Sheffield's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan area. The company's best-selling cookie is the double chocolate almond supreme. Sheffield's recipe requires 10 ounces of a commercial cookie mix, 5 ounces of milk chocolate, and 1 ounce of almonds per pound of cookies. The standard direct materials costs are $0.80 per pound of cookie mix, $4 per pound of milk chocolate, and $19 per pound of almonds. Each pound of cookies requires 1 minute of direct labor in the mixing department and 5 minutes of direct labor in the baking department. The standard labor rates in those departments are $12.70 per direct labor hour (DLH) and $27 per DLH, respectively. Variable overhead is applied at a rate of $37.00 per DLH; fixed overhead is applied at a rate of $60 per DLH.Required:
1. Calculate the standard cost for a pound of Sheffield's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.)

Answers

Answer 1

Answer:

The Standard cost for a pound of Sheffield's double chocolate almond supreme cookies in the above case is $15.10.

What is the standard cost?

A standard cost is defined as an anticipated cost that a company commonly launches at the starting of a fiscal year for amounts used and prices paid.

It is an anticipated amount of money to pay off for materials costs or labor rates. The standardquantity is the anticipated exercise amount of materials or labor.

Computation of standard cost:

According to the given information,

Standard direct materials costs = $0.80 per pound of cookie mix.

Per pound of milk chocolate = $4, and

Per pound of almonds = $19.

Total ounces:

$\text{Total Ounce} = \text{Commercial cookies Mix+ Milk Chocolate+Almonds}\n\n\text{Total Ounce} = 10 + 5 + 1\n\n\text{Total Ounce} = 16$

Then, Standard Material Cost:

$=((10)/(16)* 0.80)+((5)/(16)*4) +((1)/(16) * 19)\n\n=2.9375$

Now, 1 minute of direct labor is required in the mixing department and 5 minutes of direct labor in the baking department. Then the standard direct labor cost is:

$\text{Standard Direct Labor Cost} = ((1)/(60)* 12.70) +((5)/(60) * 27)\n\n\text{Standard Direct Labor Cost} = \$2.4617$

Variable overhead is applied at a rate = $37.00 per direct labor hour

Now, find the value of Standard Variable overhead cost:

$\text{Standard Variable Overhead Cost} = (6)/(60)* 37\n\n\text{Standard Variable Overhead Cost} =\$3.70$

Now, Standard Fixed overhead cost:

$\text{Standard Fixed Overhead Cost} = (6)/(60)* 60\n\n\text{Standard Fixed Overhead Cost} =\$6$

Therefore, Standard cost for a pound:

$=\text{ Standard Direct Labor Cost}+\text{Standard Variable Overhead Cost}+\text{ Fixed Overhead Cost}\n\n=\$2.9375 + \$2.4617 + \$3.70 + \$6\n\n=\$15.10$

Therefore, Standard cost for a pound is $15.10.

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Answer 2

Answer:

Answer:

The Standard cost for a pound of Sheffield's double chocolate almond supreme cookies is $15.10

Explanation:

The standard direct materials costs are $0.80 per pound of cookie mix, $4 per pound of milk chocolate, and $19 per pound of almonds.

Total ounces = 10 + 5 + 1 = 16

Standard Material Cost = ( $(10)/(16)$ × 0.80) + ( $(5)/(16)$ × 4) + ( $(1)/(16)$ × 19)

Standard Material Cost = $ 2.9375

Each pound of cookies requires 1 minute of direct labor in the mixing department and 5 minutes of direct labor in the baking department.

Standard Direct Labor Cost = $(1)/(60)$ × 12.70 + $(5)/(60)$ × 27

Standard Direct Labor Cost = $2.4617

Variable overhead is applied at a rate of $37.00 per direct labor hour

Standard Variable overhead cost = 6/60 × 37

Standard Variable overhead cost = $ 3.70

Standard Fixed overhead cost = 6/60 × 60

Standard Fixed overhead cost = $ 6

Standard cost for a pound = $2.9375 + $2.4617 + $3.70 + $6

Standard cost for a pound = $15.10

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The 15-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $1,085, and the market's required yield to maturity on a comparable-risk bond is 10 percent. a. Compute the bond's yield to maturity.
b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond.
c. Should you purchase the bond?

Answers

Answer:

A) YTM 7.06%

B) $847.8784

C) No I will not as it is overpriced.

Explanation:

A) the yield to maturity is calculate as the rate at which the present value of the coupon payment and maturity equals the market price.

It is done by approximation or using excel or financial calculator.

YTM using goal seek excel: 0.070630268 = 7.06%

Using this rate rounded:

Present value of the coupon payment.

