NEED IN ONE HOUR OR LESS
1. The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just-completed year.
Sales ..........................................................................$1,950
Raw materials inventory, beginning ..........................$50
Raw materials inventory, ending ................................$30
Purchases of raw materials ........................................$360
Direct labor ..................................................................$120
Manufacturing overhead ..........................................$175
Administrative expenses ............................................$100
Selling expenses ..........................................................$140
Work-in-process inventory, beginning .....................$50
Work-in-process inventory, ending ...........................$70
Finished goods inventory, beginning ......................$200
Finished goods inventory, ending ............................$105
Use these data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, elaborate on the relationship between these schedules as they relate to the flow of product costs in a manufacturing company.
Matuseski Corporation is preparing its cash budget for October. The budgeted beginning cash balance is $54,000. Budgeted cash receipts total $127,000 and budgeted cash disbursements total $99,000. The desired ending cash balance is $100,000. The company can borrow up to $150,000 at any time from a local bank, with interest not due until the following month.
Required: Prepare the company's cash budget for October in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.
The following overhead data are for a department of a large company.
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Actual Costs Incurred
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Static Budget
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Activity level (in units)
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360
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340
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Variable costs:
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Indirect materials
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$4,182
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$4,148
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Electricity
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$2,536
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$2,414
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Fixed costs:
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Administration
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$6,540
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$6,500
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Rent
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$6,310
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$6,400
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Required: Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department.
Madlem, Inc., produces and sells a single product whose selling price is $280.00 per unit and whose variable expense is $168.00 per unit. The company's fixed expense is $201,600 per month.
Required: Determine the monthly break-even in either unit or total dollar sales. Show your work!
Wahr Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor hours for the upcoming year at 35,000. The estimated variable manufacturing overhead was $7.25 per labor hour and the estimated total fixed manufacturing overhead was $585,000. The actual labor hours for the year turned out to be 33,000.
Required:
Compute the company's predetermined overhead rate for the recently completed year.