ACTG 4400 Lecture 6: Balanced Scorecard Template & Notes
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Rock Slide is a distributor that assembles power units. Using the material presented in Schedules A and Schedule B:
(1) Determine Rock Slideâs cost of goods sold and the ending inventory using the inventory costing methods of FIFO, LIFO, and Weighted Averages;
(2) Determine Rock Slideâs gross profit (margin) using the inventory costing methods of
FIFO, LIFO and Weighted Averages;
S c h e d u l e A A s s e m b l y o f P o w e r U n i t s Rock Slide
Assembly Activity | Units | Cost/Unit | Total Cost |
Beginning Inventory 1/1/12 | 70 | $105 | $7,350 |
Assembly Units Placed Into Inventory | |||
2/15/12 | 85 | $110 | $9,350 |
4/20/12 | 90 | $112 | $10,080 |
9/18/12 | 65 | $112 | $7,280 |
11/16/12 | 110 | $112 | $12,320 |
12/20/12 | 80 | $120 | $9,600 |
Total Assembled Units Available for Sale- 2012 | 500 | $55,980 |
Schedule B
Sales of Power Units Rock Slide
Sales Activity | Units | Unit Sales Price | Total Sales |
1/15/12 | 60 | $145 | $8,700 |
3/20/12 | 80 | $150 | $12,000 |
5/2/12 | 100 | $150 | $15,000 |
10/8/12 | 60 | $150 | $9,000 |
11/30/12 | 110 | $150 | $16,500 |
12/28/12 | 30 | $175 | $5,250 |
Total 2012 Sales | 440 | $66,450 |
1. The following is a list of various costs of producingT-shirts. Classify each cost as either a variable, fixed, or mixedcost for units produced and sold.
(a) | Leather used to make a handbag. |
(b) | Warehouse rent of $8,000 per month plus $.50 per square foot ofstorage used. |
(c) | Thread. |
(d) | Electricity costs of $.038 per kilowatt-hour. |
(e) | Janitorial costs of $4,000 per month. |
(f) | Advertising costs of $12,000 per month. |
(g) | Accounting salaries. |
(h) | Color dyes for producing different colors of sweatshirts. |
(i) | Salary of the production supervisor. |
(j) | Straight-line depreciation on sewing machines. |
(k) | Patterns for different designs. Patterns typically last manyyears before being replaced. |
(l) | Hourly wages of sewing machine operators. |
(m) | Property taxes on factory, building, and equipment. |
(n) | Cotton and polyester cloth. |
(o) | Maintenance costs with sewing machine company. The cost is$2,000 per year plus $.001 for each machine hour of use. |
2. Copper Hills manufactures laser printers within a relevantrange of production of 70,000 to 100,000 printers per year. Thefollowing partially completed manufacturing cost schedule has beenprepared:
Number of Printers Produced | |||
70,000 | 90,000 | 100,000 | |
Total costs: | |||
Total variable costs | $350,000 | (d) | (j) |
Total fixed costs | 630,000 | (e) | (k) |
Total costs | $980,000 | (f) | (l) |
Cost per unit: | |||
Variable cost per unit | (a) | (g) | (m) |
Fixed cost per unit | (b) | (h) | (n) |
Total cost per unit | (c) | (i) | (o) |
Complete the preceding cost schedule, identifying each cost bythe appropriate letter (a) through (o).
3. For the current year ending April 30, Haley Company expectsfixed costs of $60,000, a unit variable cost of $70, andanticipated break-even of 1,715 sales units.
(a) | Compute the unit sales price. |
(b) | Compute the sales (units) required to realize an operatingprofit of $8,000. |
Round your answer to the nearest whole number.
4. Currently, the unit selling price is$50, the variable cost, $34, and the total fixed costs, $108,000. Aproposal is being evaluated to increase the selling price to$54.
(a) | Compute the current break-even sales (units). |
(b) | Compute the anticipated break-even sales (units), assuming thatthe unit selling price is increased and all costs remainconstant. |
5. For the coming year, Reve Companyestimates fixed costs at $109,000, the unit variable cost at $21,and the unit selling price at $85. Determine (a) the break-evenpoint in units of sales, (b) the unit sales required to realizeoperating income of $150,000 and (c) the probable operating incomeif sales total $500,000.
Round units to the nearest whole number and percentage to onedecimal place.
1. The following is a listof various costs of producing T-shirts. Classify each cost aseither a variable, fixed, or mixed cost for units produced andsold.
(a) | Leather used to make a handbag. |
(b) | Warehouse rent of $8,000 per month plus $.50 per square foot ofstorage used. |
(c) | Thread. |
(d) | Electricity costs of $.038 per kilowatt-hour. |
(e) | Janitorial costs of $4,000 per month. |
(f) | Advertising costs of $12,000 per month. |
(g) | Accounting salaries. |
(h) | Color dyes for producing different colors of sweatshirts. |
(i) | Salary of the production supervisor. |
(j) | Straight-line depreciation on sewing machines. |
(k) | Patterns for different designs. Patterns typically last manyyears before being replaced. |
(l) | Hourly wages of sewing machine operators. |
(m) | Property taxes on factory, building, and equipment. |
(n) | Cotton and polyester cloth. |
(o) | Maintenance costs with sewing machine company. The cost is$2,000 per year plus $.001 for each machine hour of use. |
2. Copper Hillsmanufactures laser printers within a relevant range of productionof 70,000 to 100,000 printers per year. The following partiallycompleted manufacturing cost schedule has been prepared:
Number of Printers Produced | |||
70,000 | 90,000 | 100,000 | |
Total costs: | |||
Total variable costs | $350,000 | (d) | (j) |
Total fixed costs | 630,000 | (e) | (k) |
Total costs | $980,000 | (f) | (l) |
Cost per unit: | |||
Variable cost per unit | (a) | (g) | (m) |
Fixed cost per unit | (b) | (h) | (n) |
Total cost per unit | (c) | (i) | (o) |
Complete the preceding cost schedule, identifying each cost bythe appropriate letter (a) through (o).
3. For the current year ending April 30, HaleyCompany expects fixed costs of $60,000, a unit variable cost of$70, and anticipated break-even of 1,715 sales units.
(a) | Compute the unit sales price. |
(b) | Compute the sales (units) required to realize an operatingprofit of $8,000. |
Round your answer to the nearest whole number.
4. Currently, the unitselling price is $50, the variable cost, $34, and the total fixedcosts, $108,000. A proposal is being evaluated to increase theselling price to $54.
(a) | Compute the current break-even sales (units). |
(b) | Compute the anticipated break-even sales (units), assuming thatthe unit selling price is increased and all costs remainconstant. |
5. For the coming year,Reve Company estimates fixed costs at $109,000, the unit variablecost at $21, and the unit selling price at $85. Determine (a) thebreak-even point in units of sales, (b) the unit sales required torealize operating income of $150,000 and (c) the probable operatingincome if sales total $500,000.
Round units to the nearest whole number and percentage to onedecimal place.