Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March

Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March. Units Costs Beginning work in process inventory 1,000 Beginning work in process inventory Started 10,000 Direct materials $ 1,620 Ending work in process inventory 2,000 Conversion 3,936 $ 5,556 Status of ending work in process inventory Direct materials added 66,360 Materials—Percent complete 100 % Direct labor added 73,410 Conversion—Percent complete 25 % Overhead applied (140% of direct labor) 102,774 Total costs to account for $ 248,100 Ending work in process inventory $ 21,840 Prepare a process cost summary report for this company, showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method.

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 35,500 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $81,100 consisted of $57,400 of direct material costs and $23,700 of conversion cost. During the month, the forming department started 510,000 units. At the end of the month, the forming department had 51,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows: Beginning work in process inventory $ 81,100 Direct materials added during the month 1,842,915 Conversion added during the month 1,276,290 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming department. 3. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center)

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Sales Net Income Average Invested Assets Electronics $ 11,200,000 $ 620,500 $ 3,650,000 Sporting goods 7,500,000 882,000 4,900,000 1-a. Compute return on investment for each department. 1-b. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2-a. Assume a target income level of 11.9% of average invested assets. Compute residual income for each department. 2-b. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14.6% return on investment. Should the new investment opportunity be accepted?

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center)

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Sales Net Income Average Invested Assets Electronics $ 11,200,000 $ 620,500 $ 3,650,000 Sporting goods 7,500,000 882,000 4,900,000 1-a. Compute return on investment for each department. 1-b. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2-a. Assume a target income level of 11.9% of average invested assets. Compute residual income for each department. 2-b. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14.6% return on investment. Should the new investment opportunity be accepted?

Jansen Company reports the following for its ski department for the year 2015. All of its costs are direct, except as noted

Jansen Company reports the following for its ski department for the year 2015. All of its costs are direct, except as noted. Sales $ 600,000 Cost of goods sold 435,000 Salaries 114,000 ($25,200 is indirect) Utilities 14,400 ($5,100 is indirect) Depreciation 51,600 ($17,100 is indirect) Office expenses 25,400 (all indirect) 1. Prepare a departmental income statement for 2015. 2. Prepare a departmental contribution to overhead report for 2015.

After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate

After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate. During October, the company uses 12,000 hours of direct labor at a $190,800 total cost to produce 6,300 units of product. In November, the company uses 22,700 hours of direct labor at a $363,200 total cost to produce 6,700 units of product. (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months.

Solitaire Company’s fixed budget performance report for June follows. The $303,750 budgeted expenses include $251,100 variable expenses and

Solitaire Company’s fixed budget performance report for June follows. The $303,750 budgeted expenses include $251,100 variable expenses and $52,650 fixed expenses. Actual expenses include $60,050 fixed expenses. Fixed Budget Actual Results Variances Sales (in units) 8,100 10,500 Sales (in dollars) $ 405,000 $ 525,000 $ 120,000 F Total expenses 303,750 367,500 116,400 U Income from operations $ 153,900 $ 157,500 $ 3,600 F Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately.

Tyler Co. predicts the following unit sales for the next four months: April, 3,500 units; May, 4,500 units; June, 6,200 units; and July, 2,400

Tyler Co. predicts the following unit sales for the next four months: April, 3,500 units; May, 4,500 units; June, 6,200 units; and July, 2,400 units. The company’s policy is to maintain finished goods inventory equal to 20% of the next month’s sales. At the end of March, the company had 800 finished units on hand. Prepare a production budget for each of the months of April, May, and June.

An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the

An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $700 Second birthday: $700 Third birthday: $800 Fourth birthday: $800 Fifth birthday: $900 Sixth birthday: $900 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $150,000. If the relevant interest rate is 9 percent for the first six years and 6 percent for all subsequent years, is the policy worth buying?

Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to

Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $12,000 balance from your current credit card, which charges an annual rate of 18.6 percent, to a new credit card charging a rate of 9.2 percent. How much faster could you pay the loan off by making your planned monthly payments of $225 with the new card? What if there was a 2 percent fee charged on any balances transferred?