Robo-Lawn is a lean manufacturer of robotic lawn mowers. Each mower requires $250 of raw materials. Estimated conversion costs to produce 2,000 units in the next year are $800,000. During a recent quarter, the company produced 600 mowers and sold 580 mowers. Each mower is sold for $1,000. Required 1. Compute the conversion cost rate per mower. 2. Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of mowers on credit, and (d) cost of goods sold and finished goods inventory.
Q: To automate one of its production processes, Milwaukee Corporation bought three flexible…
A: The cost of three manufacturing cells is: Labor cost for installation:
Q: Alibangbang Company produces 100,000 units of Part 34B, used in one of its snowblower engines, each…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Each year, Basu Company produces 21,000 units of a component used in microwave ovens. An outside…
A: Formula: Differential cost = Making - Buying
Q: Henderson Company is in the process of evaluating a new part using the following information .•Part…
A: Estimated life-cycle revenues can be defined as the estimated amount of revenue that can be earned…
Q: Unicorn Company has been manufacturing its own seat for its bicycles. The company is currently…
A: Incremental analysis is a decision-making tool used to evaluate financial data and choose between…
Q: Sohar Company manufactures 10,000 units of a spare part ALFA each year for use on its production…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Robo-Lawn is a lean manufacturer of robotic lawn mowers. Each mower requires $270 of raw materials.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Alibangbang Company produces 100,000 units of Part 34B, used in one of its snowblower engines, each…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Milliken uses a digitally controlled “dyer” for placing intricate and integrated patterns on…
A: Optimal replacement time refers to the year when the asset should be replaced with the new asset.…
Q: Should Junior Company buy the part externally or make it internally?
A: Cost to the company when purchasing from supplier at 20% increased cost Cost per unit of the…
Q: How would i find the variable cost per unit?
A: Variable costs: Variable costs refers to those costs that change in proportion, with the change in…
Q: Toyang Inc. produces 100,000 units of Part 34B, used in one of its snowblowerengines, each year. An…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Ahron Company makes 8,000 units per year of a part it uses in the products it manufactures. The unit…
A: Here we will use the concept of relevant costs. In accounting a cost is considered relevant when it…
Q: three products: chairs, big tables, and little tables. Each chair requires 2 hours in the assembly…
A: Solving through linear programming problem. Let, X1= number of chairs X2= number of big tables X3=…
Q: Determine the amount of desired profit from the production and sale of flat panel displays. 2.…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: Right Size Corporation manufactures faucets. Several weeks ago, the company received a special-order…
A: Fixed administrative costs is an indirect cost. It refers to the cost that remains fixed or…
Q: ........................................................................................... 80…
A: No, La Salle, Inc. should not accept the offer of outside supplier since it they will have to incur…
Q: Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The…
A:
Q: Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product…
A: profit volume analysis table is prepared in order to find the profit of the company when ever…
Q: Terminator, Inc., manufactures a motorcycle part in lots of 300 units. The raw materials cost for…
A: The raw material cost means the cost that is occurred on the purchase of the raw materials. It is…
Q: Ibri Company, a manufacturer of stereo systems, started its production in January 2018. For the…
A: Working Notes: Depreciation should be converted into monthly by dividing it by 12 because it is…
Q: Fantastic Feeder Products Inc. manufactures high-quality wooden cutting boards sold to restaurants…
A: We have the following information: Company manufactured 1,200 CertiPro II cutting boards Company…
Q: EIric Corporation currently manufactures a part in-house that is a main component of its most…
A: Calculation of Net advantage of Buying the product from outside market Make Amount Buy…
Q: Vanessa Corporation manufactures faucets. Several weeks ago, the firm received a special-order…
A: 1) Note: The fixed administrative cost is irrelevant to the decision. No, the conclusion is…
Q: The owner of Warwick Printing is planning direct labor needs for the upcoming year. The owner has…
A: The labor cost is computed by multiplying the labor time consumed by the hourly rate.
Q: Every year Riverbed Industries manufactures 7,300 units of part 231 for use in its production cycle.…
A: A make or buy decision is the act of choosing between whether to produce in-house or purchase from…
Q: Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The…
A: In the given question the company has the capacity to produce 50000 units. If it accepts the…
Q: Han Products manufactures 50,000 units of part S-6 each year for use on its production line. At this…
A: The theory of determining the cost of making a commodity under a special order is known as relevant…
Q: Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells…
A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…
Q: Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Crystal Displays Inc. recently began production of a new product, flat panel displays, which…
A: a.
