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
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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