The following information pertains to the August manufacturing

Gleim: CMA Exam Prep Assignment 1 (Must be completed in excel)Due: In class on November 22, 2016 (only hard copies will be accepted)Value: 5% of your final grade Gleim: CMA Exam Prep 1) The following information pertains to the August manufacturing activities of Griss Co.:Beginning work-in-process (BWIP) $12,000Ending work-in-process (EWIP)10,000Cost of goods manufactured97,000(COGM)Direct materials issued to production 20,000Manufacturing overhead is assigned at 150% of direct labor. What was the August direct labor?Use the following information to answer questions 2, 3, and 4.2) Baehr Company is a manufacturing company with a fiscal year that runs from July 1 to June30. The company uses a job-order accounting system for its production costs. A predeterminedoverhead rate based upon direct labor hours is used to apply overhead to individual jobs. Aflexible budget of overhead costs was prepared for the fiscal year as shown below.Direct labor hours100,000120,000140,000 Variable overhead costs$325,000$390,000$455,000Fixed overhead costs216,000216,000216,000 Total overhead$541,000$606,000$671,000 Although the annual ideal capacity is 150,000 direct labor hours, company officials havedetermined 120,000 direct labor hours to be normal capacity for the year.The information presented below is for November. Jobs 83-50 and 83-51 were completedduring November. Gleim: CMA Exam Prep Inventories November 1:Raw materials and supplies$ ?10,500Work-in-process (Job 83-50)54,000Finished goods112,500 Materials and suppliesrequisitioned for production:Job 83-50$ 45,000Job 83-5137,500Job 83-5225,500 Purchases of raw materials andsupplies:Raw materials$135,000Supplies15,000 Supplies12,000 $120,000$150,000 Factory direct labor hours: Labor costs: Job 83-50 Direct labor wages3,500 Job 83-513,000Job 83-522,000 $51,000Indirect labor wages(4,000 hours)15,000Supervisory salaries6,000 8,500$72,000 Building occupancy costs(heat, light,depreciation, etc.):Factory facilities$6,500 Factory equipment costs:Power$4,000Repairs and maintenance1,500 Gleim: CMA Exam Prep Sales offices Depreciation1,500 Administrative offices 1,500Other 1,000 1,000 $9,000 $8,000 Actual manufacturing overhead incurred during November was __________?3) Assume the predetermined overhead rate is $4.50 per direct labor hour. The total cost ofJob 83-50 is __________ ?4) Assume Baehr’s predetermined overhead rate is $4.50 per direct labor hour. The total amountof overhead applied to jobs during November was5) A company has identified the following overhead costs and cost drivers for the coming year:Overhead ItemCost DriverBudgeted Cost Budgeted Activity LevelMachine setup Number of setups$ 20,000200InspectionNumber of inspections130,0006,500MaterialNumber of material80,0008,000handlingmovesEngineeringEngineering hours50,0001,000Total $280,000 The following information was collected on three jobs that were completed during the year:Job 101 Job 102 Job 103Direct materials$5,000$12,00$8,0000Direct labor$2,000$$4,0002,000Units completed10050200Number of setups124Number of inspections201030Number of material301050movesEngineering hours105010 Gleim: CMA Exam Prep If the company uses activity-based costing, compute the cost of each unit of Job 102….e the following information to answer questions 6, 7, and 8.6) Kimbeth Manufacturing uses a process costsystem to manufacture Dust Density Sensorsfor the mining industry. The followinginformation pertains to operations for themonth of May.UnitsBeginning work-in-process inventory,May 1Started in production during MayCompleted production during MayEnding work-in-process inventory,May 31 16,000 The beginning inventory was 60% completefor materials and 20% complete forconversion costs. The ending inventory was90% complete for materials and 40%complete for conversion costs.Costs pertaining to the month of May are asfollows:Beginning inventory costs are 100,000 materials, $54,560; direct labor, $20,320; and92,000 factory overhead, $15,240.24,000 Costs incurred during May arematerials used, $468,000; direct labor,$182,880; and factory overhead, $391,160. 6) Using the weighted-average method, the equivalent unit cost of materials for May is__________?7) Using the weighted-average method, the equivalent unit conversion cost for May is__________?8) Using the weighted-average method, the total cost of the units in the ending work-in-processinventory at May 31 is __________? 9) One hundred pounds of raw material W is processed into 60 pounds of X and 40 pounds of Y.Joint costs are $135. X is sold for $2.50 per pound, and Y can be sold for $3.00 per pound orprocessed further into 30 pounds of Z (10 pounds are lost in the second process) at an additionalcost of $60. Each pound of Z can then be sold for $6.00. What is the effect on profits of furtherprocessing product Y into product Z?10) Breegle Company produces three products (B-40, J-60, and H-102) from a single process.Breegle uses the physical volume method to allocate joint costs of $22,500 per batch to theproducts. Based on the following information, which product(s) should Breegle continue toprocess after the split-off point in order to maximize profit? Gleim: CMA Exam Prep B-40J-60H-102 Physical units produced per batch1,5002,0003,200Sales value per unit at split-off$10.00$4.00$7.25Cost per unit of further processing after split-off3.051.002.50Sales value