ACCT 505 Managerial Accounting Entire Course

Conversion costs added during the month
$210,300
Ending work in process:
Units in ending work-in-process inventory
1,200
Percentage complete for materials
60%
Percentage complete for conversion
30%
Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first
processing department.
2.
(TCO G) – (Ignore income taxes in this problem.) Tennessee Co. is considering the production of an exterior paint
that will require the purchase of new mixing machinery. The machinery will cost $700,000, is expected to have a
useful life of 12 years, and is expected to have a salvage value of $100,000 at the end of 12 years. The machinery
will also need a $40,000 overhaul at the end of Year 7. A $50,000 increase in working capital will be needed for this
investment project. The working capital will be released at the end of the 12 years. The new paint is expected to
generate net cash inflows of $120,000 per year for each of the 12 years. Tennessee’s discount rate is 14%.
Required:
a. What is the net present value of this investment opportunity?
b. Based on your answer to (a) above, should Tennessee go ahead with the new paint?
3. (TCO B) Winslow Corporation produces and sells a single product. Data concerning that product appear below.
Selling price per unit
$130.00
Variable expense per unit
$27.30
Fixed expense per month
$165,3
Required:
a) Determine the monthly break-even in unit sales. Show your work!
b) Determine the monthly break-even in dollar sales. Show your work!
1. (TCO F) Manchester, Inc. bases its predetermined overhead rate on the estimated machine hours for the
upcoming year. Data for the upcoming year appear below.
Estimated machine hours
85,000
Estimated variable manufacturing overhead
$5.55 per machine hour
Estimated total fixed manufacturing overhead
$951,888
Required:
Compute the company’s predetermined overhead rate.