Explain the impact on unit product costs of the switch in costing systems.


All work must be shown to receive any credit

Question 26:Learned Corporation recorded the following transactions for the just completed month.

a.$80,000 in raw materials were purchased on account.

b.$71,000 in raw materials was requisitioned for use in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.

c.Total labor wages of $112,000 were incurred. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.

d.Additional manufacturing overhead costs of $175,000 were incurred.


Record the above transactions in journal entries.

Question 27:Midwest Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 50,000 units next year and Product L is expected to sell 10,000 units. A unit of either product requires 0.2 direct labor hours.

The company’s total manufacturing overhead for the years is expected to be $1,920,000.


1.The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this is followed, how much overhead cost would be applied to each product? Compute both the overhead cost per unit and the total amount of overhead cost that would be applied to each product. (In other words, how much overhead cost is applied

to a unit of Product H? Product L? How much overhead cost is applied in total to all the units of Product H? Product L?)

2.Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $960,000 assigned to Product H and $960,000 assigned to Product L.

If this is followed, how much overhead cost per unit would be applied to each product?

3.Explain the impact on unit product costs of the switch in costing systems.

Question 28:Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses processing costs, appear below.



Equivalent units of production in ending work in process



Cost per equivalent unit



A total of 20,100 units were completed and transferred to the next processing department during the period.


Compute the cost of the units transferred to the next department during the period and the cost of the ending work in process inventory.

Question 29:Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total and per unit costs over the relevant range of 30,000 to 50,000 units produced and sold annually is given below:

Units Produced and Sold




Total Costs:

Variable costs




Fixed costs




Total Costs



Cost per unit:

Variable cost




Fixed cost




Total cost per unit





1.Complete the schedule of the company’s total and unit costs above.

2.Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribution format Income Statement for the year.

Question 30:Whirly Corporation’s most recent Income Statement is shown below:


Per Unit

Sales (10,000 units)



Variable expenses



Contribution Margin



Fixed expenses


Net Operating income

$ 15,000


Prepare a new contribution format Income Statement under each of the following conditions (consider each case independently):

1.The sales volume increases by 100 units.

2.The sales volume decreases by 100 units.

3.The sales volume is 9,000 units.

Question 31:Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:





Budgeted sales (all on account)





From past experience, the company has learned that 20% of a month’s sales are collected in the month of the sale, another 70% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000.


1.Prepare a schedule of expected cash collections from sales, by month and in total for the second quarter.

2.Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.

Question 32:Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:

Puget Sound Divers

Planning Budget

For the Month Ended May 31

Budgeted diving-hours (q)……………………


Revenue ($365.00q)……………………………



Wages and salaries ($8,000 + 125.00q)……..


Supplies ($3.00q)……………………………


Equipment rental ($1,800 + $32.00q)……….


Insurance ($3,400)…………………………..


Miscellaneous ($630 + $1.80q)……………..


Total expense………………………………….


Net operating income………………………….

$ 6,490


During May, the company’s activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity.

Question 33:Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers – the number of cruises and the number of passengers – that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 80 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below:

Fixed Cost

Per Month

Cost per


Cost per


Vessel operating costs……..






Administrative costs………


$ 24.00




For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company’s sales should average $25 per passenger. The company’s planning budget for July is based on 24 cruises and 1,
400 passengers.

Homework Market
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Homework Market


Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Homework Market

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.


Unlimited Revision

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.


Timely Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.


Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.


Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Homework Market

Place your order

Fill in the order form and provide all details of your assignment.

Homework Market

Proceed with the payment

Choose the payment system that suits you most.

Homework Market

Receive the final file

Once your paper is ready, we will email it to you.

Homework Market Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HomeworkMarket HomeworkMrket


Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HomeworkMarket HomeworkMarket


Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HomeworkMarket HomeworkMarket


Essay Editing

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HomeworkMarket HomeworkMarket

Research Paper

Research Paper

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.