BUSINESS COLLEGE

Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs 2,900,000 Total overhead 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2.

Answers

Answer 1

Answer:

See answers below

Explanation:

a. Direct materials & supplies $40,000 = $40,000 × 110%

= $44,000 × 20,000/25,000

= $35,200

Employee costs = $2,900,000 × 105%

= $3,045,000 × 20,000/25,000

= $2,346,000

Variable overhead = $600,000 × 100%

= $600,000 × 20,000/25000

= $480,000

Fixed overhead = $700,000 × 105%

= $735,000

b. Total costs per unit year 2 =

$3,596,000 / 20,000

= $179.81

Answer 2

Answer:

Answer:

Employee costs for year 2 should be $2,436,000.

Total costs in year 2:

$35,200+$2,436,000+$480,000+$735,000=$3,686,200

b) Total costs per billable hour for year 2=$3,686,200/20000=$184.31

Explanation:

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Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accounts had applied overhead costs of $59,300 and $38,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2020. During the year, manufacturing overhead costs of $92,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $97,300 at the end of 2020. If the under or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be allocated to the Finished Goods Inventory

Answers

Answer:

$2069

Explanation:

Given

Applied overhead costs of Goods sold = $59,300

Applied overhead cost of finished goods = $38,000

Overhead Balance = $97,300

Overhead Cost = $92,000

Overapplied Overhead = Overhead Balance - Overhead Cost

Overapplied Overhead = $97,300 - $92,000

Overapplied Overhead = $5,300

Allocated Amount = (Applied Overhead * Finished Goods /(Overapplied Overhead)

Allocated Amount = ($5,300 * $38,000) ($59,300 + $38,000)

Allocated Amount = ($5,300 * 38,000) (97,300)

Allocated Amount = $2069

Answer:

The over applied overhead which is allocated to finished goods inventory is $ 1,488.54

Explanation:

Determination of over or under applied overhead

Applied Manufacturing overhead $ 97,300

Actual factory overhead incurred $ 92,000

Overapplied manufacturing overhead $ 5,300

Allocation of over applied overhead is on basis of values in Cost of goods sold and Finished goods inventory.

Cost of goods Sold $ 59,300

Finished Goods inventory $ 38,000

Sum of COGS and Inventory $ 97.300

Over applied Overhead $ 5,300

Allocation Finished Goods inventory

$38,000/ $ 97,300 * $ 5,300 = $ 1,488,54

Allocation Cost of Goods sold

$ 59.300/ $ 97,300 * $ 5,300 = $ 3.811.46

During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 53 $ 45 $ 2,385 Apr. 7 Purchase 133 47 6,251 Jul. 16 Purchase 203 50 10,150 Oct. 6 Purchase 113 51 5,763 502 $ 24,549 For the entire year, the company sells 433 units of inventory for $63 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit

Answers

By using the FIFO Method the Closing inventory is $3,519. The cost of goods sold is $18,786. The sales revenue is $27,279, and the gross profit is $8,493.

Closing Inventory:

Ending inventory = 69 units * $51 (unit cost from the last purchase) = $3,519

Cost of Goods Sold:

The cost of goods sold will be the cost of the inventory that was sold during the year. Since the inventory is allocated based on the FIFO method, we start by using the units from the beginning inventory, then from the April 7 purchase, and finally from the July 16 purchase.

a. From the beginning inventory (53 units):

Cost of goods sold = 53 units * $45 (unit cost from the beginning inventory) = $2,385

b. From the April 7 purchase (133 units):

Cost of goods sold = 133 units * $47 (unit cost from the April 7 purchase) = $6,251

c. From the July 16 purchase (247 units):

Since the total number of units from the July 16 purchase (203 units) is greater than the remaining units needed (433 - 53 - 133 = 247 units), we will use all the units from this purchase.

Cost of goods sold = 203 units * $50 (unit cost from the July 16 purchase) = $10,150

Total cost of goods sold = $2,385 + $6,251 + $10,150 = $18,786

Sales Revenue:

Sales revenue = 433 units * $63 (selling price) = $27,279

Gross Profit:

Gross profit = Sales revenue - Cost of goods sold

Gross profit = $27,279 - $18,786 = $8,493

Therefore, using the FIFO method, the ending inventory is $3,519, the cost of goods sold is $18,786, the sales revenue is $27,279, and the gross profit is $8,493.

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Should the government be able to limit/regulate religious services? Explain.

Answers

the government can impose restrictions on a religious belief or practice, as long as the law in question applies to everyone and does not target a specific religion or religious practice.

Question 2 Pluto has $100 to spend and his preferences are represented by the quasi-linear utility function U (2,m) = 10x-1/2x^2+m where x is the amount of pizza he eats and m is the amount of money he spends on other stuff. (a) What is Pluto's demand curve for pizza? (b) How much consumer surplus does Pluto get when the price of pizza is $5? Illustrate the calculation of consumer surplus with a diagram. (b) What is Pluto's utility if the price of pizza is $5? (c) Suppose that Pluto is uanble to purchase pizza. What is his utility? What is the gain in utility when he has the opportunity to buy pizza at a price of $5?

