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goldenfox [79]
3 years ago
9

Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department

T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 100 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows: Baseball Bats Tennis Rackets Sales revenue $ 1,580,000 $ 1,125,000 Direct labor 320,000 160,000 Direct materials 564,000 293,000 Required: a. Compute the profit for each product using plantwide allocation.
Business
1 answer:
m_a_m_a [10]3 years ago
6 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

The rate used is 100 percent of direct labor costs.

Baseball Bats - Tennis Rackets:

Sales revenue= $ 1,580,000 $ 1,125,000

Direct labor= 320,000 160,000

Direct materials= 564,000 293,000

First, we need to allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Baseball= 320,000*1= 320,000

Tennis= 160,000*1= 160,000

Baseball:

Sales= 1,580,000

COGS= (320,000 + 564,000 + 320,000)= (1,204,000)

Gross profit= $376,000

Tennis:

Sales= 1,125,000

COGS= (160,000 + 293,000 + 160,000)= (613,000)

Gross profit= $512,000

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Alona [7]

Answer:

   S/N              ACCOUNT                                 DEBIT                  CREDIT

      1             Equipment                                   $22,000

                        Cash                                                                     $22,000  

                    Being payment for new component expected to increase the

                    equipment’s productivity by 10% a year

      2.           Equipment Repairs expenses      $6,250

                       Cash                                                                          $6,250

                    Being payment for equipment repair

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                    Being payment for equipment repair to prolong the useful life

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Explanation:

The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.

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The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is  expected to increase the equipment’s productivity by 10% a year.

The  $6,250  paid for normal repair is a revenue items which is to be expensed against the earning of that period.

The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.

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Answer:

The delivery cycle time was 26.9

Explanation:

The delivery cycle time is computed as:

Delivery cycle time = Wait time + Throughput time

where

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The formula for computing the throughput time is as:

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where

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Inspection time is 0.3

Putting values above:

Throughput time = 3.3 + 2.7 + 7.0 + 0.3

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Delivery cycle time = 13.6 + 13.3

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Answer:

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