Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Managerial Accounting Group Case 2

14/08/2020 Client: anasa Deadline: 24 Hours

    


ACC 601 Managerial Accounting Group Case 2 (100 points) 


  


Instructions: 


 


1. As a group, complete the following activities in good form. Use excel or 


 


word only. Provide all supporting calculations to show how you arrived at 


 


your numbers 


 


2. Add only the names of group members who participated in the completion 


 


of this assignment. 


 


3. Submit only one copy of your completed work via Moodle. Do not send it to 


 


me by email. 


 


4. Due: No later than the last day of Module 4. Please note that your professor 


 


has the right to change the due date of this assignment. 


 


Part A: Fixed and Variable Cost 


Stuart Manufacturing produces metal picture frames. The company's income statements for the last two years are given below: 


 


Units sold................................................... Sales........................................................... Cost of goods sold ..................................... Gross margin ............................................. Selling and administrative expense ........... Net operating income ................................ 




Last year 50,000 $800,000 550,000 250,000 150,000 $100,000 




This year 70,000 $1,120,000 710,000 410,000 190,000 $ 220,000 


 


The company has no beginning or ending inventories. 


Required: 


 



  1. Estimate the company's total variable cost per unit and its total fixed costs per year. (Remember that this is a manufacturing firm.)

     

  2. Compute the company's contribution margin for this year.

     


  


Part B: Cost-Volume-Profit Analysis 


Belli-Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: 


 


Sales................................... Variable expenses.............. Contribution margin .......... Fixed expenses .................. Net operating income ........ 




$540,000 360,000 180,000 120,000 


$ 60,000 


 


The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories. 


Required: 



  1. Given the present situation, compute

     

    1. The break-even sales in kilograms.

       

    2. The break-even sales in dollars.

       

    3. The sales in kilograms that would be required to produce net operating income of

      $90,000.

       

    4. The margin of safety in dollars.

       



  2. An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Belli-Pitt has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease.

     

    1. Should the company choose the lease or the royalty plan?

       

    2. Under the royalty plan compute break-even point in kilograms.

       

    3. Under the royalty plan compute break-even point in dollars.

       

    4. Under the royalty plan determine the sales in kilograms that would be required to

      produce net operating income of $90,000.

       




  


Part C: Relevant Cost/Special Order 


Gottshall Inc. makes a range of products. The company's predetermined overhead rate is $19 per direct labor-hour, which was calculated using the following budgeted data: 


 


Variable manufacturing overhead ....... Fixed manufacturing overhead ............ Direct labor-hours................................ 




$225,000 $630,000 45,000 


 


Component P0 is used in one of the company’s products. The unit cost of the component according to the company’s cost accounting system is determined as follows: 


 


Direct materials ......................................... Direct labor................................................ Manufacturing overhead applied............... Unit product cost ....................................... 




$21.00 40.80 32.30 


$94.10 


 


An outside supplier has offered to supply component P0 for $78 each. The outside supplier is known for quality and reliability. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by this decision. Gottshall chronically has idle capacity. 


Required: 


Is the offer from the outside supplier financially attractive? Why? 


  


Part D: Relevant Cost/Make or Buy Decision 


Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 7,000 units of the part that are needed every year. 


 


Direct materials.......................................... Direct labor ................................................ Variable overhead ...................................... Supervisor’s salary..................................... Depreciation of special equipment ............ Allocated general overhead........................ 




Per Unit $8.70 $2.70 $3.30 $1.90 $1.80 $5.50 


 


An outside supplier has offered to make the part and sell it to the company for $21.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $6,000 of these allocated general overhead costs would be avoided. 


Required: 



  1. Prepare a report that shows the effect on the company's total net operating income of buying part U67 from the supplier rather than continuing to make it inside the company.

     

  2. Which alternative should the company choose?

     


  


Part E: Relevant Cost/Sell or Process Further 


Farrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into end product X. Intermediate product B can be further processed into end product Y. The common input is purchased in batches that cost $36 each and the cost of processing a batch to produce intermediate products A and B is $15. Intermediate product A can be sold as is for $21 or processed further for $14 to make end product X that is sold for $32. Intermediate product B can be sold as is for $44 or processed further for $28 to make end product Y that is sold for $64. 


Required: 



  1. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of the common input into the end products X and Y? Show your work!

     

  2. Should each of the intermediate products, A and B, be sold as is or processed further into an end product? Explain.

     


Part F: Relevant Cost/Dropping a Product 


The management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and has considered discontinuing it on several occasions. Data from the company's accounting system appear below: 


 


Sales ................................................................ Variable expenses............................................ Fixed manufacturing expenses ........................ Fixed selling and administrative expenses ...... 




