Accounting for excellent

Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:

  Selling price

$

173  

  Units in beginning inventory

0  

  Units produced

3,510  

  Units sold

3,240  

  Units in ending inventory

270  

  Variable cost per unit:

  Direct materials

$

47  

  Direct labor

$

56  

  Variable manufacturing overhead

$

12  

  Variable selling and administrative

$

14  

  Fixed costs:

  Fixed manufacturing overhead

$

108,810  

  Fixed selling and administrative

$

9,720  

Required:

a.

What is the unit product cost for the month under variable costing? (Do not round intermediate calculations. Omit the "$" sign in your response.)

Cost per unit

  Variable costing

$   

b.

What is the unit product cost for the month under absorption costing? (Omit the "$" sign in your response.)

Cost per unit

  Absorption costing

$   

c.

Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Variable Costing Income Statement

$  

  Variable expenses:

$   

  Fixed expenses:

$  

d.

Prepare an income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Absorption Costing Income Statement

$  

  Selling and administrative expenses:

$  

$  

e.

Reconcile the variable costing and absorption costing net operating incomes for the month. (Omit the "$" sign in your response.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes

  Variable costing net operating income

$  

  :

  Absorption costing net operating income

$  

Yoke Corporation has provided the following data from its activity-based costing accounting system:

  Supervisory wages

$

83,200  

  Factory Utilities

$

337,000  

Distribution of Resource Consumption across Activity Cost Pools:

   Activity Cost Pools

  Batch set-ups

  Unit Processing

  Other

  Total

  Supervisory wages

60

%

37

%

3

%

100

%

  Factory Utilities

33

%

59

%

8

%

100

%  

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.

Required:

a.

Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the unit Processing activity cost pool. (Omit the "$" sign in your response.)

  Total amount

$  

b.

Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Other cost pool. (Omit the "$" sign in your response.)

  Total amount

$  

Randall Company is a merchandising company that sells a single product. The company's inventories, production, and sales in units for the next three months have been forecasted as follows:

October

November

December

  Beginning inventory

12,000   

12,000   

12,000   

  Merchandise purchases

62,000   

72,000   

37,000   

  Sales

62,000   

72,000   

42,000   

  Ending inventory

12,000   

12,000   

7,000   

Units are sold for $11 each. One fourth of all sales are paid for in the month of sale and the balance are paid for in the following month. Accounts receivable at September 30 totaled $452,000.

Merchandise is purchased for $6 per unit. Half of the purchases are paid for in the month of the purchase and the remainder are paid for in the month following purchase. Selling and administrative expenses are expected to total $122,000 each month. One half of these expenses will be paid in the month in which they are incurred and the balance will be paid in the following month. There is no depreciation. Accounts payable at September 30 totaled $292,000 includes selling and administrative payables.

Cash at September 30 totaled $82,000. A payment of $302,000 for purchase of equipment is scheduled for November, and a dividend of $202,000 is to be paid in December.

Required:

a.

Prepare a schedule of expected cash collections for each of the months of October, November, and December. (Omit the "$" sign in your response.)

Schedule of Expected Cash Collections

October

November

December

  Sales

$  

$  

$  

  September accounts receivable

$  

  October sales

$  

  November sales

$  

  December sales

  Total cash collections

$  

$  

$  

b.

Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses for each of the months October, November, and December. (Omit the "$" sign in your response.)

Schedule of Expected Cash Disbursements

October

November

December

  Merchandise purchases

$  

$  

$  

  Selling and administrative expenses

  Total incurred

$  

$  

$  

  Disbursements, previous month

$  

$  

$  

  Disbursements, current month

  Total

$  

$  

$  

c.

Prepare a cash budget for each of the months October, November, and December. There is no minimum required ending cash balance.  (Input all amounts as positive values. Omit the "$" sign in your response.)

Randall Company Cash Budget

October

November

December

  Beginning cash balance

$  

$  

$  

  Add cash receipts

  Total cash available

$  

$  

$  

  Disbursements

       Accounts payable

       Payment for equipment

       Payment for dividend

  Total disbursements

  Ending cash balance

$  

$  

$  

Tajiri Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of May:

Tajiri Corporation Comparison of Planning Budget to Actual Results For the Month Ended May 31

Planning Budget

Actual Results

Variances

  Customers served

34,000  

35,000  

  Revenue (3.50q)

$

119,000  

$

122,600  

$

3,600

 F

  Expenses:

     Wages and salaries ($23,400 + $1.24q)

65,560  

66,800  

1,240

 U

     Supplies ($0.64q)

21,760  

19,560  

2,200

 F

     Insurance ($5,300)

5,300  

5,300  

0

     Miscellaneous ($4,300 + $.33q)

15,520  

13,320  

2,200

 F

     Total expense

108,140  

104,980  

3,160

 F

  Net operating income

$

10,860  

$

17,620  

$

6,760

 F

Required:

1.

Complete the company's flexible budget performance report for May. Label each variance as favorable (F) or unfavorable (U). (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Tajiri Corporation

Flexible Budget Performance Report Part 1 & 2

For the Month Ended May 31

Planning Budget

Activity Variances

Flexible Budget

Revenue and Spending Variances

Actual Results

  Customers served

34,000  

35,000  

  Revenue

$

119,000  

$

$  

$

$

122,600  

  Expenses:

  Wages and salaries

65,560  

66,800  

  Supplies

21,760  

19,560  

  Insurance

5,300  

5,300  

  Miscellaneous

15,520  

13,320  

  Total expense

108,140  

104,980  

  Net operating income

$

10,860  

$

$  

$

$

17,620