Business
Perteet Corporation's relevant range of activity is 3,300 units to 7,500 units. When it produces and sells 5,400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.20 Direct labor $ 3.15 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 3.10 Fixed selling expense $ 0.60 Fixed administrative expense $ 0.30 Sales commissions $ 0.40 Variable administrative expense $ 0.45 If 4,200 units are produced, the total amount of manufacturing overhead cost is closest to: Multiple Choice $18,480 $29,970 $22,200 $15,540
Fillmore Industries is a vertically integrated firm with several divisions that operate as decentralized profit centers. Fillmore's Systems Division manufactures scientific instruments and uses the products of two of Fillmore's other divisions. The Board Division manufactures printed circuit boards (PCBs). One PCB model is made exclusively for the Systems Division using proprietary designs, while less complex models are sold in outside markets. The products of the Transistor Division are sold in a well-developed competitive market; however, one transistor model is also used by the Systems Division. The costs per unit of the products used by the Systems Division are as follows: PCB TransistorDirect materials 1,85 0,40Direct labor 4,20 0,90Variable overhead 2,40 0,70Fixed overhead 0,85 0,75Total Cost 9,30 2,75The Board Division sells its commercial product at full cost plus a 30 percent markup and believes the proprietary board made for the Systems Division would sell for $12 per unit on the open market. The market price of the transistor used by the Systems Division is $3.45 per unit.Required:1. What is the minimum transfer price for the Transistor Division? What is the maximum transfer price of the transistor for the Systems Division?2. Assume the Systems Division is able to purchase a large quantity oftransistors from an outside source at $2.75 per unit. Further assume that the Transistor Division has excess capacity. Can the Transistor Division meet this price?3. The Board and Systems divisions have negotiated a transfer price of $11 per printed circuit board. Discuss the impact this transfer price will have on each division.
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020 2021 2022 Beginning inventory $1,900 $2,200 $2,400 Ending inventory 2,200 2,400 2,500 Cost of goods sold 18,040 20,010 19,600 Sales revenue 41,000 42,300 42,240 (a) Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 2020 2021 2022 Inventory turnover enter an inventory turnoverenter an inventory turnover times
Let X be the damage incurred (in $) in a certain type of accident during a given year. Possible X values are 0, 1,000, 5,000, and 10,000, with probabilities 0.84, 0.09, 0.05, and 0.02, respectively. A particular company offers a $500 deductible policy. If the company wishes its expected profit to be $100, what premium amount should it charge (in dollars)
The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 659,000 Direct labor cost $ 88,000 Raw material purchases $ 135,000 Selling expenses $ 104,000 Administrative expenses $ 49,000 Manufacturing overhead applied to work in process $ 209,000 Actual manufacturing overhead costs $ 221,000 Inventories Beginning Ending Raw materials $ 8,600 $ 10,200 Work in process $ 5,400 $ 20,200 Finished goods $ 78,000 $ 25,600 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.
The 2021 income statement of Adrian Express reports sales of $20,710,000, cost of goods sold of $12,600,000, and net income of $1,980,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $840,000 $930,000 Accounts receivable 1,775,000 1,205,000 Inventory 2,245,000 1,675,000 Long-term assets 5,040,000 4,410,000 Total assets $ 9,900,000 $8,220,000 Liabilities and Stockholders' Equity Current liabilities $ 2,074,000 $1,844,000 Long-term liabilities 2,526,000 2,584,000 Common stock 2,075,000 2,005,000 Retained earnings 3,225,000 1,787,000 Total liabilities and stockholders' equity $9,900,000 $8,220,000 Industry averages for the following profitability ratios are as follows:Gross profit ratio 45 %Return on assets 25 %Profit margin 15 %Asset turnover 8.5 timesReturn on equity 35 %Required:1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)2. Do you think the company is more profitable or less profitable than the industry average?More profitableLess profitable