$150,000 $72,000 $50,000 $33,000 


 


In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued. 


A. According to the company's accounting system, what is the net operating income earned by product V86O? 


B. What would be the effect on the company's overall net operating income if product V86O were dropped? 

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Essay Writing Help
Engineering Guru
Top Essay Tutor
Writer Writer Name Offer Chat
Essay Writing Help

ONLINE

Essay Writing Help

I can provide plagiarism-free work for you within your given deadline. My professional writing career started around 5 years back with a local writing company in my city where I have produced 1000+ documents for my clients.

$105 Chat With Writer
Engineering Guru

ONLINE

Engineering Guru

Hello, I have more than 10 years of writing experience. I can manage essays, summaries, reports and analysis works in very short period of time. I produce plagiarism free content for my clients, will send you FREE TURNITIN Reports as well. Thank you.

$130 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I feel, I would be the best choice for this project, I have more than 10 years of working experience in writing essys, reports, case studies and dissertations. Give me your work and get relax

$100 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

4.4 evaluate procedures for working with others - Airbus case study answers - 59.2 kg in stone - The rocking horse winner discussion questions - When does portia give bassanio the ring - Problem Set 8 - Course name : Ethical/Legal Aspects of Management - Barack obama nobel acceptance speech - Persuasive - Cpt code for removal of urolift implant - Powerlessness nursing interventions and rationales - Navajos wear nikes chapter summaries - Test and tag course albury wodonga - Carlill v carbolic smoke ball co 1893 1 qb 256 - Gyrus ent product catalog - BS DS 1. - Well hung and tender - A nurse manager is reviewing the stages of conflict resolution - Locate a bad news message somewhere on the internet - Western oregon university email - Identify three obstacles facing third parties - 4 page double space mental health disorder in nursing due 10/5/2020 - Splunk power user certification dumps - If samantha was employing the moral rights rule in her decision making, she would: - Critical Thinking Essay: Lewin’s Change Theory - Social psychology 9th edition aronson wilson & akert pdf - Depth sorting method in computer graphics - Difference between latch and flip flop with timing diagram - 1 14 uns 2b thread - Leg lig lect root word definition - 2.4 line of best fit worksheet answer key - Quality control case study - Presidential Agenda - Colonial adventure tours sql - Coal cliff collieries v sijehama - Head to toe assessment framework - Poetic word for dawn - Bouygues construction south africa - What are media codes and conventions - Nestle marketing strategy in india - Three necessary ingredients for thunderstorm formation - I need 2500 words report on Fashion Business Model Research - NTC/300: Cloud Technologies - Discussion - Chapter 8 activity 8.1 test your management iq - Older adult of nursing care - How to calculate death rate per 100 000 - Chemical reaction examples worksheets - Revenue cycle sales to cash collections - How to calculate case mix index example - Drafting of the us constitution research questions - Practical Connection Assignment - The sanctuary of school by lynda barry main idea - Summary on the book of ephesians - Nec portable generator requirements - Legal Memorandum - Where do you enter cheat codes for bloody roads california - Comprehensive problem 1 period 2 the accounting cycle - What is erikson's fifth stage of psychosocial development - Lost at sea activity - Kershaw multi tool a100 price - Which of the following statements concerning internal controls is true - What firewall does global enterprises use - AppliedManagerialFinance_Assessment1 - Which industry was the first to implement continuous quality improvement - Wileyplus brief exercise 4 6 - Soups stocks and sauces powerpoint - Nursing practice - Terminal and instrumental values examples - Porsche the cayenne launch case study - Collective noun for bananas - Me talk pretty one day summary - Cardiodynamics refers to the movements and forces generated during - Connected Access Control - Discussion Forum--Anthropology 1(need high quality assignment!!) - Dua of istikhara transliteration - The respiratory membrane consists of - Logan bar cleft lip - Ibm optim data studio - Get help with java homework - Discussion Question Responses - Comprehensive problem 2 palisade creek co answers - Research project outcome cover sheet - Sequence alignment/map optional fields specification - The holtzman corporation has assets of - Week 2 discussion - Www elsevier com graphicalabstracts - Furniture order form visual basic - Due Tonight - How does music create suspense in movies - Name four muscles that compress the abdominal contents - The stock of nogro corporation is currently - Engineering double degree curtin - Social responsibility of nike company - Baudrillard desert of the real - Wembley lumberjack stress relief ball - Discussion - The effects on international trade - Half wave rectifier circuit lab report - Advancing - Electronic configuration of argon