Q: Auto-Motion is a lean manufacturer of self-driving wheelchairs. The company budgets $608,000 of…
A: Total Amount of Purchase = Number of Units purchased x Cost of Raw Materials
Q: Smash Company has 4,000 machine hours available annually to manufacture badminton racquets. The…
A: The variable cost is required to be deducted from the sales revenue in order to compute the…
Q: PLEASE TO PERFORM IN EXCEL AND SHOW FORMULAS Comercial El Suspiro, S.A., purchases 2'100,000 units…
A: The reorder point (ROP) is the inventory level that causes an action to be taken to refill that…
Q: Kramer Company, makes 3,000 units every year of a component called Axial Tap for use in one of its…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: The Ramos Company manufactures two products: Treadmills and Elliptical Trainers. The costs and…
A: Maximum Possible Contribution Margin refers to the cost accounting calculation which depicts the…
Q: Your Company uses a total of 13,000 units of a part that are produced and used every year. The…
A: PLEASE LIKE THE ANSWER Answer= decrease by $79,000 per year Make Buy Direct…
Q: 1. What are the alternatives facing Zion Manufacturing with respect to List the relevant costs for…
A: Make or Buy Decision Make or Buy decision is the action taken by a producer to either make/produce a…
Q: Garcia Co. sells snowboards. Each snowboard requires direct materials of $100, direct labor of $30,…
A: The Numerical has covered the concept of calculation of Selling Price When we need to compute the…
Q: Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The…
A: The company has an installed capacity of 50,000 units and currently producing 45,000 units. The…
Q: Ross White's machine shop uses 2500 brackets during the course of a year, and this usage is…
A: Solution 1- Total annual cost of inventory if Ross buys the brackets in lots of 1000 at $14.50…
Q: Terminator, Inc., manufactures a motorcycle part in lots of 350 units. The raw materials cost for…
A: Given: Lot size = 350 Raw material cost =$170 Value added = $320 Total cost for completed unit…
Robo-Lawn is a lean manufacturer of robotic lawn mowers. Each mower requires $250 of raw materials.
Estimated conversion costs to produce 2,000 units in the next year are $800,000. During a recent quarter,
the company produced 600 mowers and sold 580 mowers. Each mower is sold for $1,000.
Required
1. Compute the conversion cost rate per mower.
2. Prepare
to production, (c) sale of mowers on credit, and (d) cost of goods sold and finished goods inventory.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
- Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. 2. What if HHH planned to purchase 30,000 of direct materials? Assume there would be no change in beginning and ending inventories of materials. Explain which line items on the statement of services produced would be affected and how (increase or decrease).Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of 45 each next year. Total selling expense is projected at 22,000, and total administrative expense is projected at 53,000. Required: 1. Prepare an income statement in good form. 2. What if Jean and Tom increased the price to 50 per cleaning and no other information was affected? Explain which line items in the income statement would be affected and how.Robo-Lawn is a lean manufacturer of robotic lawn mowers. The company budgets $800,000 of conversion costs and 10,000 production hours for this year. The manufacturing of each mower requires 5 production hours and $250 of raw materials. During a recent quarter, the company produced 600 mowers and sold 580 mowers. Each mower is sold for $1,000. Required: 1. Compute the conversion cost rate per mower. 2. Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. I just need help on D. It needs Cost of goods sold, Finished goods inventory, and Work in process inventory.
- Vintage Audio Inc. manufactures audio speakers. Each speaker requires $96 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor Depreciation Supplies Power Total cell costs for the period The operating plan calls for 195 operating hours for the period. Each speaker requires 12 minutes of cell process time. The unit selling price for ach speaker is $260. During the period, the following transactions occurred: 1. Purchased materials to produce 650 speaker units. 2. Applied conversion costs to production of 620 speaker units. 3. Completed and transferred 590 speaker units to finished goods. 4. Sold 565 speaker units. There were no inventories at the beginning of the period. a. Journalize the summary transactions (1)-(4) for the period. Round the per unit cost to the nearest cent and use in subsequent computations. If an amount box does not require an entry, leave it blank.…Auto-Motion is a lean manufacturer of self-driving wheelchairs. The company budgets $560,000 of conversion costs and 2,000 production hours for this year. The manufacturing of each wheelchair requires 30 production hours and raw materials costs of $4,480 The company started and completed 98 wheelchairs during the year and sold 85. Each wheelchair is sold for $17,000. Actual conversion costs equal applied conversion costs. Required: 1. Prepare journal entries to record (a) the purchase of raw materials on credit to produce 98 units, (b) applied conversion costs to the production of 98 units, (d) actual conversion costs of $823,200 (credit "Various Accounts"), (d) sale of 85 units on credit, and (e) ending inventory and cost of goods sold. 2. Compute the ending balances of Work in Process Inventory and Finished Goods Inventory. Assume each of these inventory accounts began the year with a balance of zero Complete this question by entering your answers in the tabs below. Required 1…Robo-Pool manufactures robotic pool vacuums. Each unit requires $225 of raw materials and $375 of conversion costs and is sold for $700. During a recent month the company produced 120 units and sold 100 units. Prepare journal entries to record each of the following. 1. Purchase of raw materials on credit. 3. Sold 100 units on credit. 2. Applied conversion costs to production. 4. Record ending inventory and cost of goods sold.
