# Project #72043 - work

In this section of the report, you are asked to classify the product costs for the production of toka balls. Classify each cost as:

• fixed or variable
• direct or indirect

Complete the table and include it in your report. The management team will require justification for each cost (i.e. why you classified the costs as you did).

 Product Cost Variable Fixed Direct Indirect Electricity Real Estate Taxes Wood for toka sticks Leather to tie wood together Manufacturing Labor Water Lubricants for Machinery Equipment depreciation

PART 3: The third section of the report should contain your computations for the month of July based on the information given below. The following information is available for a GFI division that produces electronic scoreboards. These are special order products that use a job order cost accounting system. The management team wants to see your calculations in your responses.

 June 30 July 31 Inventories Raw materials 62,000 75,000 Goods in process 85,000 95,000 Finished goods 103,000 58,000 Activities and information for July Raw materials purchases by cash 510,000 Factory payroll by cash 745,000 Factory overhead Indirect materials 24,000 Indirect labor 132,000 Other overhead costs 220,000 Sales in cash 3,500,000 Predetermined overhead rate based on direct labor cost 52%

Compute the following amounts for the month of July.

1. Cost of direct materials used.
2. Cost of direct labor used
3. Cost of goods manufactured.
4. Cost of goods sold. (Do not consider any underapplied or overapplied overhead.)
5. Gross profit.

PART 4: In the last section of the report, the management team would like to know the profits they can expect from the two models of pitching machines they currently manufacture. The softball pitching machine and the hardball machine make up the entire product line. To help determine the profit of each individual product, the CFO wants overheads to be allocated back to the products. Total inspection costs are \$40,000.

The estimated production budget is as follows.

 Softball pitching machine Units 20 units Direct labor hours per unit 200 hours per unit Number of inspections 5 per unit

 Hardball pitching machine Units 20 units Direct labor hours per unit 200 hours per unit Number of inspections 15 per unit
1. Under a costing system that uses direct labor hours as a driver for the allocation, how much of the inspection costs would be allocated to softball machine?
2. Repeat the same question for hardball machine.
3. Using ABC and the number of inspections as a driver for allocation, recalculate the allocation for the softball machine.
4. Repeat the activity mentioned in question 3 for hardball machine.

Use Microsoft Excel to calculate your answers to the four questions and cut and paste the results into your report

 Subject Business Due By (Pacific Time) 05/27/2015 12:00 am
TutorRating
pallavi

Chat Now!

out of 1971 reviews
amosmm

Chat Now!

out of 766 reviews
PhyzKyd

Chat Now!

out of 1164 reviews
rajdeep77

Chat Now!

out of 721 reviews
sctys

Chat Now!

out of 1600 reviews

Chat Now!

out of 770 reviews
topnotcher

Chat Now!

out of 766 reviews
XXXIAO

Chat Now!

out of 680 reviews