Reference no: EM131299838
Accounting Assessment
1. Ohio Corporation sells its product for $16 per unit and incurs variable costs of $10 per unit and total fixed costs of $12,000. What is Ohio Corporation's break-even point for sales of this product?
2. Arkansas Company provided the following information at the end of 2010:
Beginning balance in Work-In-Progress $ 300,000
Ending balance in Work-In-Progress 350,000
Beginning balance in Finished Goods 400,000
Ending balance in Finished Goods 350,000
Direct materials costs 1,000,000
Direct labor costs 2,000,000
Manufacturing overhead 2,000,000
Selling expenses 300,000
General and administrative expenses 200,000
Sales 8,000,000
Prepare an income statement for fiscal year 2010.
3. Process costing systems and job-order costing systems both produce information on the costs of producing a firm's products, but each system is most appropriate for certain kinds of approaches to production. Explain what approaches to production job-order costing are most appropriate, and explain why job-order costing is appropriate in those approaches to production?
4. Nevada Appliance Company uses a job-order costing system and allocates overhead based on the cost of the installer's time. Annual installer's time was estimated at the beginning of the year to be $400,000 for the year, and company overhead was estimated to be $200,000 for the year.
If an installation job requires parts costing $100 and an installer's time costs $200, what would be the total cost of the job in this job-costing system? In this case, why would using a predetermined overhead rate be better than assigning actual overhead costs to each installation job?