Name: Solution

Student Number:

Instructions:
All the questions for this assignment can be found in the tabs that follow this tab.
Provide your answers in the spaces provided. Make sure you show your work and
let excel do the calculations for you.
Once the assignment is complete, submit the completed excel file in the appropriate
submission folder.

Grading (once I grade the assignment your mark will be updated here):
Question # Marks Your Mark
Ch. 1&2a 10 10
Ch. 1&2b 10 10
Ch 3 10 10
Ch 4 10 10
Ch 5 10 10
Totals 50 50 100%
Marks Please leave Column A blank as I would like to use it for marking purposes.

HiSing manufactures beverages for the Taiwanese market. The following data relate to its
July 31, 2022 fiscal year end (adopted from Tony Bell's workbook).
10
Raw materials inventory, August 1, 2021 $185,000
Raw materials inventory, July 31, 2022 140,000
Work in process inventory, August 1, 2021 25,000
Work in process inventory, July 31, 2022 35,000
Finished goods inventory, August 1, 2021 375,000
Finished goods inventory, July 31, 2022 390,000
Direct labour 1,200,000
Sales commissions 400,000 not a product cost
Factory supervisors’ wages 240,000
Company president's salary 250,000 not a product cost
Purchases of raw materials 3,250,000
Property taxes (75% factory, 25% office) 100,000
Depreciation (90% factory, 10% office) 1,700,000
Repairs and maintenance (95% factory, 5% office) 200,000
Utilities expense (90% factory, 10% office) 600,000
Sales revenue 10,300,000
Advertising 2,000,000 not a product cost

Required (where possible complete your work in the space immediately below each question. If you ne
rows):
Based on the information above:
a.) Prepare a schedule of cost of goods manufactured.

Cost of goods manufactured schedule

0.5 Opening WIP Inventory 25,000
Add costs added during the period:
2 Direct materials $3,295,000
0.5 Direct labour 1,200,000
2.5 Manufacturing overhead 2,575,000
Total costs added during the year $7,070,000

0.5 Less ending WIP Inventory balance 35,000

1 Cost of goods manufactured $7,060,000

 b.) Prepare a schedule of cost of goods sold.

Cost of Good Sold Schedule:

0.5 Opening finished goods inventory 375,000
1 Add cost of goods manufactured $7,060,000
0.5 Less ending finished goods inventory 390,000

1 Cost of Good Sold $7,045,000

a product cost

a product cost

a product cost

y below each question. If you need more space insert additional

Direct materials:
Raw materials opening $185,000
Add purchased during yr 3,250,000
Less ending raw mat'ls 140,000
Direct materials $3,295,000 Note no mention of indirect materials -

Manufacturing overhead:
Factory supervisors wage 240,000
Property taxes - factory 75000
Dep'n - factory 1530000
Repairs & Mtce - factory 190000
Utilities exp - factory 540000
2,575,000
mention of indirect materials - so assume all direct
Marks Please leave Column A blank as I would like to use it for marking purposes.

C&C Yachts built custom yachts in its production factory in Niagara-on-the-Lake. Once complete, these yachts
are shipped to their network of dealerships. They have collected this shipping cost data:
10
Month Yachts Shipped Shipping Cost

January 6 $ 11,650
February 4 9,100
March 3 7,825
April 8 14,200
May 2 6,550
June 7 12,925
July 5 10,375

Required (where possible complete your work in the space immediately below each question. If
you need more space insert additional rows):

A. Using the high-low method, create the cost formula for C&C Yachts’ shipping costs.

2 b= 1275
2 a= 4,000

2 y = 4,000 + 1,275x

B. Prepare a scatter graph of the shipping data using excel (might be easiest to do this in the columns to the
right). Then use the least-squares regression method to come up with the cost equation that represents the
line of best fit. Comment on the accuracy of this equation and how it compares to your high-low method
estimation.
2 for scatter graph
2 equation is identical . Based on R2 value of 1, equation is 100% accurate.

