Reference no: EM132859374
Question 1 - Candyco's annual budget included $7500 in MOH and it expected to have 5000 direct labor hours (its cost driver). Actual results were as follows:
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1/1
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12/31
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Raw Materials
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$5200
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$6900
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WIP
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$7050
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$9100
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FG
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$4250
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$2100
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Candyco purchased $82,340 in ingredients and paid $132,750 in DL costs. Its factory workers worked 5100 hours during the year. Sales were $911,567 and SG&A costs were $18,562. What is an income statement for Candyco?
Question 2 - Given the following information, show all three methods to dispose of over- or under-applied MOH. CGS for the period was $95,000, using applied MOH of $15,600. Three months later, it was discovered that actual MOH was $17,550.
Ending Balance
RM $40,500
WIP $60,000
FG $120,000
Question 3 - Pieco makes pies. Given the following information, answer the questions below.
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January
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February
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March
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# pies produced
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6500
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5230
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5890
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Rent
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$4500
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$4500
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$4750
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Utilities
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$6,975
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$6,784.50
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$6,883.50
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Ingredients
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$16,250
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$13,075
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$14,725
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A. Create the cost equation for Pieco for March.
B. If Pieco's sales price is $15.60, create CFISes for each month above. Ignore taxes.
C. If Pieco wants to earn $47,750 after tax in April, and the tax rate is 35%, how many pies must it sell?
D. If Pieco expects to sell 1,000,000 pies in May, what is its expected after-tax income?
Question 4 - Bakeryco sells cakes and croissants. Its only constraint is total employee work hours of 300 per week. SFco would like to order 1240 croissants and pay $5.30 each for them. Given the information below, should Bakeryco take SFco's order?
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Cakes
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Croissants
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Usual Price
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$32
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$6.50
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VC
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$18.50
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$1.95
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Time required to make
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90 minutes
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3 minutes
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Current sales volume
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123 per week
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2,120 per week
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