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    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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    Solution Summary

    This solution provides assistance with accounting calculations for DS Company.