Reference no: EM131212925
Ritz Company sells fine collectible statues and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping and Rand has determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this pool is the number of individual items that are inspected and shipped. The final cost pool is used for general operations and supervision of the department and the cost driver is the number of shipments. Information about the department is summarized below:
Cost Pool Total Costs Cost Driver Annual Activity
Packaging and shipping $162,300 Number of boxes shipped 21,200 boxes
Final inspection $199,400 Number of individual items shipped 99,400 items
General operations and supervision $83,700 Number of orders 9,700 orders
During the period, the Far East sales office generated 670 orders for a total of 6,100 items. These orders were shipped in 1,425 boxes. What amount of shipping department costs should be allocated to these sales?
|
What are the chronic illness trends of each country
: What is the incidence and prevalence of elderly consumers of long-term care in the United States as compared to your chosen developing country? How does each country expect these numbers to change in the next ten years?
|
|
Accounting entries to be recorded by lessor on transaction
: The cost of the equipment manufactured by Solitaire is $120,000 and the fair value is $190,008.49. Solitaire incurred initial direct costs of $50,000 associated with putting the lease deal together. Prepare all the necessary accounting entries to be ..
|
|
Requirements for accounting for investment trust funds
: Describe GASB requirements for accounting for Investment Trust Funds. Include (a) a discussion of when the use of investment trust funds is appropriate; (b) the investments to be included and excluded; (c) the basis at which investments are to be rep..
|
|
The summarizes the terms of lease entered
: The following summarizes the terms of a lease entered into between Dove Company (lessor) and Hawk Company (lessee) entered into on January 1, 2016: Explain the nature of this lease to Hawk. Prepare all of the necessary accounting entries in 2016 for..
|
|
What amount of shipping department costs
: Ritz Company sells fine collectible statues and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping and Rand h..
|
|
What contract rate would outsourcing pay off for seven seas
: Seven Seas Company manufactures 100 luxury yachts per month. Included in each yacht is a compact media center. Seven Seas manufactures the media center in-house, but is considering the possibility of outsourcing that function, in order to close down ..
|
|
Problems in the evaluation of foreign financial statements
: There are certain problems in the evaluation of foreign financial statements that restricts the smooth running of business operations. The accessibility of data is a major challenge where financial information difficult in many countries. Do you thin..
|
|
Absorption costing approach to cost-plus pricing
: Eckhart Company uses the absorption costing approach to cost-plus pricing as described in the text to set prices for its products. Based on budgeted sales of 67,000 units next year, the unit product cost of a particular product is $14.3. The company'..
|