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chubhunter [2.5K]
2 years ago
10

The following selected account balances are provided for Delray Mfg.

Business
1 answer:
Marina CMI [18]2 years ago
6 0

Answer:

                  DELRAY MFG.  

               Income Statement  

For the year ended December 31, 2017  

 

Sales                           $1,250,000

<u>Cost of goods sold       623,840</u>

Gross profit                        626,160

General and

<u>Administrative expenses       129,300</u>

Net Income                    $496,860

 

              DELRAY MFG.  

Statement of Cost of Goods Sold  

For the year December 31, 2017  

 

Raw Material  

Raw material, beginning     $37,000

<u>Add: Purchases                      175,600</u>

Raw materials available    $212,600

<u>Less: Raw material, end        42,700 </u>

Cost of raw material used      169,900

<u>Add: Direct labor                     225,000</u>

Prime Cost                             394,900

<u> Add: Manufacturing overhead       221,090 </u>

Manufacturing cost              615,990

Add: Work in process, beginning    53,900

<u>Less: Work in process, Ending       41,500 </u>

Cost of Goods Manufactured    628,390

Add: Finished goods, beginning      62,750

Cost of goods available for sale     691,140

<u> Less: Finished goods, ending         67,300 </u>

Cost of goods sold         $623,840

Explanation:

Income statement is computed by deducting cost of goods sold from the sales of the period to get the gross profit, then deduct the general and administrative expenses to get the net income for the period.

To compute cost of goods sold it started from the raw materials beginning inventory then add the purchases of the raw materials including the handling cost to get the raw materials available. Then deduct the raw materials end to get the cost of raw material used for the period. Add direct labor to get the prime cost and then add manufacturing overhead to the prime cost to get the manufacturing cost. Lastly, add work in process beginning and deduct the work in process end to get the cost of goods manufactured then add the finished goods beginning to get the cost of goods available for sale. And from there we deduct the finished goods ending inventory to get the cost of goods sold for the period.

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Interdepartment Services: Step Method
Stells [14]

Answer:

O'Brian's Department Stores

a) Determination of the percentage of total personnel department services that was provided to the Payroll department

Since allocation of the personnel department services is based on the number of employees, we can use this to calculate the percentage.  The personnel employees are not included in this calculation.

= 4/32 x 100 = 12.5%

b) Percentage of total payroll department services provided to the personnel department.  Since the basis is the gross payroll, we can use this to calculate the percentage.  The gross payroll of the Payroll department is not included in the calculation.

= $6,000/$42,100 x 100 = 14.3%

c)                          Personnel  Payroll  House-     Clothing   Furniture    Total

                                                         Ware

Direct department

  cost               $ 7,800  $ 3,200    $ 12,200   $ 20,000  $ 16,750  $59,950

Number of

  employees       5              4                8               16             4             37

Gross payroll $ 6,000  $ 3,300    $ 10,600     $ 17,400    $ 8,100   $45,400

Total cost      $13,800   $6,500    $22,800     $37,400  $24,850  $105,350

Allocation of service departments costs, using the step method:

Personnel      -13,800      1,725          3,450         6,900       1,725       13,800

Payroll              0           -8,225           2,415         3,965        1,845       8,225

Total allocated 0               0          $28,665    $48,265   $28,420 $105,350

Explanation:

a) Data:

                        Personnel  Payroll  House-     Clothing   Furniture    Total

                                                         Ware

Direct department

  cost               $ 7,800  $ 3,200    $ 12,200   $ 20,000  $ 16,750  $59,950

Number of

  employees       5              4                8               16             4             37

Gross payroll $ 6,000  $ 3,300    $ 10,600     $ 17,400    $ 8,100   $45,400

b) Cost allocation & Calculations:

Personnel (based on the number of employees)

Rate = $13,800/32 = $431.25 per employee

Payroll (based on gross payroll)

Rate = Payroll cost = Payroll cost divided by the total gross payroll in the other departments, excluding personnel and payroll departments

= $8,225/$36,100 = $0.2278 per gross payroll

c) Allocation of service departments' costs is a method of apportioning costs incurred by service departments to the production departments in order to include all the costs in the product costs.  Three methods exist for allocating service departments' costs to the production departments.  The first, which is the simplest, is the direct method.  With this method, the costs of service departments are allocated directly to each production department based on the consumption of the service department's services.  They are not allocated to other service departments.