Answers

Answer:

(a) see curve on attachment

(bi) consumer surplus= $4

(bii) see diagram on attachment

(biii) utility = 2

(ci) u(0,1) = 1

Explanation:

ak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Balance on 3/1 Job 33 $ 7,500 Job 34 6,000 $ 13,500 Source documents revealed the following during March: Materials Requisitions Forms Labor Time Tickets Status of Job at Month-End Job 33 $ 3,500 $ 6,500 Completed and sold Job 34 6,000 7,800 Completed, but not sold Job 35 4,200 3,250 In process Indirect 1,300 2,140 $ 15,000 $ 19,690 The company applies overhead to products at a rate of 150 percent of direct labor cost. Required: 1. Compute the cost of Jobs 33, 34, and 35 at the end of the month. 2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.

Answers

Answer:

Job 33 $ 27250

Job 34 $ 31500

Job 35 $ 12325

Cost of Goods Sold Job 33 $ 27250

Finished Goods Inventory Job 34 $ 31500

Work in Process Inventory Job 35 $ 12325

Explanation:

Work in Process Balance on 3/1

Job 33 $ 7,500

Job 34 6,000

Total $ 13,500

Job 33

Direct Materials $3500

Direct Labor 6500

Overheads (150%) 9750

Add Opening WIP 7500

Total Cost $ 27250

We add the Direct Material Direct Labor and Mfg overheads with the opening balance of WIP to get the total cost of given jobs.

Job 34

Direct Materials $6000

Direct Labor 7800

Overheads (150%) 11700

Add Opening WIP 6000

Total Cost $ 31500

Job 35

Direct Materials $4200

Direct Labor 3250

Overheads (150%) 4875

Add Opening WIP ------

Total Cost $ 12325

Cost of Goods Sold Job 33 (given) $ 27250

Finished Goods Inventory Job 34 (given) $ 31500

Work in Process Inventory Job 35(given)$ 12325

It is given in the question that Job 34 is transferred to Finished Goods , Job 35 is still in process and Job 33 is cost of goods sold.

Final answer:

By accounting for beginning balances, cost of materials, labor, and overheads, the costs of Jobs 33, 34, and 35 at end of the month are $27,250, $31,500 and $12,325 respectively. The Work in Process Inventory is $12,325, Finished Goods Inventory is $31,500 and Cost of Goods Sold is $27,250.

Explanation:

To calculate the cost of each job at Oak Creek Furniture Factory (OCFF), we first need to consider all cost factors. These include the beginning balances, additional materials requisitioned, labor hours, and overheads. Job overheads for OCFF are applied as 150 percent of direct labor cost.

Job 33: The initial cost was $7,500. During March, materials costing $3,500 and labor cost of $6,500 were added, making a total of $10,000. Applying the overhead calculation, we find that overheads amount to $6,500 * 1.5 = $9,750. The total cost for job 33 is therefore $7,500 (beginning balance) + $10,000 (material and labor costs) + $9,750 (overhead) = $27,250.

Job 34: Initial cost was $6,000. Material and labor costs for March amount to $6,000 and $7,800 respectively, summing up to $13,800. The overhead equals $7,800 * 1.5 = $11,700. The total cost for job 34 is accordingly $6,000 (beginning balance) + $13,800 (material and labor costs) + $11,700 (overhead) = $31,500.

In regard of Job 35, which is still in progress, only the cost of materials $4,200 and labor $3,250 have been added, totalling $7,450. Calculating overheads, we get $3,250 * 1.5 = $4,875. Therefore, the cost so far for job 35 is $7,450 (material and labor costs) + $4,875 (overhead) = $12,325.

For the balance of the Work in Process Inventory, we just include the cost of Job 35, which isn't finished yet: $12,325.

The Finished Goods Inventory includes the cost of Job 34 which is completed but not sold: $31,500.

Cost of Goods Sold consists of completed and sold jobs, in this case only Job 33: $27,250.

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15–1. Undue Influence. Juan is an elderly man who lives with his nephew, Samuel. Juan is totally dependent on Samuel’s support. Samuel tells Juan that unless he transfers a tract of land he owns to Samuel for a price 35 percent below its market value, Samuel will no longer support and take care of him. Juan enters into the contract. Discuss fully whether Juan can set aside this contract.

Answers

Answer: It is Voidable

Explanation:

Samuel took advantage of his fiduciary responsibility is taking care of Juan to unfairly influence him to sell him a piece of land at a price 35% below market price. Juan as an old man who is TOTALLY dependant on Samuel, felt he had no choice but to agree as failure to do so will lead to Samuel no longer taking care of him and this could be quite disadvantageous to him.

There was UNDUE INFLUENCE and Coercion in this scenario which means Voluntary consent was lacking.

For this reason, the contract can be voided.

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