Calculate the units still in WIP ending inventory.

Question #1
EZ Ryder Motorcycles is considering whether or not to expand into Germany. If the price of gas increases, the company expects more interest in fuel-efficient transportation such as motorcycles. The company is, therefore, considering setting up a motorcycle assembly plant on the outskirts of Berlin.
The CFO expects to convert an existing building to accommodate motorcycle production and has a cost estimate of \$850,000. Workers will need trained, at an expected cost of \$65,000. The additional cost to organize the business and to establish relationships is estimated to be \$150,000. The CEO has instructed the sales force to project the profits for this venture. The estimated sales revenue without considering any of the above expenses is \$1,624,000.
Decide whether or not EZ Ryder should expand into Germany. Use a simple cost-benefit analysis.

Question #2
Auto USA spent \$300 million in total to 50,000 cars this year. The \$300 million breaks down as follows: \$50 million in fixed costs and \$5,000 of variable costs to produce each car. Next year it plans to produce 60,000 cars.
a) Indicate the current average cost per car this year.
b) Assuming the fixed costs are appropriate for a relevant range up to 65,000 units, what is the total forecasted cost to produce the 60,000 cars?
c) What will the forecasted average cost per car be for the upcoming year?
d) Calculate the cost of goods manufactured.
Now…..presume there was a beginning WIP inventory of \$5000 for one specific part used in the production process. Additional information you will need for item d) is:
Component Amount
Direct materials used \$24000
Direct labor used \$9000
Ending WIP inventory \$4000

Question #3
LT Furniture makes sofas, loveseats, and recliners. The company allocates manufacturing overhead based on direct labor hours. The CFO has estimated a total of \$2 million in manufacturing overhead for the upcoming year. This is based on an estimated 40,000 direct labor hours for the year.
LT has elected to use job costing for most of their orders and Job 310 is for a batch of 10 recliners. The direct materials below were requisitioned for this job.
• Lumber  10 units at \$30 per unit
• Padding  20 yards at \$20 per yard
• Upholstery fabric  60 yards at \$25 per yard, sourced from a local manufacturer
Labor time records show the following employees worked on Job 310:
• Jessee Slothower: 10 hours at \$12 per hour
• Becky Wilken: 15 hours at \$18 per hour
• Chip Lathrop: 12 hours at \$15 per hour

a) Compute the company’s predetermined overhead rate
b) Compute the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job 310’s job cost record sheet.
c) Compute the total cost of Job 310, as well as the cost of each recliner produced in Job 310.

Question #4
Indy Auto Parts has a seat-manufacturing department that uses ABC costing. The activity allocation rates are as follows:
• Machining # of machine hours \$30 per machine hour
• Assembling # of parts \$.50 per part (fifty cents)
• Packaging # of finished seats \$.90 per finished seat
Suppose Ford has asked for a bid on 50,000 baby seats that would be installed as an option on some Ford vehicles. Each seat has 20 parts and the DM cost per seat is \$11. The job would require 10,000 direct labor hours at a labor wage rate of \$25 per hour. The company will use 400 machine hours to fabricate some of the parts required for the seats.
a) Compute the total cost of producing and packaging 50,000 baby seats. Also – what is the average cost per seat?
b) Indy will add a 30% markup to the total cost. What price will the company bid for the Ford order?
c) Suppose that instead of using ABC, the company uses standard costing. The manufacturing overhead is a plant wide rate of \$65 per direct labor hour. The baby seat order will require 10,000 direct labor hours. What would the total cost of the baby seats be under this system? What is the average cost per seat? What price will the company now bid for the Ford order?

See also  How much will ABC Corp owe H-Town Hotel under the attrition clause if they have 35 attendees, each staying both nights?

Question #5
A Tile company produces ceramic tiles in two sequential production departments – 1) Tile Forming and 2) Tile Finishing.
Information for the Tile Forming division for the month of May is as follows:
Component Units Notes
Beg WIP 2,000 units
Started in production 18,000 units
Completed and transferred 16,000 units
End WIP 4,000 units 25% complete to direct materials; 55% complete for conversion costs

Component Costs Notes
Beg WIP \$4,800 (\$800 is DM and \$4000 is conversion)
Direct materials used in May \$6,000
Conversion costs incurred in May \$32,400

Utilizing process costing, complete the following:
a) Calculate the units completed and transferred out.
b) Calculate the units still in WIP ending inventory.
c) What journal entries are needed at month-end to transfer the costs to the next department?

Question #6
As the new manager of a local fitness club, you have been studying the club’s financial data. You would like to determine how the clubs costs behave in order to make accurate predictions for next year. Here is the information that you found for the last six months:
Month Club Memberships Total Operating Cost Avg. Operating Cost
July 450 \$8,900 \$19.78
August 480 \$9,800 \$20.42
September 500 \$10,100 \$20.20
October 550 \$10,150 \$18.45
November 560 \$10,500 \$18.75
December 525 \$10,200 \$19.43

a) Use the high-low method to determine the club’s monthly operating cost equation.
b) Use your answer above to predict total monthly operating costs if the club has 600 members.
c) Construct a basic traditional income statement for JULY. Assume your cost equation that you previously came up with is accurate for your income statement preparation. The club charges members \$30 per month for unlimited access to the facility.
d) Construct a contribution margin income statement for the month of JULY as well.