- Your manufacturing company is interested in developing a cost model to price a AM part that will be manufactured for production. Based on data that they have collected: Machine and ancillary equipment cost : $1,000,000 Equipment depreciation cost per year: $130,000 Machine Maintenance cost per year: $50,000 Machine operator cost per hour : $40/hr Set up and prep time for each build : 30 min Post processing time per build: 1 hr Material Cost per Kg: $275/kg Amount of material needed per part: 100mgs/part They estimate the following: a. Number of parts made per year: 60,000 b. Each build can build 200 parts simultaneously on a single platform c. Build time for each platform of 200 parts: 25 hrs d. The factory will run 24/7 for 200 days in a year. Under this scenario what will be the cost per part ?Carina Company produces sanitation products after processing specialized chemicals; Thefollowing relates to its activities: 1 Kilogram of chemicals purchased for $2000 and with an additional $1000 isprocessed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, agram of Crystal can be sold for $1 and the Cleaning agent can be sold for $4 per litre.2. At an additional cost of $400, Carina can process the 400 grams of Crystal into 500grams of Detergent that can be sold for $2 per gram. The 80 litres of Cleaning agent ispackaged at an additional cost of $300 and made into 200 packs of Softener that canbe sold for $2 per pack.Required:1. Allocate the joint cost to the Detergent and the Softener using the following:a. Sales value at split-off method b. NRV method 2. Should Carina have processed each of the products further? What effect does the allocationmethod have on this decision?Each year, Giada Company produces 20,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.39. The unit cost is: Direct materials $0.83 Direct labor 0.34 Variable overhead 0.13 Fixed overhead 2.55 Total unit cost $3.85 1. What are the alternatives for Giada Company? a. Make the part in house b.Buy the part externally c.Make the part in house or buy the part externally d.None 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. a.Direct materials, direct labor and variable and fixed overhead b.Direct materials, direct labor and variable overhead c.Direct materials, direct labor and fixed overhead d.None List the relevant cost(s) of external purchase. a.Purchase price b.Sales price c.Material price d.None 3. Which alternative is more cost effective and by how much? a. Making the part in house b. Buying the part from the external supplier by $___________ 4. What if…
- Carina Company produces sanitation products after processing specialized chemicals; Thefollowing relates to its activities: 1 Kilogram of chemicals purchased for $2000 and with an additional $1000 isprocessed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, agram of Crystal can be sold for $1 and the Cleaning agent can be sold for $4 per litre. At an additional cost of $400, Carina can process the 400 grams of Crystal into 500 grams of Detergent that can be sold for $2 per gram. The 80 litres of Cleaning agent is packaged at an additional cost of $300 and made into 200 packs of Softener that can be sold for $2 per pack. Required: 1. Allocate the joint cost to the Detergent and the Softener using the following: a. Sales value at split-off method b. NRV method 2. Should Carina have processed each of the products further? What effect does the allocationmethod have on this decision? Make full references to Question 1 when possibleCarina Company produces sanitation products after processing specialized chemicals; Thefollowing relates to its activities: 1 Kilogram of chemicals purchased for $2000 and with an additional $1000 isprocessed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, agram of Crystal can be sold for $1 and the Cleaning agent can be sold for $4 per litre. At an additional cost of $400, Carina can process the 400 grams of Crystal into 500grams of Detergent that can be sold for $2 per gram. The 80 litres of Cleaning agent ispackaged at an additional cost of $300 and made into 200 packs of Softener that canbe sold for $2 per pack.Required:1. Allocate the joint cost to the Detergent and the Softener using the following:a. Sales value at split-off method b. NRV method 2. Should Carina have processed each of the products further? What effect does the allocation method have on this decision?Carina Company produces sanitation products after processing specialized chemicals; Thefollowing relates to its activities:1 Kilogram of chemicals purchased for $2000 and with an additional $1000 isprocessed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, agram of Crystal can be sold for $1 and the Cleaning agent can be sold for $4 per litre.At an additional cost of $400, Carina can process the 400 grams of Crystal into 500grams of Detergent that can be sold for $2 per gram. The 80 litres of Cleaning agent ispackaged at an additional cost of $300 and made into 200 packs of Softener that canbe sold for $2 per pack.1. Should Carina have processed each of the products further? What effect does the allocationmethod have on this decision?