factory. This equipment will cost $80,000, is expected to last 6 years, and is expected to have a $10,000 salvage value at the end of 6 years. The new equipment is expected to generate cost savings of $20,000 per year in each of the 6 years. Kumanu\'s discount rate is 16%. What is the net present value of this equipment?
The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:
• Sales at $470,000, all for cash
• Merchandise inventory on October 31 was $200,000.
• The cash balance November 1 was $23,000.
• Selling and administrative expenses are budgeted at $58,400 for November and are paid for in cash.
• Budgeted depreciation for November is $24,500.
• The planned merchandise inventory on November 30 is $246,000.
• The cost of goods sold is 68% of the selling price.
• All purchases are paid for in cash.
The budgeted cash disbursements for November are:
Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed:
Direct materials used in production $111,900
Direct labor costs for the year $54,200
Work in process, beginning $22,700
Finished goods, beginning $45,500
Cost of goods available for sale $288,200
Cost of goods sold $239,400
Work in process, ending $14,900
Cost of goods manufactured for the year was:
Austin Manufacturing had the following operating data for the year just ended.
Selling price per unit $60 per unit
Variable expense per unit $22 per unit
Fixed expense $504,000
Management plans to improve the quality of its only product by: (1) replacing a component that costs $3.50 with a higher-grade component that costs $5.50; and (2) renting a packing machine for $18,000 a year. If the desired target profit is $288,000, the company must sell:
a) 21,316 units
b) 19,300 units
c) 22,500 units
d) 20,842 units
Brittman Corporation makes three products that use the current constraint-a particular type of machine. Data concerning those products appear below:
IP NI YD
Selling price per unit $183.57 $207.74 $348.15
Variable cost per unit $144.42 $155.04 $269.50
Minutes on the constraint 2.90 3.40 5.50
Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized.
Witherington Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 7,840 units, but its actual level of activity was 7,880 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue 0 $37.60
Direct labor $0 $4.10
Direct materials 0 18.00
Manufacturing overhead 49,100 1.20
Selling and administrative expenses 26,400 .60
Total expenses $75,500 $23.90
Actual results for June:
Direct labor $34,370
Direct materials $152,250
Manufacturing overhead $55,170
Selling and administrative expenses $31,910
The net operating income in the flexible budget for June would be closest to (round your answer to the nearest dollar amount):
Lucena Corporation purchased a machine 7 years ago for $339,500 when it launched product X05K. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 360 machine costing $354,700 or by a new model 280 machine costing $332,700. Management has decided to buy the model 280 machine. It has less capacity than the model 360 machine, but its capacity is sufficient to continue making product X05K. Management also considered, but rejected, the alternative of dropping product X05K and not replacing the old machine. If that were done, the $332,700 invested in the new machine could instead have been invested in a project that would have returned a total of $426,100.
In making the decision to buy the model 280 machine rather than the model 360 machine, the sunk cost was:
Superior Industries\' sales budget shows quarterly sales for the next year as follows:
Quarter Sales (units)
Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter\'s sales. Budgeted production for the second quarter should be:
a) 8,000 units
b) 8,800 units
c) 7,200 units
d) 8,400 units