Author: Anonymous

Colorado Corporation has the following sales forecast for the next quarter: ​ July, 4,000 units; August, 4,800 units; September, 5,600 units ​ Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of the next month’s planned sales. Records showed that each unit is budgeted at 2 pounds of materials costing $3 per pound. Direct labor was budgeted at .5 direct labor hours per unit at a wage of $20 per hour. Budgeted variable overhead is $1.50 per direct labor hour. Fixed overhead is budgeted at $250,000 for the year, and 50,000 units are expected to be produced. ​ The beginning finished inventory is valued at $31,320. ​ After preparing a finished goods inventory budget for August, what is the cost of goods sold for August?

A flexible-based budgeting system

Abnormal spoilage is treated differently from normal spoilage in what way?

Activity-based budgeting recognizes interdependencies among departments.

Fantasmas Incorporated had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         20    — Setups  1,200    60 Engineering hours     52 1,500       Other data:         Total fixed costs (traditional) $600,000       Total fixed costs (ABC) $360,000       Unit selling price      $         60   ​ What is the break-even point in units using ABC?

In a __________ costing system, production costs are accumulated by process.

A __________ budget is developed around one particular level of activity.

Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost measurement is the recognition and recording of costs.

Information about the Harmonious Company’s two products includes: ​   Product X Product Y Unit selling price $11.25 $11.25 Unit variable costs:         Manufacturing $  5.25 $  6.75     Selling    .75     .75 Total $  6.00 $  7.50       Monthly fixed costs are as follows:         Manufacturing $  82,500       Selling and administrative     45,000   Total $127,500   ​ What is the total monthly sales volume in units required to break even when the sales mix in units is 70 percent Product X and 30 percent Product Y?

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information:   ​ Large Larger ​ Work Order 10 Work Order 11 Direct materials (actual costs) $45,000 $75,000 ​ ​ ​ Applied conversion costs: ​ ​ Mixing ? ? Cooking $12,000 $12,000 Bottling $10,000 $15,000 ​ ​ ​ Batch size (bottles) 5,000 5,000 ​ In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What is Golden Ring Company’s journal entry to apply conversion costs in the Mixing Department for Work Order 10?