ACCT 2251_SW4.1
ASSIGNMENT 5
JOHN O’BRIEN
Sachin Joseph Mathew
T00613502
P9-51B
a)
Variable cost per unit
Direct materials
Direct labour
Variable manufacturing overhead
variable selling and administrative expenses
variable cost per unit
Fixed cost per unit
fixed manufacturing overhead
Fixed selling and administrative
expenses
Fixed cost per unit
b)
Total
cost per
unit
Markup
Target
ROI
$
72.00
25%
$
18.00
c)
Target
selling
price
$
90.00
$
4.00
$
2.00
$
6.00
$
15.00
$
25.00
$
14.00
$
12.00
$
66.00
d)
If units produced = 800000
$
66.00
Variable cost per unit =
Fixed cost per unit
fixed manufacturing overhead
Fixed selling and administrative
expenses
Fixed cost per unit
$
5.00
$
2.50
$
7.50
P9-54B
a)
Per hour
total cost total
hours
per
hour
rate
Shop employees’ wages
and benefits
$
2500
36,000.00
$
14.40
Office employees’ wages
and benefits
$
2500
15,000.00
$
6.00
Overhead
$
2500
19,000.00
$
7.60
Profit
$
5.00
Labor Rate
$
33.00
b)
Material
loading
charges
Total
invoice
cost of
parts
Material
loading
percentage
Parts managers salary
and benefits
$
$
27%
20,000.00 75,000.00
Office employees’ wages
and benefits
$
$
13%
10,000.00 75,000.00
Overhead
$
$
20%
15,000.00 75,000.00
Profit
15%
Material loading percentage
75%
350
Alpine
+ 132 bike$= 482.00
c) Total cost for
P9-55B
a) The units should be transfer at total cost-plus opportunity cost, which in this case is $520
as it is the market price
b) Transfer price will change if cost increases.
P10-47B
a)
Litwin Industries
Sales Budget
For the year ended December 31, 2016
Plan
Expected Unit
sales
Unit selling
price
Total sales
1
2
760000
950000
$
7.60
$ 5,776,000.00
$
6.65
$ 6,317,500.00
b)
Litwin Industries
Production Budget
For the year ended December 31, 2016
Plan
1
2
Expected Unit
sales
760000
950000
Add: desired
ending finished
goods
90000
100000
850000
1050000
70000
70000
780000
980000
Total required
units
Less:
Beginning
finished goods
Required
Production
c)
Direct
materials
Direct Labor
Variable OH
Fixed OH
Total cost
Cost per unit
Plan 1
Plan 2
$ 1,560,000.00
$ 1,960,000.00
$ 1,170,000.00 $ 1,470,000.00
$ 390,000.00 $ 490,000.00
$
980,000.00
$ 4,100,000.00
$
5.26
$
980,000.00
$ 4,900,000.00
$
5.00
Plan 1
Plan 2
$ 3,994,871.79
$ 1,781,128.21
$ 4,750,000.00
$ 1,567,500.00
d)
Cost of goods
sold
Gross Profit
P10-55B
Kari Company
Cash budget
Four months ending April 30, 2016
January February
March
April
-$
31,800.00
-$
61,200.00
Cash sales
$
$
$
24,000.00 30,000.00 36,000.00
$
21,000.00
Credit
collections
$
6,400.00
$
20,000.00
Opening
Balance
$
-
-$
7,400.00
Add: Receipts
$
$
17,600.00 21,600.00
Total cash
$
$
$
30,400.00 40,200.00 25,800.00
-$
20,200.00
Less: Disbursements
Debit
payments
Cash
Balance
$
$
$
37,800.00 72,000.00 87,000.00
-$
7,400.00
-$
-$
31,800.00 61,200.00
Kari Company
Materials Purchasing Budget
Four months ending April 30, 2016
January February
March
April
17500
Material
Usage
10000
12500
15000
Add:
Desired
ending
inventory
2500
3000
3500
Total
12500
15500
18500
Less:
Opening
Inventory
2000
2500
3000
Total
purchase
needed
10500
13000
15500
Total
$
$
$
purchase 63,000.00 78,000.00 93,000.00
value
$
-
a)
b)
c)
d)
e)
f)
$76200
Receivables = 60% (40%*$60000) = $14400
Direct materials inventory = 20% (3500*5) =3500units=$21000
Purchases in February=$78000
Accounts payable in March = 40% of $93000=$37200
Cash Balance for January to March= ($63000)