Answers for Discussion outline problems:

 

 

Chapter

Problem #

Company Name

Answer

2

Demo 1

Thompson

COGM= $216,450

COGS= $217,550

 

Demo 2

Danan

Net Income= $175,000

 

Group 1

Gaillard

COGM=  $335,300

COGS= $330,540

 

Group 2

Photosmart

Number of cameras= 6500

Value End. Inv= $44,525

COGS=$1,417,950

Net Inc = $386,800

 

Practice 1

Cheaper Ent.

Finished goods = $50,000

WIP= $28,000

Direct Mat.= $62000

 

Practice 2

Whizbang

COGM= $415,000

COGS= $373,500

 

Practice 3

Carlton

COGM = $118, 690

COGS= $113,790

Net Inc. = $174,000

 

 

 

 

Chapter 3

 

 

 

 

Demo 1

 

Variable cost/ unit = .09

Fixed cost = $170

 

Group 1

Johnstonian

Variable cost/unit = -.09

Fixed cost = $1250

 

Demo 2

Covered in class

 

 

Practice 1

Xavier

Variable cost/ unit and total fixed

Costs are not constant

b. Y= 4520+3.20(MH)

c. Y= 4012.25+ 3.44 (MH)

 

 

 

 

Chapter 4

 

 

 

 

Demo 1

Schramka

1)      painted= 234.50/unit and unpainted= 153.75/ unit

2)      painted= 454.20 and unpainted- 248.75

Note that I did not include paint for the unpainted chair

 

Demo 2

Howell

Traditional A= 11.82; B= 13.82; C=11.32

ABC  A= 11.56; B= 18.65; C= 9.88

 

Demo 3

 

Answer included

 

Group 1

SU Company

Traditional Standard=273.85; Unique=480.00

ABC  Standard=218.40; Unique=695.00

 

Group 2

Lutz

Per unit costs are:

Traditional: Quality= 275.04; Superior= 537.60; Superb=1280.24

ABC: Quality = 361.0; Superior= 410.80; Superb= 998.00

 

Group 3

Tyson

Per unit costs are:

Traditional: Classic= 8.00 ; Modern = 5.50

ABC: Classic= 5.50; Modern = 7.50

 

 

 

 

 

 

 

 

Chapter 5

 

 

 

 

Demo 1

Harris

1) $3/ Direct labor hour

2) $570,000 debt wip and credit overhead

3) $8,000 over; to close debit overhead and credit COGS

 

Practice 1

Rayburn

1)      $50

2)      $400,000 over

3)      Debit overhead and credit COGS 400,000

      4.)  Debit overhead $400,000 and then credit          WIP=$76,000, COGS $240,000 and Fin. Goods $84,000

 

 

 

 

 

Demo 2

Ace

COGM = 392,500

COGS= 187,500

Overapplied overhead= 10,000

 

Group 1

Polson

COGM= 565,000

COGS= 590,000

Under applied overhead= 20,850

 

Practice 1

Update

End WIP= 5300

End Materials= 11,000

D. Materials purchased= 42,000

Applied overhead= 15,600

COGM= 89,000

 

Practice 2

Weismer

DM 12/31= 20,000

Finished Goods 1/31 = 142,000

Direct labor = 150,000

Actual overhead = 256,000

Payroll liable= 19,000

WIP 1/31= 30,000

WIP 12/31= 10,000

 

Practice 3

Farawell

Materials purchased = 350,000

D. Materials used = 405,000

Materials 12/31= 136,000

OH rate = 1.75/ dlhr

Applied overhead = 245,000

Under applied overhead = 2,000

To Fin. Goods= 803,650

WIP 12/31= 54,900

OH in end = 21,000

Chapter 6

 

 

 

 

Demo 1

Wantler

EU: Mat=12000; DL=11400; OH=11400

Cost/EU=$6

Cost Goods T/O=378000

End WIP=447000

 

Group 1

Ming

EU: Mat=10000; Conv=9500

Cost/EU=15.20

Cost Goods T/O=136800

End WIP=11200

 

Demo 2

Estrella

Weighted Average: Cost Goods T/O=13200

End WIP=3400

EU: DM=80000; CC=68000

FIFO: Cost Goods Completed=13000

End WIP=4000

EU: DM=70000; CC=61000

 

Group 2

Novel

EU: DM=10000; CC=9250

Cost/EU=.39

Cost T/O=3510

End WIP=390

 

Demo 3

 

 

 

Group 3

 

Weighted Average-Assembly: EU: DM=40; CC=38

Cost/EU=709,000

Cost T/O=21,270,000

End WIP=6,690,000

Weighted Average-Finishing: EU: DM=40; CC=37; TI=40

Cost/EU=999,500

Cost T/O=29,985,000

End WIP=9,405,500

FIFO-Assembly: EU: DM=30; CC=36

Cost/EU=712,000

Cost T/O=21,240,000

End WIP=6,720,000

FIFO-Finishing: EU: DM=30; CC=35; TI=30

Cost/EU=999,300

Cost T/O=29,956,400

End WIP=9,404,100

 

Practice 1

 

FIFO EU: DM=250,000; DL=271,000; OH=258,250

WA EU: DM=325,000; DL=316,000; OH=322,000

 

Practice 2

 

WA EU: DM=20,000; CC=18,000; TI=20,000

Cost/EU=2.78

Cost T/O=33,360

End WIP=21,580

FIFO EU: DM=14,000; CC=15,000; TI=14,000

Cost/EU=2.77

Cost T/O=

End WIP=

Chapter 7

Demonstration 1

Homestead

Direct: Pottery – 205,445; Retail – 229,555

Step: Pottery – 203,984; Retail – 231,016

Equation: Pottery – 205,192; Retail – 229,808

 

Practice 1

Ragsdale

Direct: X – 1344.66; Y – 1033.33

Step: X – 1358; Y – 1010

Equation: A = 560 + .2(B) + 0(C); B = 744 + .1(A) + .1(C); C = 484 + .2(A) + .1(B)

 

Practice 2

Eastern Science

 

 

Practice 3

Kare Food

Direct: Cooking – 412,778; Packaging – 257,222

Step: Cooking – 397,667; Packaging – 272,333

Equation: Cooking – 400,000; Packaging – 270,000