cost accounting acct 301 assignment 4

3
Buy here: http://student.land/cost-accounting-acct-301-assignment -4/ COST ACCOUNTING ACCT 301 ASSIGNMENT 4 Last Date for Submission 10th December 2016 You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment. Q1. Describe the Benefits and Drawbacks of GPK, RCA [1 Point] Q2. Nasser, Inc. makes electronic chips for smartphone manufacturers. The normal selling price is $55.00 per unit. Nasser was approached by Apple, U.S. smartphone, Inc. Apple wants to buy 10,000 units at $40, and Apple will pay the shipping costs. Suppose that the capacity of Nasser, Inc. is 110,000 units and projected sales to regular customers this year total 97,000 units. The per-unit costs traceable to the product (based on normal capacity of 110,000 units) are listed below. Direct materials $10.00 Direct labor 12.00 Variable mfg. overhead 13.00 Fixed mfg. overhead 9.00 Shipping/handling 5.00 Fixed administrative costs 0.34 Fixed selling costs 0.21 $49.55 a. Which costs are relevant to this decision? [1 Point] b. Does the quantitative analysis suggest that the company should accept the special order? [1.5 Points]

Upload: voffelarin

Post on 22-Jan-2018

17 views

Category:

Devices & Hardware


1 download

TRANSCRIPT

Page 1: COST ACCOUNTING ACCT 301 ASSIGNMENT 4

Buy here: http://student.land/cost-accounting-acct-301-assignment-4/ COST ACCOUNTING ACCT 301 ASSIGNMENT 4 Last Date for Submission 10th December 2016 You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment. Q1. Describe the Benefits and Drawbacks of GPK, RCA [1 Point] Q2. Nasser, Inc. makes electronic chips for smartphone manufacturers. The normal selling price is $55.00 per unit. Nasser was approached by Apple, U.S. smartphone, Inc. Apple wants to buy 10,000 units at $40, and Apple will pay the shipping costs. Suppose that the capacity of Nasser, Inc. is 110,000 units and projected sales to regular customers this year total 97,000 units. The per-unit costs traceable to the product (based on normal capacity of 110,000 units) are listed below. Direct materials $10.00 Direct labor 12.00 Variable mfg. overhead 13.00 Fixed mfg. overhead 9.00 Shipping/handling 5.00 Fixed administrative costs 0.34 Fixed selling costs 0.21 $49.55 a. Which costs are relevant to this decision? [1 Point] b. Does the quantitative analysis suggest that the company should accept the special order? [1.5 Points]

Page 2: COST ACCOUNTING ACCT 301 ASSIGNMENT 4

c. Write a paragraph explaining 3 qualitative issues related to the above special order, according to your paragraph, might Nasser consider before finalizing its decision? [1.5 Points] 1 Q3. Abdullah Motors manufactures cars and currently uses only 50% of its manufacturing facility (20,000 cars). The company could utilize more of its facility by producing its own tires and using the total capacity. It currently purchases tires at $30 per unit. Abdullah would incur $12 per unit for direct materials, $10 for direct labor, and $24 for overhead (which is 30% variable) if it produces the tires. a. Should Abdullah Motors make or buy the tires? Provide calculations that support your answer. [1 Point] b. Suppose Abdullah Motors could rent the unused portion of its plant and receive $1,500 a month. Should the company make or buy the tires? Provide calculations that support your answer [1 Point] c. List two qualitative factors that could affect this decision. [1 Point] Q4.International Rental Cars incurred the following costs in a recent fiscal period: Custodial services for branch office in St. Louis 250 Painting costs for luxury sports cars 320 Salaries for corporate accountants 395 Generalized advertising for the firm 460 Depreciation on home office computer equipment 665 Office equipment depreciation for Pasadena branch 775 Market research with business travelers 860 Total $3,725 Calculate the total cost in each of the following categories: a. Organization-sustaining activities [0.5 Point]

Page 3: COST ACCOUNTING ACCT 301 ASSIGNMENT 4

b. Facility-sustaining activities [0.5 Point] c. Customer-sustaining activities [0.5 Point] d. Product-sustaining activities [0.5 Point] 2