Trago Company manufactures a single product and has a JIT policy that ending inv
ID: 2485919 • Letter: T
Question
Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 28,200 units. June and July sales are estimated to be 282,000 and 292,000 units, respectively. Trago assigns variable overhead at a rate of $2.00 per unit of production. Fixed overhead equals $402,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for month of June.
$966,000.
$968,000.
$566,000.
$978,000.
$986,000.
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per unit, Direct labor, $4 per unit, Variable overhead, $5 per unit, and Fixed overhead, $220,000. The company produced 22,000 units, and sold 16,000 units, leaving 6,000 units in inventory at year-end. What is the value of ending inventory under variable costing?
$90,000
$150,000
$60,000
$220,000
Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
The Black Division occupies 36,000 square feet in the plant. The Navy Division occupies 54,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $90,000. Compute departmental income for the Black and Navy Divisions, respectively. (Do not round your intermediate computations)
$637,000; $131,000.
$773,000; $343,000.
$73,000; $156,000.
$73,000; $185,000.
$700,000; $232,000.
Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 28,200 units. June and July sales are estimated to be 282,000 and 292,000 units, respectively. Trago assigns variable overhead at a rate of $2.00 per unit of production. Fixed overhead equals $402,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for month of June.
$966,000.
$968,000.
$566,000.
$978,000.
$986,000.
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per unit, Direct labor, $4 per unit, Variable overhead, $5 per unit, and Fixed overhead, $220,000. The company produced 22,000 units, and sold 16,000 units, leaving 6,000 units in inventory at year-end. What is the value of ending inventory under variable costing?
$90,000
$150,000
$60,000
$220,000
Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
Explanation / Answer
June July closing units 29200 Add : Budgeted sales 282000 292000 Less opening units 28200 Units to be produced 283000 Variable OH rate per unit 2 Total variable OH 566000 Add : Fixed OH 402000 Total factory OH 968000 Hence 2nd option is correct Product cost - variable costing Direct material 6 Direct labor 4 Variable Overhead 5 Total product cost 15 Closing units 6000 Value of closing inventory 90000 Hence 1st option is correct Black Division Navy Division Sales ( net) 800000 390000 Less cost of goods sold 100000 158000 Gross Margin 700000 232000 Less Salaries 27000 47000 Rent 36000 54000 departmental income 637000 131000 Rent working total area ( 36000 + 54000) 90000 Black Division Navy Division Total Area 36000 54000 90000 Total rent 90000 Rent allocated (36000/90000*90000) (54000/90000*90000) = 36000 = 54000 hence 1st option is correct
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.