Hudek inc a manufacturing corporation

Accounting Homework--Need Answers Within The NEXT HOUR

Management of Modugno Corporation is considering whether to purchase a new model 370 machine costing $464,000 or a new model 240 machine costing $405,000 to replace a machine that was purchased 10 years ago for $439,000. The old machine was used to make product M25A until it broke down last week. Unfortunately, the old machine cannot be repaired.

Management has decided to buy the new model 240 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product M25A.

Management also considered, but rejected, the alternative of simply dropping product M25A. If that were done, instead of investing $405,000 in the new machine, the money could be invested in a project that would return a total of $456,000.

In making the decision to invest in the model 240 machine, the opportunity cost was:

$405,000

$456,000

$464,000

$439,000

Salvadore Inc., a local retailer, has provided the following data for the month of September:

Merchandise inventory, beginning balance

$44,500

Merchandise inventory, ending balance

$43,200

Sales

$263,100

Purchases of merchandise inventory

$137,600

Selling expense

$17,000

Administrative expense

$60,900

The cost of goods sold for September was:

$137,600

$136,300

$215,500

$138,900

The following costs were incurred in September:

Direct materials

$42,200

Direct labor

$32,800

Manufacturing overhead

$25,400

Selling expenses

$18,800

Administrative expenses

$40,200

Conversion costs during the month totaled:

$58,200

$75,000

$159,400

$67,600

Management of Lewallen Corporation has asked your help as an intern in preparing some key reports for September. Direct materials cost was $61,000, direct labor cost was $47,000, and manufacturing overhead was $75,000. Selling expense was $19,000 and administrative expense was $36,000.

The conversion cost for September was:

$122,000

$141,000

$183,000

$116,000

Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $214.90 per unit.

Sales volume (units)

8,100

10,020

Cost of sales

$664,200

$821,640

Selling and administrative costs

$613,100

$649,580

The best estimate of the total monthly fixed cost is:

$459,200

$1,471,220

$1,277,300

$1,323,260

Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production volume

9,500

units

11,000

units

Direct materials

$575,700

$666,600

Direct labor

$156,750

$181,500

Manufacturing overhead

$1,009,000

$1,032,400

The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.)

$860,800

$868,300

$857,800

$863,800

Nikkel Corporation, a merchandising company, reported the following results for July:

Sales

$447,000

Cost of goods sold (all variable)

$170,500

Total variable selling expense

$20,100

Total fixed selling expense

$21,600

Total variable administrative expense

$8,500

Total fixed administrative expense

$31,300

The gross margin for July is:

$394,100

$276,500

$195,000

$247,900

Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production volume

15,300

units

17,000

units

Direct materials

$931,770

$1,035,300

Direct labor

$344,250

$382,500

Manufacturing overhead

$1,011,500

$1,036,150

The best estimate of the total variable manufacturing cost per unit is: (Do not round intermediate calculations.)

$87.20

$83.40

$89.55

$97.90

A soft drink bottler incurred the following factory utility cost: $3,811 for 1,050 cases bottled and $3,878 for 1,400 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

$3.63

$0.19

$2.77

$2.72

Stelmack Corporation, a manufacturing Corporation, has provided data concerning its operations for September. The beginning balance in the raw materials account was $20,000 and the ending balance was $27,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $53,000, of which $3,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was:

$56,000

$53,000

$70,000

$63,000

Soledad Corporation had $36,000 of raw materials on hand on December 1. During the month, the Corporation purchased an additional $71,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

credit to Raw Materials of $71,000

debit to Raw Materials of $71,000

credit to Raw Materials of $107,000

debit to Raw Materials of $107,000

Sirmons Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 70,000 labor-hours. The estimated variable manufacturing overhead was $9.93 per labor-hour and the estimated total fixed manufacturing overhead was $1,649,200. The actual labor-hours for the year turned out to be 74,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

$32.22

$9.93

$33.49

$23.56

At the beginning of December, Sneeden Corporation had $32,000 of raw materials on hand. During the month, the Corporation purchased an additional $71,000 of raw materials. During December, $75,000 of raw materials were requisitioned from the storeroom for use in production. The credits entered in the Raw Materials account during the month of December total:

$32,000

$75,000

$71,000

$103,000

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

overapplied by $15,000

underapplied by $15,000

overapplied by $3,000

underapplied by $3,000

Brusveen Corporation applies manufacturing overhead to jobs on the basis of direct labor-hours. The following information relates to Brusveen for last year: icture What was Brusveen's underapplied or overapplied overhead for last year?

$4,000 underapplied

$8,880 underapplied

$8,880 overapplied

$9,000 underapplied

Jameson Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: icture Jameson estimates that 24,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:

$2.00

$2.79

$3.00

$4.00

Kaleohano Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $62,000 and the total of the credits to the account was $73,000. Which of the following statements is true?

Manufacturing overhead for the month was underapplied by $11,000.

Manufacturing overhead applied to Work in Process for the month was $62,000.

Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $73,000.

Actual manufacturing overhead for the month was $62,000.

Hudek Inc., a manufacturing Corporation, has provided the following data for the month of July. The balance in the Work in Process inventory account was $20,000 at the beginning of the month and $10,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $50,000 and direct labor cost of $22,000. The actual manufacturing overhead cost incurred was $58,000. The manufacturing overhead cost applied to Work in Process was $56,000. The cost of goods manufactured for July was:

$138,000

$140,000

$130,000

$128,000

Compute the amount of raw materials used during August if $25,000 of raw materials were purchased during the month and the inventories were as follows: icture

$16,000

$19,000

$23,000

$27,000

The following information relates to the Blending Department of Kedakai Products Corporation for the month of May. Kedakai uses a weighted-average process costing system. icture

What are the Blending Department's equivalent units related to materials for May?

260,000

277,000

290,000

307,000

Dodd Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: icture A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: icture The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

What are the equivalent units for conversion costs for the month in the first processing department?

5,800

5,030

4,700

330

Yoder Corporation uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month: icture

How many units were completed and transferred to the next department during the month?

750,000 units

790,000 units

760,000 units

740,000 units

Larner Corporation uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: icture According to the company's records, the conversion cost in beginning work in process inventory was $68,064 at the beginning of June. Additional conversion costs of $585,324 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

$6.892

$6.806

$5.575

$7.090

Baker Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

94,700

101,900

98,000

92,000

Ibarra Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: icture Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

What are the equivalent units for conversion costs for the month in the first processing department?

7,070

6,800

8,600

270

Kuzuck Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: icture Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

The total cost transferred from the first processing department to the next processing department during the month is closest to:

$562,368

$543,200

$527,219

$536,200

Valley Manufacturing Corporation's beginning work in process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $30,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:

$255,000

$270,000

$240,000

$285,000

Acklac Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: icture A total of 9,200 units were started and 8,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: icture The ending inventory was 75% complete with respect to materials and 15% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

What are the equivalent units for conversion costs for the month in the first processing department?

8,300

240

9,900

8,540

Kuzuck Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: icture Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

$28,118

$15,981

$35,148

$5,272