DS Company: Accounting Calculations
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DS Company has identified the following cost pools and activity rates:
Activity Cost Pools Activity Rates
Supporting direct labor $4 per direct labor hour
Machine processing $3 per machine hour
Machine setups $30 per setup
Production orders $11 per order
Shipments $98 per shipment
Production sustaining $750 per product
Activity data have been supplied for the following products:
Total expected Activity
D130 S150
Direct labor hours 2,500 300
Machine hours 4,300 250
Machine setups 7 2
Production orders 3 2
Shipments 9 4
Production sustaining 2 1
Determine the total overhead cost that would be assigned to each of the products listed above in the activity based costing system: (show computations and details).
a. D130
b. S150
Statues Inc has the following sales budget for the second of the current year:
April May June Total
Budgeted sales $250,000 $340,000 $590,000 $1,180,000
From past experience, the company has learned that 10% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $150, 000, and March sales totaled $220,000.
For each of the following months, calculate the amount of projected cash collections: (show solutions and related details)
a. April
b. May
c. June
Valentino Company had the following budgeted sales over the last 4 months of the year:
Sales in Units
October 10,000
November 25,000
December 35,000
January 46,000
The company is now in the process of preparing a production budget for the fourth quarter. Past experience has shown that end of the month inventories of finished goods must equal 20% of the next month's sales. The inventory at the end of September is 2,000 units.
For each of the following months, calculate the number of units that need to be produced: (show computations and related details).
a. October
b. November
c. December
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This solution provides assistance with accounting calculations for DS Company.
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