Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $28,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $55,000. By the end of the week, the company had manufactured 5,600 hockey sticks.1.Calculate the total prime cost for last week.$2. Calculate the per-unit prime cost. Round your answer to the nearest cent.$ per unit3. Calculate the total conversion cost for last week.$4. Calculate the per-unit conversion cost. Round your answer to the nearest cent.$ per unit

Answer:

1. Cost of goods manufactured =437,000.00

2. cost per hockey stick= $230

Explanation:

Total product cost: The sum of direct material cost, direct labour cost and overhead.

Direct material cost is the costs of all specific materials required to product a product. For example, cost of the flour, sugar used to produce cakes. Where there exist inventory of materials at the beginning and end of a period, the cost of material used is calculated as follows:

Cost of material used is calculated as = Opening stock + Purchases - closing stock

Direct labour cost : the cost of the man hours used directly for the purpose of production. The cost of hours paid to the tailors for making garments in a clothing factory . It is arrived as the active hours used for production × wage rate per hour.

Overhead : Sum of the indirect costs. These include expenditutures on materials , labour and expenses incurred not specifically for a particular product. Example are cost of toiletries used in a bakery, salaries of the security guard , rent of the bakery, e.t.c.

Opening working in progress represents accumulated production cost incurred on goods for which production commenced in a prior period but was not concluded. These items will need to be continued in the following period, hence further production costs would be incurred.

Closing working in progress this represents the cost production work for which work is yet to be completed as the end of the current period.

Working in Progress is adjusted on the production cost in the current period as follows to determine the production cost of the completed units as thus:

Cost of the goods manufactured =

opening WIP + production cost incurred in the period - closing W.I.P.

So we are not set to apply these explanation

Direct materials (132000+48,000-45,000)     135,000.00

Direct labour                                                  113,000.00

Manufacturing Overhead                            187,000.00

Add opening  W.I.P                                      65,000.00

less closing W.I.P                                             (63,000.00)

Cost of goods manufactured                                 437,000.00

Cost of one hockey stick =  cost of good manufactured / Hocky sticks produced

          =$ 437,000/1900 sticks

Cost per hockey stick=  $230

Final answer:

The cost of goods manufactured for Slapshot Company in June is $429,000. The cost of one hockey stick, given that 1,900 hockey sticks were produced in June, is approximately $225.79.

Explanation:

To determine the cost of goods manufactured, we need to add purchases, direct labor costs, and manufacturing overheads then subtract the change in materials inventory. Here, the purchases are $132,000, direct labor cost of $113,000, and manufacturing overhead is $187,000. The materials inventory decreased by $3,000 ($48,000 - $45,000). So, the total cost of goods manufactured is $429,000 ($132,000+$113,000+$187,000-$3,000).

To find the cost of one hockey stick, we just need to divide the cost of goods manufactured by the number of items produced. Therefore, if 1,900 hockey sticks were completed during June, each hockey stick costs $225.79 ($429,000 / 1,900).

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Answer:

a) rate of return = 0.095 = 9.5%

b) rate of return = 0.147143 = 14.7143%

Explanation:

a) using the constant growth model:

therefore

b) using the working from above, we showed that

given g= 10%, P0=28 and D0=1.2

Answer:

ending WIP physical units: 600

Equivalent units: 495

Explanation:

physical units:

We will add up the beginning units and the transferred-in.

Then we subtract the transefrred-out

beginning            900

received             1,600

total units during the period: 2,500

transferred out: (1,900)

ending:                600

To know the equivalent untis we multiply by their porcentage of completion:

900 x 55% = 495 units

Answer:

18.75%

Explanation:

Data provided in the question:

Total sales = $500,000

Net income = $30,000

Total assets = $250,000

Debt to total assets ratio = 0.36

Thus,

Total debt = 0.36 × $250,000

= $90,000

Shareholders equity = Total assets - Total debt

= $250,000 - $90,000

= $160,000

Now,

Return on equity = Net income ÷ Shareholders Equity

= [ $30,000 ÷ $160,000] × 100%

= 18.75%

Answer:

the average cost for inventory is $11.40

Explanation:

The computation of the average units for cost is shown below:

= Total purchase ÷ total purchase units

= (150 units × $10 + 350 units × $12) ÷ (150 units + 350 units)

= ($1,500 + $4,200) ÷ (500 units)

= ($5,700) ÷ (500 units)

= $11.40

Hence, the average cost for inventory is $11.40

We simply applied the above formula and the same is to be considered

Answer:

Opportunity Cost:

Opportunity cost can be denied as the benefit a person has received but giving up taking another course of action. In other words, it can be defined as the next best alternative.

Given that the Nike women's store earns a profit in excess of $437,000. The owner of the store pays $18,000 per month as rent. A real estate agent approached the owner and informed her that she could add $7,700 per month to her firm's profits by renting out the portion of her store that she uses as a fitness studio.

From the given question the opportunity cost of continuing to operate the fitness studio within the store is $7,700.