C. What would you estimate shipping costs to be if C&C Yachts shipped 10 yachts in a single month? Use the
cost formula you obtained in part A. Compare this to the cost equation you came up with in Part B.
nce complete, these yachts
data:
Chart Title
$16,000

$14,000
f(x) = 1275 x + 4000
R² = 1
$12,000

$10,000

$8,000

$6,000

$4,000

$2,000
elow each question. If
$-
1 2 3 4 5 6 7 8 9

his in the columns to the

uation that represents the
your high-low method

n a single month? Use the

p with in Part B.
Marks Please leave Column A blank as I would like to use it for marking purposes.

Cyrovan Company (CVC) sells a single product. CVC's revenue and expenses for the last month are as
follows:
10
Total Per Unit

Revenue $ 480,000 $ 30.00

Variable expenses 208,000 13.00
Contribution margin 272,000 $ 17.00
Fixed expenses 216,000
Operating income $ 56,000

Required (where possible complete your work in the space immediately below each question.
If you need more space insert additional rows):
1 What is the monthly break even point in units and in sales dollars?
BE units = 12705.882353
1 BE units equals 12706 units
1 Sales at Breakeven $ 381,180.00
2 What is the total contribution margin at breakeven? A computation is not required for this.

1 Total contribution margin at breakeven is $ 216,000.00

3 How many units would have to be sold each month to earn a target profit of $104,000? Prepare a
contribution margin format income statement to prove your answer.

Target units = $ 18,823.53

1 18824 units

Revenue $ 564,720
Variable expenses 244,712
Contribution margin 320,008
Fixed expenses 216,000
1 Operating income $ 104,008 $8 higher due to inability to sell part units

4
Redo part 3 but now assume a tax rate of 30%. How many units need to be sold each month to
achieve a after tax profit of $95,000?
1 BTP = $ 135,714.29
Target units = 20,689.08
1 20690 units
5
Based on the original data supplied above, what is CVC's current margin of safety in both dollar and
percentage terms?
0.5 Margin of safety $ $ 98,820.00
0.5 Margin of safety % 20.59%
 6 If CVC increased sales by $50,000 per month and there is no change in total fixed expenses and
variable expenses per unit, what should operating income increase by?
0.5 CM ratio = 0.5666666667
Operating Income
0.5 Incr $ 28,333.33

7 If sales were to increase by 15% what should operating income increase by (again no change in total
fixed expenses and variable costs per unit)? Use operating leverage to answer this question.

0.5 Operating leverage = 4.8571428571

0.5 15% increase in sales will result in a 72.86% increase in operating income
r the last month are as

y below each question.

required for this.

of $104,000? Prepare a

e sold each month to

safety in both dollar and

al fixed expenses and

y (again no change in total

wer this question.
Marks Please leave Column A blank as I would like to use it for marking purposes.

Custom Cabinets Inc. (CCI) uses a job-order costing system. During February and March only 3 jobs were worked o
completed on March 15th. The other two jobs were still in process at March 31st, CCI's year end. Here is a summa
the job cost sheets for the 3 jobs:

10 Job 1602 Job 1603 Job 1604

February costs incurred:
Direct materials $ 16,000 $ 9,000 $ -
Direct labour 13,500 7,300 -
Manufacturing overhead 21,600 11,680 -
March costs incurred:
Direct materials - 8,400 21,000
Direct Labour 4,000 5,800 10,300
Manufacturing overhead ? ? ?

Manufacturing overhead is applied to jobs on the basis of direct labour cost. Balances in the inventory accounts at
were as follows:
Raw Materials $ 40,000
Work in Process ?
Finished goods 85,000

Required (where possible complete your work in the space immediately below each question. If you ne
more space insert additional rows):
1 What is the February 28th work in process balance? Assume no over/under applied manufacturing overhead.
1 WIP balance Feb 28 $ 79,080

2
What is the predetermined overhead rate that CCI uses to apply manufacturing overhead? What manufacturi
applied to the 3 jobs in March?
PDOHR = 1.6 times direct labour cost