Question #7
Fleet Foot buys hiking socks for \$6 per pair and resells them at \$10 a pair. Management budgets monthly fixed expenses of \$10,000 for any sales volume between 0 and 12,000 pairs.
a) Use the data above to determine the breakeven point in units.
b) Use the contribution margin ratio approach (short-cut) to compute the breakeven point in sales revenue.
c) If Fleet Foot desires a \$14,000 operating income, what are the monthly sales in units needed to hit this desired level?
d) Assume Fleet Foot has been selling 8,000 pairs of socks per month. What is the current margin of safety in units? In sales dollars?

Question #8
Aziz produces Standard and Deluxe sunglasses. A standard pair sells for \$40 and has variable expenses of \$16. The Deluxe sunglasses sell at \$30 a pair and have variable expenses of \$21. The company only has 15,000 machine hours that they can produce both standard and deluxe models. In one hour, Aziz can produce 70 pairs of standard glasses OR 30 pairs of the deluxe model.
a) Which model would you suggest Aziz should emphasize?
b) From the information given, can you determine how many of each type of sunglasses the company should make?

Question #9
Explain the steps a company will go through to complete a budget process. (Hint: We start with SALES FORECASTS).
a) Complete the sales budget, including a separate section that details the type of sales made (Cash/Credit). The selling price is \$14. Use the following information:
Month Expected Unit Sales
January 100,000
February 110,000
March 115,000

b) Prepare the 2nd step of the budget process presuming the company would like to maintain an ending stock of finished pillows equal to 20% of the next month’s sales. Sales in units are the same as in a) above. April has a projected unit sales figure of 120,000 units.

Question #10
Sonoma is considering investing in a solar paneling roof for one of its large distribution facilities. The investment will cost \$9,000,000. It is expected to last 6 years and has no salvage value. The company expects the yearly utility savings to increase over time as follows:
Year 1 \$1,000,000
Year 2 \$1,500,000
Year 3 \$2,000,000
Year 4 \$2,500,000
Year 5 \$3,500,000
Year 6 \$4,500,000
In screening their projects, the company uses the payback period and the Accounting Rate of Return equal to at least 10%. Any potential investments that DO NOT hit BOTH criteria are immediately rejected.
a) Calculate the payback period for the solar panels.
b) Calculate the ARR for the solar panel project.
c) Discuss whether the company should consider the project or reject the project.

Custompaper.help is an academic writing platform that provides students and professionals with quality services to ease their assignment challenges. With a wide range of services, the platform has become one of the leading academic writing service providers in the market due to its reliability and affordability. Below, we shall discuss some of the services which Custompaper.help provides:

Essay Writing Service
The essay writing service provides customers with quality essays on any subject or topic they requested within a given deadline. The writers at custompaper are experts in their respective fields, and they ensure customer satisfaction by producing original content with thorough research involved backed up with strong evidence from reliable sources available online or offline. All essays come with free plagiarism reports as well as revisions if needed so that customers can trust that they are getting high-quality work for their money’s worth.

See also  Write a reflective essay to critically evaluate the usefulness of change management models and recommend one specific model to support the strategic option identified in Task 2.

Research Paper Writing Service
This is another popular service offered by custom paper help wherein customers are assisted in conducting research papers according to their needs and requirements within specified deadlines. Writers at custom paper help have vast knowledge about various topics belonging to different disciplines such as Management, Arts & Humanities, History etc., allowing them to craft impeccable research papers every time regardless of the complexity or urgency level requested by customers. Additionally, all our research papers come along with proper citation formats which ensures customer’s safety when it comes to plagiarism issues while also helping them save time on formatting procedures thus improving overall efficiency even further!

Dissertation Writing Service
CustomPaperHelp also offers dissertation writing assistance for those who need it most – students preparing for graduation or professionals wanting to further refine their skills through higher education levels such as Master/PhD degrees etc, Our team of writers consists of experienced individuals having Master’s/PhD degrees themselves so you can rest assured that your dissertation will be handled expertly from the start till the end! Furthermore, we offer unlimited revisions until your complete satisfaction is achieved, along with regular checkups being done throughout the process just so everything goes according to course without any hiccups!

If you already have written an essay but want professional feedback before submitting it, then CustomPaperHelp also offers editing & proofreading services which helps in identifying & rectifying errors present in assignments like grammar mistakes, spelling mistakes, punctuation problems etc., thereby ensuring top-notch quality work, before submission takes place! We understand how important accuracy & consistency are when it comes to grading systems used at universities nowadays, so taking extra care during this phase becomes absolutely essential if good grades are desired afterward!

Coursework Help
For those who find coursework difficult due to complications of being quite technical in nature; CustomPaperHelp extends its support here too, by providing quality solutions every single time – starting from understanding concepts properly up until composing flawless answers following university guidelines closely enough making sure no loopholes remain whatsoever! Whether it’s related math problem-solving algorithms or lengthy home assignments – our expert panel has got you covered from head-to-toe leaving no stone unturned during this very crucial stage since final grades depend largely upon the success rate achieved here successfully!

Assignment Help
Assignments form an integral part of getting better scores & ultimately, a degree itself (in case pursuing a masters/PhD) – something only possible if precision is made a priority right away; otherwise, chances of failure increase exponentially over a time period detrimentally affecting performance evaluation systems later down road drastically hence stressing timely importance completion prior commencement other operations associated same project altogether consistently meeting high standards expected each situation respectively! Here too, CustomPaperHelp presents comprehensive solution package exceeding expectations beyond point offering optimal values therein ensuring maximum satisfaction reached under circumstances prevailing accordingly without fail…proving once more why people trust us implicitly without second thought whatsoever!!

Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Custom Paper Help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

Custom Paper Help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essay Writing Services

At Custom Paper Help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.