Problem #1
Listed here are the total costs associated with the production and sales of 50,000 sports water bottles manufactured by Thirst Quenchers Inc for the month March 2013. The water bottles sell for $6 each.
Required
1. Complete the schedule on the answer sheet by entering EACH COST in the amount for the production of 50,000 units as (a) either a product cost (direct materials, direct labor or factory overhead) or a period cost.
2. Compute totals for each column. In other words, you should have a total for direct materials, direct labor and factory overhead for product costs and a total for period costs. Save yourself some time - use the sum function to add column totals.
3. Compute the cost of one water bottle. Think about this. What is included in the cost of making a product?
4. Assume that you sold all bottles produced for $6.00 per bottle. Prepare a basic income statement for the month of March 2013. This is similar in format to the one you made for the excel extra credit assignment.
5. From the income statement you prepare compute the gross profit rate and profit margin for the month of March 2013
Problem #2
Horton Foods bakes and sells bagels each week to food service operations. Among the costs are bakers' salaries, $40,000; production management salaries, $25,000, equipment operating costs, $50,000; and flour and ingredient costs, $75,000.
Required:
1. Calculate prime costs
2. Calculate conversion costs.
Problem #3
Information for Mandolin Manufacturing for the year follows:
Required: Prepare the following schedules and statements. Use proper formatting and us formulas for adding and subtracting. You learned the basic formulas in the first excel exercise. Make these statements look like something you would give your employer and your job depends on how they look.
Please properly format your numbers -- with $ signs, commas, underlining, and double rulings. You will be graded on your use of excel tasks (formulas and proper formatting). If you are not sure where to put a dollar sign or where to put an underline or a double rule, go look at examples in the book. (Page 754 demonstration problem answer gives great illustrations for you to use as a guide for preparing and formatting the statements.)
1. Prepare, in proper form, a manufacturing statement for the year ended December 31
2. Prepare, in proper form, an income statement including the required earnings per share disclosure for the year ended December 31. Make sure you also compute the basic earnings per share amount and place that amount directly below the net income.