5.10 Machine Manufacturing is involved in the production of machine parts. The company uses 500,000 pounds of steel annually. The current purchasing cost for steel is P2.20 per pound. The carrying cost for inventory is 20% of the purchase price. The cost of ordering steel is P1,000 per order. The company has decided to maintain a safety stock of 20,000 pounds. The delivery time per order is 10 days. The company works 365 days a year. to yoʻul sisesingy els mort to alledsasd evud ebno gnihoge hogaboo)
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- Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140Ceder Company has compiled the following data for the upcoming year: • Sales are expected to be 16,500 units at $50 each. • Each unit requires 4 pounds of direct materials at $3.00 per pound. • Each unit requires 1.8 hours of direct labor at $13 per hour. • • • • Manufacturing overhead is $4.00 per unit. Beginning direct materials inventory is $4,500. Ending direct materials inventory is $5,600. Selling and administrative costs totaled $137,370. Required: 1. Determine Ceder's budgeted cost of goods sold. 2. Complete Ceder's budgeted income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete Ceder's budgeted income statement. Note: Do not round the intermediate values. CEDER COMPANY Budgeted Income Statement Budgeted Gross Margin Budgeted Net Operating IncomeMinalass Mfg. is involved in the production of machine parts. The company uses 500,000 pounds of steel annually. The current purchasing cost for steel is P2.20 per pound. The carrying cost for inventory is 20% of the purchase price. The cost of ordering steel is P1,000 per order. The company has decided to maintain a safety stock of 20,000 pounds. Delivery time per order is 10 days. The company works 365 days a year. Required: (Round up answer) Determine the optimal EOQ How many orders will placed annually? What is the average inventory What is the inventory order point? (that is, at what level of inventory should a new order be placed) What is the company’s total (relevant) inventory costs for the year?
- ACE processing company uses 2,400 units of a product per year on a continuous basis. The product carrying costs are 60 per year and ordering costs are 252.05 per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. (a) Calculate the economic order quantity. (b) Calculate the total cost per year to order and carry this item.Mervin Company produces circuit boards that sell for $8 per unit. It currently has capacity to produce 600,000 circuit boards per year but is selling 550,000 boards per year. Annual costs for the 550,000 circuit boards follow. Direct materials $ 825,000 Direct labor 1,100,000 Overhead . 1,375,000 Selling expenses 275,000 Administrative expenses . 550,000 Total costs and expenses $4,125,000 An overseas customer has offered to buy 50,000 circuit boards for $6 per unit. The customer is in a different market from Mervin’s regular customers and would not affect regular sales. A study of its costs in anticipation of this additional business reveals the following: ∙ Direct materials and direct labor are 100% variable. ∙ Twenty percent of overhead is fixed at any production level from 550,000 units to 600,000 units; the remaining 80% of annual overhead costs are variable with respect to volume. ∙ Selling expenses are 40% variable with respect to number of units sold, and the other 60% of…Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company can process up to 20923 tonnes of stainless steel sheets in a year. The company pays the steel company $1318 per tonne of stainless steel sheets and each tonne is used to manufacture $3906 worth of elbows and reducers. Variable processing costs are $438 per tonne and fixed processing costs $4 million per year at all production levels. Administrative overhead is $2 million per year regardless of the volume of the production. Marketing and transportation costs work out to be $393 per tonne. Determine the break-even volume in terms of percent capacity utilization. Answer to two decimals without a % sign. Ex, 14.25% is entered as 14.25 Hint: The fixed costs need to be mulitplied by 1,000,000 Answer: ?
- 34. Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 36,000 units next year and Product L is expected to sell 7,200 units. A unit of either product requires 0.9 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $3,304,800. What is the overhead cost per unit for Product L if the overhead cost per unit for Product H is $45.90Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 15,000 units at $55.00 each. Each unit requires 4 pounds of direct materials at $2.70 per pound. Each unit requires 1.5 hours of direct labor at $18.00 per hour. Manufacturing overhead is $3.70 per unit. Beginning direct materials inventory is $4,200.00. Ending direct materials inventory is $5,150.00. Selling and administrative costs totaled $136,920. Required: 1. Determine Ceder's budgeted cost of goods sold. 2. Complete Ceder's budgeted income statement.
- Marks Co. has a capacity of 100,000 units. They are currently producing and selling 90,000 units at $50 per unit. The cost of a unit at the present production level is as follows: Direct materials Direct labor Variable overhead Fixed overhead Per unit $19 11 6 9 $45 An order for 10,000 units has just been received from a foreign company at a price of $42 per unit. Freight costs of $2 per unit would be required. (A) Should Marks accept the order? Why or why not? (B) Assume the order was for 12,000 units. Should Marks accept the order? Why or why not?Ceder Company has compiled the following data for the upcoming year:Sales are expected to be 14,000 units at $60.00 each.Each unit requires 3 pounds of direct materials at $3.50 per pound.Each unit requires 1.7 hours of direct labor at $18.00 per hour.Manufacturing overhead is $4.50 per unit.Beginning direct materials inventory is $5,000.00.Ending direct materials inventory is $6,350.00.Selling and administrative costs totaled $138,120.Required:1. Determine Ceder's budgeted cost of goods sold.2. Complete Ceder's budgeted income statement. Required 1 Required 2 Complete this question by entering your answers in the tabs below.Determine Ceder's budgeted cost of goods sold. (Do not round the intermediate values.)Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 14,500 units at $50.00 each. Each unit requires 3 pounds of direct materials at $2.60 per pound. Each unit requires 1.4 hours of direct labor at $17.00 per hour. Manufacturing overhead is $3.60 per unit. Beginning direct materials inventory is $4,100.00. Ending direct materials inventory is $5,000.00. Selling and administrative costs totaled $136,770. Required: 1. Determine Ceder's budgeted cost of goods sold. (do not round intermediate values) 2. Complete Ceder's budgeted income statement.