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Product Costing

Budgeting, Performance Planning, and Standard Costing

Problem 20-5A Preparation of a complete master budget Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2011. To prepare a master budget for January, February, and March of 2012, management gathers the following information. a

Med Max - activity based costing

Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Med Max sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Med Max that had cost Med Max $100 to buy fro

Analysis of data to drop a product line for Hayley and Associates.

Hayley and Associates is a public accounting firm that offers three types of services-audit, tax and consulting. The firm is concerned about the profitability of its consulting business and is considering dropping that line. If the consulting business is dropped, more tax work would be done. If consulting is dropped, all consult

Activity Based Costing

Discuss and illustrate the process of activity-based costing (ABC). Do you view ABC as an improvement over traditional methods? Explain.

Wiseman Ltd: advance costing

Wiseman Ltd, divides its customers into Gold Customers and Silver customers. The Company has one full-time customers representative per 1000 Gold customers and one full-time customer representative per 10,000 silver customers.Customer representatives receive salaries plus bonuses of 10 % of customer gross margin.

Costing: Work Progress at Concordia Corp.

See the attached file. 1) Concordia Corp shows the following information concerning the work in process at its plant: Beginning inventory was partially complete (materials are 100% complete:conversion costs are 60% complete) Started this month 180,000 units Transferred out,150,000 units En

Activity Based Costing

P4-5A (a-c) Hy and Lowe is a public firm that offers two primary services, auditing and tax return preparation. A controversy has developed between the partners of the two service lines as to who is contributing the greater amount to the bottom line. The area of contention is the assignment of overhead. The tax partners argu

Product Costing/ T-Accounts

Please see the attached problem. Conundrum Corporation manufacturers furniture. Due to a fire.... Problem 3-57 Flow of Manufacturing Costs; Incomplete data #4 should be $114,000

Valid Decisions in a Production Factory

"full costing as an approach where organizations goods and services are priced in other to reflect the true cost which is expected to include social and environmental cost". Question: How can a production factory make valid decisions given the differences in costing? After all, we must have accurate cost data in order to

standard costing system

Reed company uses a standard costing system. manufacturing overhead is applied to products based upon machine hours (MH). Use the following information to make the required calculations: standard mh allowed 3 mh/unit standard variable overhead rate $5/mh actual

Segment analysis; full costing

See attached for better format: 1) Computer Boutique sells computer equipment and home office furniture. Currently, the furniture product line takes up approximately 50% of the company's retail floor space. The president of Computer Boutique is trying to decide whether the company should continue offering furniture or just c

Activity Based Costing vs. Traditonal Costing

B Town Motors produces boat motors and is considering a shift to activity-based costing. Its controller is interested in using a recent order for 200 motors sold to Martin Sports to compare traditional costing wtih activity-based costing. The costs for this order consist of direct materials fo $60,000, purchased parts for $80

Cost Flow in a Process Costing Environment

Cost Flow in a Process Costing Environment 1) Juman Company makes magnets all of the same size and shape. The materials and costs flow through 2 departments: Mixing and Forming. In the Mixing Department, the metal is melted in huge vats. The fully mixed metal is then siphoned off to the Forming Department, where the

Product Costing Systems: Overhead Cost, Rate, & Allocation

Weld Canning company has a busy season lasting six months from September through February and a slack season lasting from March through August. Typical data for these seasons are as follows: Average monthly direct labors in a busy season = 15,000, in slack season = 5,000. Average monthly factory overhead costs = $180,000 in bu

Process Costing System

Weighted-Average Method Larsen Company manufactures car seats in its San Antonio plant. Each car seat passes through the Assembly Department and the Testing Department. This problem focuses on the Aseembly Department. The process-costing system at Larsen Company has a single direct-cost-category (direct materials) and a si

Exercises 5-11 through 5-18:

Summit Manufacturing, Inc. produces snow shovels.The selling price per snow shovel is $30. Costs involved in production are: Direct material $ 5 Direct labor 4 Variable manufacturing overhead 3 Total variable manufacturing costs per unit $ 12 Fixed manufacturing overhead per year $180,000 In addition, the comp

Implementing the Activity Based Costing (ABC) System

See the attached file. Jarme Company makes two products and is implementing an Activity Based Costing (ABC) system. Previously, all overhead had been applied on the basis of machine hours. The Company produces 100,000 units of product D and 5,000 units of product F. Cost Pool Driver and Level Cost in Pool Use of Driver by Pr


Problem Aunt Nicole's Cookies, Inc., prepares frozen gourmet cookies for shipment to upscale grocery stores as well as mailing to web and catalog customers. The company has two workstations, cooking and distribution. The cooking station is limited by the cooking time of the food. Distribution is limited by the speed of the wo

Allocating Costs to Jobs Using Activity-Based Costing

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $28 per hundred square feet. However, there is some question about whether the company is actually making any mone

Choosing an Activity-Based Costing System

9-39. Choosing an Activity-Based Costing System Pickle Motorcycles, Inc. (PMI), manufactures three motorcycle models: a cruising bike (Route 66), a street bike (Main Street), and a starter model (Alley Cat). Because of the different materials used, production processes for each model differ significantly in terms of machin

Process Costing: Compute equivalent units produced, transferred

A department of Jamestown Textiles produces cotton fabric. All direct materials are introduced at the start of the process, Coversion costs are incurred uniformly throughout the process. In April, there was no beginning inventory. Units started, completed, and transferred were 650,000. Units in process on April 30 were 220,0


Task is to prepare a 10-12 powerpoint presentation on the topic of costing. Specifically need assistance with the following: -explaining what needs to be done to project profits using the traditional income statement if sales were to increase 20% -explaining how and why it would be easier if the contrinution format were used

Scarborough Confectionery Company Boxes of Chocolates Cost

Scarborough Confectionery Company is a wholesale distributor of boxes of chocolates. The company services grocery, convenience and drug stores in the Toronto area. Existing Situation Small but steady growth in sales has been achieved by the company over the past years while candy prices have been increasing. The company is f

Activity-Based Costing: Palmer Company

Can you help me get started with this assignment? Palmer Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases, and cost allocation rates: Activity Cost Driver Cost Allocation Rate Machine Setup Number of setups $50.00 Material han

Absorbtion Costing vs. Variable Costing

What exactly is absorption costing vs. variable costing? In your opinion, describe whether you think overproducing is an ethical practice and why or why not. Include discussion of which stakeholders might react, and how they would react if they knew about this practice. Using the following data, calculate the difference betwee

Process Costing-Equivalalent Units Converison

Binding Company prints calendars. All direct materials are included at the inception of the printing process. There were 20,000 units in beginning inventory with a direct material cost of $1,000 and conversion cost of $3,760 in March. Direct materials totaled $26,000 for the month. Conversion costs were $20,000 Work-in-proce

Activity Based Costing

Pitney Corporation manufactures two types of transponders-no. 156 and no. 157-and applies manufacturing overhead to all units at the rate of $76.50 per machine hour. Production information follows. No. 156 No. 157 Anticipated Volume (units) 6,000 14,000 Direct Material Cos