per unit after further processing12.255.709.7511) Jackson, Inc., is preparing a flexible budget for next year and requires a breakdown of thecost of steam used in its factory into the fixed and variable elements. The following data on thecost of steam used and direct labor hours worked are available for the last 6 months of this year:MonthJuly Cost of Steam Direct Labor Hours$15,85013,40016,370 3,000 August2,050Septembe2,900rOctober19,8003,650November 17,6002,670December 18,5002,650Total$101,5216,9200Assuming that Jackson uses the high-low method of analysis, the estimated variable cost ofsteam per direct labor hour is __________? Gleim: CMA Exam Prep 12) The following information pertains to Sisk Co.:Sales (25,000 units)$500,000Direct materials and direct labor 150,000Factory overhead:Variable20,000Fixed35,000Selling and general expenses:Variable5,000Fixed30,000Sisk’s breakeven point in number of units is __________? 13) The data below pertain to the forecasts of XYZ Company for the upcoming year.Total Cost Unit CostSales (40,000$1,000,000 $25units)Raw materials160,0004Direct labor280,0007Manufacturing overhead:Variable80,0002Fixed360,000Selling and general expenses:Variable120,0003Fixed225,000Assuming that XYZ Company sells 80,000 units, what is the maximum that can be paid for anadvertising campaign while still breaking even? 14) The officers of Bradshaw Company are reviewing the profitability of the company’s fourproducts and the potential effects of several proposals for varying the product mix. An excerptfrom the income statement and other data follow:TotalsProduct PProduct Q Gleim: CMA Exam Prep Product RProduct S Revenues$62,600$10,000$18,000$12,600$22,000Cost of goods sold44,2744,7507,05613,96818,500 Gross profit$18,326 Gleim: CMA Exam Prep $ 5,250$10,944$ (1,368)$ 3,500Operating expenses12,0121,9902,9762,8264,220 Income before income taxes$ ?6,314$ 3,260$ 7,968$ (4,194)$ ?(720) Gleim: CMA Exam Prep Units sold1,0001,2001,8002,000Sales price per unit$10.00$15.00$7.00$11.00Variable cost of goods sold per unit2.503.006.506.00Variable operating expenses per unit1.171.251.001.20Production of P can be doubled by adding a second shift, but higher wages must be paid,increasing the variable cost of goods sold to $3.50 for each additional unit. If the 1,000additional units of P can be sold at $10 each, the total effect on income before income taxes willbe __________? Gleim: CMA Exam Prep 15) The ABC Company manufactures components for use in producing one of its finishedproducts. When 12,000 units are produced, the full cost per unit is $35, separated as follows:Direct$ 5materialsDirect15laborVariable overhead 10Fixed overhead5The XYZ Company has offered to sell 12,000 components to ABC for $37 each. If ABC acceptsthe offer, some of the facilities currently being used to manufacture the components can berented as warehouse space for $40,000. However, $3 of the fixed overhead currently applied toeach component would have to be covered by ABC’s other products. What is the differential costto the ABC Company of purchasing the components from the XYZ Company?16.) Oak Co. bought a machine which they will depreciate on the straight-line basis over anestimated useful life of 7 years. The machine has no salvage value. They expect the machine togenerate after-tax net cash inflows from operations of $110,000 in each of the 7 years. Oak’sminimum rate of return is 12%. Information on present value factors is as follows:Present value of $1 at 12% at theendof seven periods .0452 Present value of an ordinary annuityof $1 at 12% for seven periods 4.564 Assuming a positive net present value of $12,000, what was the cost of the machine? 17) The following information applies to Brandon Company:Purchases SalesJanuary $160,000 $100,000Februar 160,000 200,000yMarch160,000 240,000April140,000 300,000May140,000 260,000June120,000 240,000Brandon pays for 40% of purchases in cash at the time of purchase and 30% in each of the next 2months. Purchases for the previous November and December were $150,000 per month. Payrollis 10% of sales in the month it occurs, and operating expenses are 20% of the following month’ssales (July sales were $220,000). Interest payments were $20,000 paid quarterly in January andApril. Brandon’s cash disbursements for the month of April were __________? Gleim: CMA Exam Prep Use the following information to answer questions 18 and 19. Gleim: CMA Exam Prep 18) The standard direct labor cost to produce 1 pound of output for Noth Company is presentedbelow. Related data regarding the planned and actual production activities for the current monthfor the company are also given below. (DLH = Direct Labor Hours)Direct Labor Standard: .4 DLH @ $12.00 per DLHPlanned production15,000 poundsActual production15,500 poundsActual direct labor costs (6,250$75,250DLH)Noth Company’s direct labor rate variance for the current month would be __________? 19) Noth Company’s direct labor efficiency variance for the current month would be__________? 20) Union Company uses a standard cost accounting system. The following manufacturingoverhead and production data are available for August:Standard fixed overhead rate per DLH$1Standard variable overhead rate per DLH$4Budgeted monthly DLH40,000Actual DLH worked39,500Standard DLH allowed for actual39,000productionOverall overhead variance – favorable$2,000The applied manufacturing overhead for August should be __________?