ACCT2102 - Lecture 9 - Lecture Exercise - Solution

12093733 depreciation 5050000 total oh costs 25330800

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$12,093,733 Depreciation: $5,050,000 Total OH costs: $25,330,800 BOHR = Total OH Costs / Total DL hours (allocation base) BOHR = $25,330,800 / 166,650 = $152/DLH COGM = Manufacturing Costs = DM + DL + OH COGM = $16,160,000 + $4,014,750 + $25,330,800 = $45,505,550
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6. Budgeted Ending Finished Goods Inventory and Cost of Goods Sold Ending inventory FG = Number of units in FG inventory x unit cost Unit costs: DM: (2 x $20) + (1 x $70) + (1 x $50) = $160.00 DL: (1.5 x $25) + (0.15 x $15) = $ 39.75 OH: (1.5 +0.15) x $152 = $250.80 Unit cost of FG $450.55 Cost ending inventory FG: 3,500 u x $450.55 = $1,576,925 Cost of Goods Sold = B. Inventory FG + COGM – E. Inventory FG COGS = $1,136,875 + $45,505,550 - $1,576,925 = $45,065,500 7. Support Department Budget Sales expenses ($80,000,000 x 5%): $4,000,000 Administration and other expenses: $23,069,500 Total budgeted costs support department: $27,069,500 8. Budgeted Income Statement
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Sales Revenue: $80,000,000 Less: COGS $(45,065,500) Gross Margin: $34,934,500 Sales Expenses: $(4,000,000) Admin and other expenses: $(23,069,500) Operating Profit: $ 7,865,000 Tax Expenses (30%): $ (2,359,500) Net Profit After Tax: $ 5,505,500
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12093733 Depreciation 5050000 Total OH costs 25330800 BOHR...

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