Assignment 3: Excel Problems

PF|6A.17B Corniltng ecnrhdont units md asdgning cosb to 99.pt"t"q

qdll md-enoine

work in pro;tss; no beginnhg h"'s"toty or cogt trarrierred ln [3045 minl

Sue Lllectronics rnakes tlD plqvets in rhrce Pr()ccsses: assernblv. prograrnming' arrd

packaging. Dircct materiafs are adricd at thc b"g,rnnrng of thc assemhly.process.

( . o n r , e r s i o ' r c o s r s a r e i n c u r r e d e v e n l y t h r o u g h o u t t h e p r o c e s s . T h e - . A s s e m h l y

l)cparrrnenr had no work irr proccss on ivlarch .11. ln mid-Apr1l, -^l-ue Flcctronics

irrrt.a proar.A,rn on 100,00O CD playerr. Of this n,mber' 76'100 C[) pla-vers wcre

assernh|ed during April anc| t,"n,i..,"d out to the Programming Department. The

April .}0 work in process in the Asscmb[y L)epartmen: \^:a't 40.}; of the wav throug'h

the assernhly p.o.:"rr. f)irect materials costrng $.1'5,720 were placcd irr prgductiorr

in Asscmbly,f'".irg Aptil. a'cl 4ircct labor .f i t SU 'ZOO and ma'ufacturing .r'crhcad

of $98..505 were assigncd to that department'

Requhernentg 1. f)raw a time linc for thc- Assenrhly f)epartment'

2. tlse the tinre line to hclp you compute thc rrumfrer of equrvalerrr units and the

cosr pcr cquivalcnt unit ln-thc r\sscrnhh' [)cpartmcnt for April.

3. Assig,n roral costs in the Assembly Departntent to (a) unrts conrpleted arrd-trans-

f"rr"a to-n..rg.amming durirrg Airil and (h) units still in proccss at April 30'

4. Prcparc a T-account for work in Process lrrvcntory-Asscmbly to show its activ'

itli ugl!lg-$p11l inc l ud r ng*t i'g {11 ff !'l 0 ba I a nce'-."

PIGA-i9B Cornptrtktg eq.dvabnt units and assignirB costs to complatcd rnits ad cnding wlP invcntory; two meitcrials, addcd at difiorcnt poants; rn bcgiming inrcntory or costtranEfsrcd in [30-{5 minl Rrxrt's l.xtcriors pnrduces exterior siding tor htrmcs. The Preparanon l)cpartmenr bcg,rns wirh r,r,rxxJ, which is chopgxd inro small birs. Ar thc cncl ot thc prixcss, an adhcsrve is addecl. Then the woodladhesive rnixrure g()es on rtr rhc (,ompression f)epartment, whcrc thc lv<xtd is eompre'ssed into sheets. (irnversion c{)sts irrr addq.l $ ' c n l v r h r n u g h o u t t h e p r e p a r a t i o n p r o c e s $ . l l l a r c h d a u l r i r t h c l ) r e p a r a t r o n f ) c p a r t m e n c a r e a s f o l l o u i ( i n m i l l i o n s ) :

&ginnirg rnolt in gwrs.invcm*y Srerted prodrrtion C,omph*d and tndrrrtd an to

Compression in March

+,*ie 3,300 slrccts

1.9(X) sheets

bprocsArrrto*y Ccts adding dunr4, Marchr

'V6od

Adhesivcs

DirtclaSor

$ 0

zr6fio I,3{',5

64 2.145

$ 7,050 ; Ending urork m proccss invcnmry 145% i_

! of thc rry drn4b tbe pcpcrrdm proml B t,{00 I Manufacturingoetrhcad

cks NTmlccsr

fr et*zoe

hqulrunrcntr

l. l)rarv a time line for rhe Preparation l)epartment.

2. LIse the timc line nr help v()u c(rmpute the equivalent. ltlrnt: Eaeh drrecr material addod at a differcnr point in rhe production pro(:ess requrres rr\ ()wr.r equivalenr- r r n i t c o r n p u r a r i o n . )

3. (irmpure the total crxrs ol the unirs (shet-rs) a. Complercd irnd transfcrrcd out nr rhc (.ompressmn l)cpanmcnr. b. In rhe Prepararion Departmenr's tnding work in procEss irrvenrory.

4. Prt'pare rhc iournal enrv to rc.c'ord thc cosr of thc shetrs complertd and rrans- terred out ro the (,nmprrssion Depanment.

5' Prxt thc iournal cntrics ro thc V/ork in pr<xess invantory-l)rcparirtr()n T,accrrunr. W h a t i s r h e e n d i n g t r a l a n c c ?

(L. OBI.2, .t) Brcak cvcn 6al€s; salos to oam a ttrg.t operdng lncoma; csrt'ihrtion mrgin hcsne statern€nt [fl]-45 minl Brirish Prrxluctions pcrforms London shorvs. The avcrage shorv sr'lls 1.200 ricktrs ar $.i0 per tic'ket. There arc 12{) shorvs a vcar. The average show has a casr oi 70, each taming, an averag,e of Sl(Xl per sht-nv. The casr is paid afrer each shou'. The other v a r i a b l e c o s t i s a p r o g r a m - p r i n r i n g c o s r o f 5 7 J r c r g u c s r . A n n u a l i i x c d c o s r s r o r a l $4.t9.000.

Raqubanrentr

t. Compure revrylur and variable crxrs for cach shor,r'.

2. Llse the income staaernent equation approach t() c{)mputc the numbcr oi shows British Productions must pcrform caeh ycar to hreak cvcn.

3. Llse the contrrburion maryin approach to computc rhe numbcr of shorvs needed c a c h v c a r t o c a r n a p r o f i t o f $ 3 . 8 2 5 , 0 ( X ) . I s t h i s p r o f i t g o i r l r e a l i s t i c ? C i v e v o u r r c a s o n i n g .

4 . ' P r c p a r c B r i r i s h P r o i l u c t i o n s ' c o n r r i b u t i o n m a r g i n i n c o m c s t a t c m c n t f o r 120 shows firr 201 l. Re;xrrt only trvo categ,ories oi costs: variablc and fixed.

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