Blackmon construction builds vacation homes in the Colorado Mountains.  The company has developed the following value chart: Operations      ...

Blackmon construction builds vacation homes in the Colorado Mountains.  The company has developed the following value chart:

Operations                                                                                    Avg. Number of Days

Receiving material                                                                                               4   

Storing materials                                                                                                12

Measuring and cutting materials                                                                      8

Handling materials                                                                                              6

Setting up and moving scaffolding                                                                   5

Assembling materials                                                                                          4

Building fireplace                                                                                               11     

Pegging logs                                                                                                          5

Cutting and framing doors and windows                                                        3           

Sealing joints                                                                                                        4

Waiting for county inspectors                                                                           5 

Inspecting property                                                                                             2

What are the value-added activities total times?

35

49

41

36

Using the same information as Question #19, what are the non-value added activities total time?

40

51

39

34

Short Answers:  For each question below, please show as much work as possible as the you can receive partial credit for your work and the answers you give.

Ralph Lauren makes summer dresses for women.   The following information was gathered from the company records for 2013, the first year of company operations.  Work in process inventory at the end of 2013 was $15,500.

Direct Material purchased on account$ 650,000

Direct Material issued to production                                           440,000

Direct Labor payroll accrued   305,500 

Indirect labor payroll accrued       92,000 

Prepaid factory insurance expired       6,000

Factory utilities paid     21,500

Depreciation on factory equipment recorded                                                                     35,500  

Factory rent paid   155,000

Sales              1,250,000

             The company’s gross profit rate for the year was 25 percent of sales.

Compute the cost of goods sold for 2013?

What was the total cost of goods manufactured for 2013?

What is the Finished Goods Inventory at December 31, 2013?

If Net Income was $105,000, what were total selling and administrative expenses for the year?

Lynx Inc. has a total of 2,350,000 in production overhead costs.  The company’s products and related statistics follow.

                                                                                               Product A                       Product B

Direct material in pounds                                                    145,500                          180,500   

Direct labor hours                                                                   28,000                            35,500  

Machine hours                                                                         50,500                            25,000               

Number of setups                                                                        400                                  800     

Number of units produced                                                    12,500                              5,500

Total direct material costs was 525,000 and 300,000 units were produced.  One direct labor hour is $10.

Assume Lynx uses machine hours to apply overhead to products.  Determine the total cost for each product and the cost per unit.

Assume Lynx uses number of setups to apply overhead to products.  Determine the total cost for each product and the cost per unit.

 DONE BY 12pm tomorrow or earlier.