1. Sully Company uses 3‚000 yards of canvas each day to make tents. It usually takes ten days from the time Sully orders the material to when it is received. If Sully’s desired safety stock is 12‚000 yards‚ what is Sully’s order point? a. 12‚000 yards b. 21‚000 yards c. 30‚000 yards d. 42‚000 yards ANS: D 3‚000 (daily usage) x 10 (lead time) 30‚000 Safety stock 12‚000 Order point 42‚000 PTS: 1 DIF: Moderate REF: P. OBJ: 1 NAT: IMA 3A - Strategic Management TOP: AACSB - Analytic 2. What
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AC505 MANAGERIAL ACCOUNTING PRACTICE FINAL INSTRUCTIONS: Please fill in the blank for question 1 and select the appropriate response to questions 2 through 45. 1. Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands ($000) of dollars: Sales $31‚800 Purchases of direct materials 7‚000 Direct labor 5‚000 Work in process inventory‚ 1/1 800 Work
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ADM 3346A COST ACCOUNTING Solution Fall 2010 Midterm Examination STUDENT NAME: _________________________________________________ STUDENT NUMBER: ________________________________________________ 90 minutes INSTRUCTIONS 1. 2. 3. 4. Books and notes are not permitted‚ except language dictionaries. Non programmable calculators are permitted. Put all answers in the question booklet Questions concerning possible errors in the exam only will be answered. Questions Max Points
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For example‚ Sugar‚ food‚ chemical industry. Many units of a single‚ homogeneous product flow evenly through continuous production process(s). One unit of product is indistinguishable (at process-level) from any other unit of product. Each unit average cost. of product is assigned the same SOME EXAMPLES OF BUSINESSES USING PROCESS COSTING Process Costing Extraction In a process cost system‚ Process costing accumulates costs by process or department and then assigns them to a large number
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HOMEWORK 1 (Total Possible Points: 100) You MUST show your work! Problem 1: CVP analysis (30 points total) The owners of LA’s Gym currently are working on their operating plan for the coming year‚ and they have provided you with the following average membership and cost data for the previous year: Annual membership fee $500 per member Number of members 6‚000 Variable cost (supplies‚ instructors‚ etc.) $160 per member Fixed costs (equipment‚ salaries‚ etc.) $1‚224‚000 The owners
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the weighted-average method is: | | | Student Answer: | | the same as the number of units put into production. | | | | less than the number of units put into production. | | | | the same as the number of units completed. | | | | less than the number of units completed. | | Instructor Explanation: | Chapter 4 | | | | Points Received: | 0 of 5 | | Comments: | | | | 2. | Question : | (TCO F) Luft Company uses the weighted-average
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CHAPTERS 6-12 Use the following to answer question 1: Wright Corporation’s contribution format income statement for last month appears below. Sales $45‚000 Less variable expenses 27‚000 Contribution margin 18‚000 Less fixed expenses 12‚000 Net income $6‚000 There were no beginning or ending inventories. The company produced and sold 3‚000 units during the month. Ch. 9 1. If sales decrease by 500 units by next month‚ by how much would fixed expenses have to be reduced to maintain the current
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CHAPTER 18 SPOILAGE‚ REWORK‚ AND SCRAP TRUE/FALSE 1. Reducing defects helps to reduce costs‚ but it does not make the business more competitive. 2. Scrap and rework are considered to be the same thing by managerial accountants. 3. Spoilage can be considered either normal or abnormal. 4. Counting spoiled units as part of output units in a process-costing system usually results in a higher cost per unit. 5. Under the FIFO
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cost need to be allocated by the number of cartons processed in year 2000‚ which is 80‚000 cartons. Then we get the overhead rate for handling cost that is $52.00 per carton. We only have the freight cost that is associated with normal shipment. We divide total cost $450‚000 by the number of carton shipped only through normal shipment‚ which is 750‚000 cartons. Then‚ we get the overhead rate for ship carton‚ which is $6.00 per carton. We also have desktop deliver option for customer. The total cost
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used in job order costing system 3.1.1 Job Cost Sheet 3.1.2 Material Acquisition Form 3.1.3 Time Ticket 4.0 Description of manufacturing overheads allocation and its problems 4.1 How manufacturing overheads are allocated among different jobs 4.1.1 Direct labor hours 4.1.2 Machine hours 4.2 Main problem of using unsuitable base for overheads allocation 5.0 Summary 6.0 References 1) One of the companies that used job orders product costing system is (not needed) 2) the point
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