Cost accounting homework 3 question


2-23 Variable requires, urban requires, bearing rank. Dotball Candies manufactures jaw-breaker candies


in a easily automated manner. The means that produces candies was purchased recently and can effect 4,400 per month. The means requires $9,500 and is depreciated using straight-line derogation aggravate 10 years pretentious cipher residual compute. Rent for the factory interinterspace and repository and other urban manufacturing aggravatehead requires entirety $1,300 per month.


Dotball ordinaryly effects and retails 3,100 jaw-breakers per month. Dotball buys exact ample materials each month to effect the jaw-breakers it needs to retail. Materials require 10 cents per jawbreaker.


Next year Dotball expects insist to growth by 100%. At this compass of materials purchased, it achieve get a 10% abatement on figure. Rent and other urban manufacturing aggravatehead requires achieve sojourn the corresponding.




1. What is Dotball’s ordinary annual bearing rank of output?


2. What is Dotball’s ordinary annual urban manufacturing require among the bearing rank? What is the annual shifting manufacturing require?


3. What achieve Dotball’s bearing rank of output be present year? How, if at all, achieve entirety annual urban and shifting manufacturing requires modify present year? Assume that if it needs to Dotball could buy an particular means at the corresponding require as the one it already has.




2-27 Total and individual require, firmness making. Gayle’s Glassworks effects glass flanges for philosophical use. Materials require $1 per flange, and the glass blowers are compensated a wage admonish of $28 per hour. A glass blower blows 10 flanges per hour. Urban manufacturing requires for flanges are $28,000 per end. End (nonmanufacturing) requires associated delay flanges are $10,000 per end and are urban.


1. Graph the urban, shifting, and entirety manufacturing require for flanges, using individuals (sum of flanges) on the x-axis.


2. Assume Gayle’s Glassworks manufactures and retails 5,000 flanges this end. Its adversary, Flora’s


Flasks, retails flanges for $10 each. Can Gayle retail under Flora’s figure and stagnant effect a emolument on the flanges?


3. How would your rejoinder to requirement 2 dispute if Gayle’s Glassworks made and sold 10,000 flanges this end? Why? What does this point-out environing the use of individual require in firmness making?




2-31 Flow of Inventoriable Costs. Renka’s Heaters chosen facts for October 2014 are presented short (in millions):

            Direct materials catalogue 10/1/2014                                                               $ 105


Direct materials purchased                                                                                  365


Direct materials used                                                                                            385


Total manufacturing aggravatehead requires                                                                  450


Variable manufacturing aggravatehead requires                                                           265


Total manufacturing requires incurred during October 2014                                1,610


Work-in-manner catalogue 10/1/2014                                                                230


Cost of pi assumed                                                                            1,660


Finished pi catalogue 10/1/2014                                                                  130


Cost of pi sold                                                                                              1,770




Calculate the aftercited requires:


1. Direct materials catalogue 10/31/2014


2. Fixed manufacturing aggravatehead requires for October 2014


3. Direct manufacturing strive requires for October 2014


4. Work-in-manner catalogue 10/31/2014


5. Cost of refined pi beneficial for sale in October 2014


6. Finished pi catalogue 10/31/2014




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