Job 1602 Job 1603 Job 1604

2 Manufacturing o/h applied 6,400 9,280 16,480

3 If CCI incurred actual manufacturing overhead of $4,000 in indirect materials, $8,200 in indirect labour and $20
various manufacturing overhead costs, what was the over/underapplied overhead for March?
Actual MOH $ 32,700.00
MOH applied $ 32,160.00
1 MOH underapplied $ 540.00
4 What is the Raw Materials ending inventory balance at the end of March assuming CCI did not make any raw m
during March?
Raw Materials opening $ 40,000
Less transferred to jobs 29,400
Less transferred to MOH 4000
2 Raw materials ending $ 6,600

5 Assume that, during March, CCI sold goods costing $45,000. What is the finished goods inventory balance at t

Finished goods opening 85,000

Add goods completed during period $ 61,500 Job 1602
Less COGS 45000
2 Finished goods ending 101,500

6
What is the Work-in-Process Inventory ending balance at March 31st? Assume over/underapplied inventory is
of goods sold.

WIP opening $ 79,080

Add costs added 81,660
Less costs transferred out to FG $ 61,500
2 WIP ending $ 99,240

or
Job 1603 total $ 51,460
Job 1604 total $ 47,780
$ 99,240
and March only 3 jobs were worked on. Job 1602 was
31st, CCI's year end. Here is a summary of the data from

Balances in the inventory accounts at the end of February

ely below each question. If you need

der applied manufacturing overhead.

cturing overhead? What manufacturing overhead was

32,160

rials, $8,200 in indirect labour and $20,500 in other

overhead for March?

assuming CCI did not make any raw material purchases

finished goods inventory balance at the end of March?

ssume over/underapplied inventory is closed out to cost

Marks Please leave Column A blank as I would like to use it for marking purposes.
Cravings Cookie Company (CCC) makes low fat cookies. It has three processsing departments - mixing, baking and p
following information pertains to a month for the mixing department, the first process.
10
% Complete
Units Materials Conversion
Work in Process, beginning 16,000 100% 75%
Started into production 154,000
Completed and transferred out 130,000
Work in Process, ending ? 100% 25%

Costs
Work in process beginning $ 25,200 $ 24,800
Costs added during the month 334,800 238,700

Required (where possible complete your work in the space immediately below each question. If you ne
more space insert additional rows. Also, you might want to use the production report template):
Assume CCC uses the weighted average method for its process costing system.

1 How many units are in work in process at the end of the month?
1 WIP End units 40,000

2
Prepare a production report for the month that shows equivalent units, cost per equivalent unit and costs tran
mixing department to the baking department.
See below
1 Costs transferred out = 519,973

3 What is the ending balance in the Work in Process Inventory account for the mixing department?

1 Ending WIP balance 103,527

4
What is the journal entry that CCC would need to record the transfer of costs from the mixing department to t
0.5 Dr. WIP Baking 519,973
0.5 Cr. WIP Mixing 519,973

Template: Process Costing - Weighted average

Equivalent Units
Direct Conversion
Flow of Production Physical Units Materials Costs
 Units:
Opening units in WIP 16,000
Started during period 154,000
1 Units to account for 170,000

Units completed and transferred

out during month 130,000 130,000 130,000
1 Units in ending WIP 40,000 40,000 10,000
Units accounted for 170,000 170,000 140,000

Costs:
Costs in Opening WIP $ 50,000 $ 25,200 $ 24,800
Costs added during the period $ 573,500 334,800 238,700
1 Costs to account for $ 623,500 $ 360,000 $ 263,500

1 Cost per equivalent unit 2.12 1.88

Assignment of costs:
1 Completed and transferred out 519,973 275,294 244,679
1 Ending WIP 103,527 84,706 18,821
Total costs accounted for 623,500 360,000 263,500

Check $ -
departments - mixing, baking and packaging. The
rocess.

below each question. If you need

duction report template):

t per equivalent unit and costs transferred out of the

e mixing department?

ts from the mixing department to the baking department?