$C * (1-(1+r)^(-time) )/(rate) = PV\n$

C: 1,000 x 8% = $ 80.00

time 15 years

YTM: 0.076

$80 * (1-(1+0.0706)^(-15) )/(0.0706) = PV\n$

PV $725.8798

$(Maturity)/((1 + rate)^(time) ) = PV$

Maturity: $1,000

time 15 years

YTM: 0.076

$(1000)/((1 + 0.0706)^(15) ) = PV$

PV 359.41

PV coupon $725.8798 + PV maturity $359.4110 = $1,085.2909

B) Present value of the bond at comparable-risk YTM:

$C * (1-(1+r)^(-time) )/(rate) = PV\n$

C: 1,000 x 8% = $ 80.00

time 15 years

comparable risk rate: 0.1

$80 * (1-(1+0.1)^(-15) )/(0.1) = PV\n$

PV $608.4864

$(Maturity)/((1 + rate)^(time) ) = PV$

Maturity $ 1,000.00

time 15 years

comparable risk rate: 0.1

$(1000)/((1 + 0.1)^(15) ) = PV$

PV 239.39

PV coupon $608.4864 + PV market $239.3920 = $847.8784

I will not purchase as it is overvalued:

1,085 - 847.88= 237.12

Final answer:

a. The bond's yield to maturity is 8.46%. b. The value of the bond to you is $800. c. It may not be a good investment to purchase the bond.

Explanation:

a. To compute the bond's yield to maturity, we can use the formula: Yield to Maturity = (Annual Interest Payment + (Face Value - Current Price) / Number of Years) / ((Face Value + Current Price) / 2). Plug in the values we have: Annual Interest Payment = $1,000 * 8% = $80, Face Value = $1,000, Current Price = $1,085, Number of Years = 15. Yield to Maturity = ($80 + ($1,000 - $1,085) / 15) / (($1,000 + $1,085) / 2) = 8.46%.

b. To determine the value of the bond to you, we can use the formula: Value of Bond = Annual Interest Payment / Yield to Maturity. Plug in the values we have: Annual Interest Payment = $80, Yield to Maturity = 10%. Value of Bond = $80 / 10% = $800.

c. Should you purchase the bond? Since the current market price of the bond is higher than the value of the bond to you, it may not be a good investment. You would be paying more than the bond's actual value, which would lower your potential return on investment.

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After extrapolating the results of performing substantive tests on a sample of accounts from the accounts receivable subsidiary ledger, Allen CA concluded that the accounts receivable balance was materially misstated. In fact, the balance was materially correct. This situation illustrates the risk of:A.Incorrect rejection.B. Incorrect acceptance.C. Assessing control risk too low.D. Assessing control risk too high

Answers

Answer: A. Incorrect rejection

Explanation:

INCORRECT REJECTION, in accounting, is the risk the sample supports the conclusion that the recorded balance is materially misstated when it is not materially misstated.

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purchase order
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receiving document

Answers

Answer:

job cost sheet

Explanation:

The job cost sheet refers to the statement used to report production costs and is developed by businesses using a work-order charging system to measure and assign costs of goods and services.

is the responsibility of the accounts department to chart all production costs (primary supplies, direct labor and overhead production) on the work cost sheet. For each worker, a separate job expense sheet is arranged.

Job cost sheet not gets utilized for paying work expenses only, it's also component of the reporting records of the business. It is also used in the system account as something of a subordinate ledger to the project as it includes all the information about the work being done.

Which of the following is not an obstacle to achieving environmental efficiency through markets? Select one: a. Transactions costs. b. Income effects. c. Free-rider problems. d. Private negotiations.

Answers

Answer:

The correct answer is letter "D": Private negotiations.

Explanation:

Environmental efficiency through markets is in charge of promoting the creation of more goods and services without the need for exploiting more resources or increasing pollution. Its purpose is to take sustainability towards economic efficiency considering ecological awareness.

In that case, private negotiations could boost environmental efficiency since firms could create partnerships among them to contribute to each other in their production process to avoid the use of more natural resources.

At the end of 2017, Carpenter Co. has accounts receivable of $778,100 and an allowance for doubtful accounts of $63,200. On January 24, 2018, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $7,400.Prepare the journal entry to record the write-off.

Answers

Answer:

Dr. Allowance for Doubtful Accounts $7,400

Cr. Accounts Receivable $7,400

Explanation:

A write off eliminates the account receivable balance. It is recorded as the debit to Allowance for Doubtful Accounts because of its credit nature. It reduces the balance of the allowance use it for actual write off. On the other hand it credit the account receivable balance to reduce it as it is debit in nature.

The Work-in-Process inventory account of a manufacturing firm shows a balance of $4,090 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $570 and $370 for materials, and charges of $600 and $800 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of: Multiple Choice 43%.