Witt Recreation Company (WRC) makes e-bikes. The company currentlymanufactures two models, the Coaster and the Traveler, in one of the WRCfactories. Both models require the same assembling operations. The differencebetween the models is the cost of materials. The following data are available forthe second quarter.Number of bikes assembledCoaster750Traveler450Total1,200Materials cost per bikeOther costs:$ 638 $ 1,214$ 313,800396,800261,800354,800Direct laborDepreciation and leaseSupervision and controlFactory administrationRequired:Witt Recreation Company uses operations costing and assigns conversion costsbased on the number of units assembled. Compute the cost of each modelassembled in the second quarter.Note: Do not round intermediate calculations. Round your final answers tonearest whole number.Operation costMaterials costTotal costUnit costCoasterTravelerTotal$0

TOTAL COSTTotal Cost is the cost incurred in manufacturing a product.Total Cost Includes Cost of Raw…

Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter.

Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Operation cost Materials cost Total cost Unit cost Coaster 750 $626 Coaster Traveler 450 $ 1,202 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Total 1,200 Traveler $ 299,400 382,400 247,400 340,400 Total
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Coaster Traveler Total Number of bikes assembled 750 450 1,200 Materials cost per bike $ 625 $ 1,201 Other costs: Direct labor $ 298,200 Depreciation and lease 381,200 Supervision and control 246,200 Factory administration 339,200 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter.
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Required: Coaster 750 Traveler 450 Total 1,200 $ 627 $ 1,203 $ 300,600 383,600 248,600 341,600 Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Operation cost Materials cost Total cost Unit cost Coaster Traveler Total
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease. Supervision and control Factory administration Material cost Operation cost Total cost Unit cost Coaster 770 $ 638 Coaster Traveler 470 $ 1,280 Traveler Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Total S $ 1,240 $ 305,000 396,000 257,000 346,000 Total 0 0
Willis Company is trying to decide which of two bicycle wheels to manufacture next quarter. Cost data pertaining to the two choices follow. Multiple Choice Cost of materials per unit Cost of direct labor per unit Advertising cost per year 4,000 Depreciation on equipment 6,000 Which costs are relevant to the decision of which wheel to produce? Cost of materials and direct labor Wheel A $25 30 Cost of direct labor, advertising, and depreciation Cost of materials, direct labor and advertising Cost of advertising and depreciation Wheel XZ $45 35 7,000 9,000
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Required: Coaster 850 Traveler 550 Total 1,400 $ 702 $ 1,680 $ 337,000 460,000 305,000 378,000 Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Coaster Traveler Total Material cost $ Operation cost Total cost $ 796,500 $ 470,250 1,266,750 $ 477,900 $ 1,274,400 541,350 $ 1,011,600 1,019,250 Unit cost…
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration. Operation cost Materials cost Total cost Unit cost Coaster Coaster Traveler 750 450 $636 $ 1,212 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. 477,000 Traveler 545,400 Total 1,200 $ 311,400 394,400 259,400 352,400 $ Total
Mobility Partners makes wheelchairs and other assistive devices. For years it has made therear wheel assembly for its wheelchairs. A local bicycle manufacturing fi rm, Trailblazers, Inc.,offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its costper rear wheel assembly is as follows (based on annual production of 2,000 units):Direct materials . . . . . . . . . . . . . . . . . . . . . . . $ 50Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 106Variable overhead . . . . . . . . . . . . . . . . . . . . . 32Fixed overhead . . . . . . . . . . . . . . . . . . . . . . . 94Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $282Trailblazers has offered to sell the assembly to Mobility for $220 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility’s management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers’s offer would eliminate annual fi…
All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Model A Model B Model C Selling price $ ? $50 $55 Direct materials costs $5 $5 $5 Direct labor costs ($15 per labor hour) $15 $15 $30 Variable support costs ($3 per machine hour) $3 $6 $9 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A become the most profitable model to produce?
The controller for Camden's Bike Shop has gathered the following cost and activity level information: Average total cost per unit $225.00 Production level used to calculate average cost 1,000 Total fixed costs $80,000 If the controller uses the cost equation to predict total costs, what total cost would the controller calculate for 2,500 racing bicycles? Is there a difference between the forecasted total cost using average cost versus the cost equation? If there is a difference, what creates the difference? If there is no difference, when would there be a difference?
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): Direct materials Direct labor Variable overhead Fixed overhead Total Trailblazers' offer Materials $28 110 Total costs 19 Trailblazers has offered to sell the assembly to Mobility for $164 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $35,550. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) 38…
Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Selling price per unit. Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Required 1 Complete this question by entering your answers in the tabs below. Required 2 Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? Required 1 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the…