ACCT 505 Managerial Accounting Entire Course

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$240,000 The Procurement Department provided the following supplier pricing: Supplier A price per hinge $11.00 Supplier B price per hinge $10.75 Supplier C price per hinge $10.50 The supplier pricing was obtained in response to a formal request for proposal (RFP). Procurement has determined these suppliers meet Globe’s technical specifications and quality requirements. If Globe stops producing the part internally, 10% of the fixed manufacturing overhead would be eliminated. Required: Prepare a make-or-buy analysis showing the annual advantage or disadvantage (in dollars) of accepting an outside supplier’s offer. Should the company buy the parts? If so, from which supplier? 3. (TCO E) Mesa Company produces a single product. Operating data for the company and its absorption costing income statement for the last year are presented below: Units in beginning inventory 2,000 Units produced 9,000 Units sold 10,000 Sales $100,000 Less cost of goods sold: Beginning inventory 12,000 Add cost of goods manufactured 54,000 Goods available for sale 66,000 Less ending inventory 6,000 Cost of goods sold 60,000 Gross margin 40,000 Less selling and admin. expenses 28,000 Net operating income $12,000 Variable manufacturing costs are $4 per unit. Fixed factory overhead totals $18,000 for the year. This overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold. Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements. 4. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of the White Sands Corporation for the just-completed year.
Sales 1,150 Raw materials inventory, beginning 15 Raw materials inventory, ending 40 Purchases of raw materials 150 Direct labor 250 Manufacturing overhead 300 Administrative expenses 500 Selling expenses 300 Work in process inventory, beginning 100 Work in process inventory, ending 150 Finished goods inventory, beginning 80 Finished goods inventory, ending 120 Use the above data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated? 1. (TCO F) Farmington 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. Work in process, beginning: Units in beginning work-in-process inventory 400 Materials costs $6,900 Conversion costs $2,500 Percentage complete for materials 80% Percentage complete for conversion 15% Units started into production during the month 6,000 Units transferred to the next department during the month 5,000 Materials costs added during the month $112,500
Page 1 and 2: ACCT 505 Managerial Accounting Enti
Page 3 and 4: Go to pages 170 and 171 and read Ca
Page 5 and 6: taxes on a company’s factory buil
Page 7 and 8: equals (Points : 6) sales - expense
Page 9 and 10: Fixed selling and admin $200,000 Re
Page 11 and 12: Devry ACCT 505 Week 6 Quiz latest 2
Page 13 and 14: Selling and Administrative $270,075
Page 15 and 16: life of the machinery. The producti
Page 17 and 18: Add cost of goods manufactured 54,0
Page 19: Estimated variable manufacturing ov
Page 23: 2. (TCO F) Memphis Corporation is p

ACCT 505 Managerial Accounting Entire Course

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