[wonderboy1212]

Whooper plans the following for the upcoming quarter:
Month Sales: Oct - $3,000,000.00 Nov - $3,450,000.00 Dec-$4,200,000.00

The company projects cash collections a payments as follows:
Sales 10% cash, 30% collected current month, 70% month after sale

Cost of Goods Sold
Variable Cost 36% of sales

Fixed $300,000 per month incl $50,000 depreciation expense

Operating Expense
Variable Selling 10% of sales
Variable Admin 6% of sales

Fixed Selling and Admin expense $80,000 per month incl $10,000 depreciation

Variable costs are paid 70% in month incurred and 30% the following month

Fixed costs are paid monthly as they are incurred

In December an insurance payment of $20,000 is due

Accts Receivable - $860,000 of which $600,000 will be collected in Oct and the remainder in Nov

Accts Payable on Oct 1 is $400,000 and are expected to be paid in Oct

Cash on hand on Oct 1 is $600,000

Minimum cash is $100,000; the company borrows at $100,000 increments at 1% monthly

Prepare a cash budget for the month of October (only) based on the above

[wonderboy1212]

Powell Co. produces a flashlight that goes through four processes before
being transferred to finished goods. In the current month information for the pckg department
(the last department in its process cost system) is shown below:

Units $
Beginning inventory 60,000 units $75,000.00 cost
100% complete direct material $60,000 materials cost

20% complete conversion costs $15,000 conversion cost


Transferred in 600,000 units
Ending inventory 20,000 units
100% complete direct material
30% complete conversion


Transferred out to finished goods 640,000 units

Beginning finished goods 40,000 units $82,000.00
Ending finished goods 35,000 units

Costs for Current Month
Direct Material $660,000.00
Conversion Costs $538,900.00

Sold 500,000 units $5.00 each
Marketing and Admin Expense $1,000,000.00

Required
a. Indicate the number of equivalent units produced in the month
b.Indicate the cost per equivalent unit for labor and conversion
c. Prepare an income statement for Oct assuming that the company sold
the beginning finished goods inventory first, then the units produced in the current month
d.Indicate the value of the ending finished goods and ending work in process
e. If per unit costs ran at $2.05 each last period, comment on this period's performance

[wonderboy1212]

Limbaugh Co. uses a job order cost system in the production of unique test equipment for
oil drilling. Limbaugh planned for the following for the fiscal year:

Direct Labor $4,000,000.00
Overhead $8,000,000.00 applied on basis of direct labor cost
Direct Material $1,000,000.00


Limbaugh had one job in WIP at the beginning of the year
Job A 715
Direct Labor $300,000.00
Direct Material $480,000.00


Limbaugh had one job in finished goods at the beginning of the year:
Job A 634
Total Cost $600,000.00


During the year Limbaugh's actual costs were:
Direct Labor $4,100,000.00
Overhead $7,950,000.00
Direct Material $10,200,000.00


There was one job remaining in finished goods as of year end
Job A 796
Direct Labor $200,000.00
Direct Material $300,000.00


There were two jobs remaining in ending WIP
Job A 801
Direct Labor $50,000.00
Direct Material $72,000.00

Job A 806
Direct Labor $120,000.00
Direct Material $150,000.00


Required:
Calculate the applied overhead rate and use in determining
value of WIP, Finished Goods and Cost of Goods Sold

Indicate whether overhead was under or over applied and
dispose of amount in appropriate manner.

If sales for the year were $30,000,000 and operating expense was
$5,200,000, prepare an income statement for the year and indicate
the value of ending inventory on the balance sheet.

[Curlyben]

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