The second method is the step method.  Here, the costs of one service department with the highest cost are allocated to all other departments first, including production and other service departments following a step.  The costs of the next service department with the highest costs are allocated to the remaining departments.  This step is continued until all the service departments' costs have been allocated.  Once the costs of a service department have been completely allocated, that department would not be allocated any other cost.

The Reciprocal method, which is the last method, is the most accurate and complicated method.  This method first establishes the relationship among the service departments in equation form and uses the established equations to allocate the costs of service departments.  We may not discuss it further than this.

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3 years ago
Project teams are formed to Multiple Choice take on "one-time" tasks that are often complex and require input from members with
AlladinOne [14]

Answer:

take on "one-time" tasks that are often complex and require input from members with different types of training and expertise.

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.

Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.

The fundamentals of Project Management includes;

1. Project initiation

2. Project planning

3. Project execution

4. Monitoring and controlling of the project

5. Adapting and closure of project.

Basically, it is very important and essential that project managers in various organizations, businesses and professions form a project team, so as to successfully achieve their aim, objectives and goals set for a project.

A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.

Hence, project teams comprises individuals or group of people that come together as a unit to take on "one-time" tasks that are generally considered to be often complex and as such would require input from members with different types of training, skills, knowledge competence and expertise.

4 0
3 years ago
You are the owner of a smoothie shop in California. Afterhearing a podcast about customer relationship management (CRM), youdeci
Svetach [21]

Answer:

Average Customer Retention rate = 80%  

Average Value of Sales per year per customer = $120  

Average customer acquisition cost = Customer acquisition oriented market expenses per month/  

number of new customers acquired per month  

=\frac{1000}{25} = 40  

Average customer retention cost = $75  

CLV =[1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)  

= [1/(1-0.8)] x 120-(40+75)

=$485  

A) Average customer retention rate =90%  

B) Average value of sales per year per customer = $125  

C) Average customer acquisition cost =$60  

D) Average customer retention cost =$100  

CLV = [1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)  

= [1/(1-0.9)] x 125 - (60+100)

E) Customer Lifetime Value = 1090

Explanation:

Here are the spreadsheets.

3 0
3 years ago
If the demand for product x is inelastic, a 4 percent decrease in the price of x will.
NeTakaya

A 4 percent decrease in the price will lead to an increase in the quantity demanded by less than 4 percent.

<h3>What is demand?</h3>

Demand simply means the amount of goods and services that a buyer wants to buy at a particular price and time.

When the demand for product x is inelastic, a 4 percent decrease in the price of x will lead to an increase in the quantity demanded by less than 4 percent.

Learn more about demand on:

brainly.com/question/1245771

3 0
2 years ago
A company's fixed operating costs are $420,000, its variable costs are $3.20 per unit, and the product's sales price is $4.65. W
Hatshy [7]

Answer: The volume of sales that will result in a break-even point is 289,655 units

Explanation: For any organization or company to break-even means its total costs is just the same as its total revenue. This means no profit, and no loss either. Or better still, profit/loss equals zero.

The equation to determine the profit or otherwise of an organization is given as Revenue minus Cost. That is, the sales figure should exceed the cost of production, and the excess would be the profit. If on the other hand the cost of production exceeds the sales figure, then the equation would result in a negative figure which simply means a loss has been recorded.

In the question above, the costs have been given as;

Fixed cost = 420000

Variable cost = 3.2y

Total cost = 420000 + 3.2y

Where y is the number of units produced.

Also the revenue has been given as 4.65y

That is, sales price multiplied by number of units produced/sold

The profit is given as revenue minus cost while the break-even point is given as revenue equals cost, that is;

420000 + 3.2y = 4.65y

Collect like terms and you have;

420000 = 4.65y - 3.2y

420000 = 1.45y

Divide both sides by 1.45

289655.172 = y

y ≈ 289,655

Therefore the sales volume that will result in a break even point is 289,655 units

7 0
3 years ago
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