The ABC Corporation manufactures and sells two products: T1 and T2. 20XX budget for the company is given below:

Projected Sales Units Price T1 60,000 $165 T2 40,000 $250

Inventories in Units January 1, 20XX December 31, 20XX T1 20,000 25,000 T2 8,000 9,000

The following direct materials are used in the two products: Amount used per unit Direct Material Unit T1 T2 A pound 4 5 B pound 2 3 C each 0 1

Anticipated Inventories Direct Material Purchase Price January 1, 2012 December 31, 2012 A $12 32,000 lb. 36,000 lb. B $5 29,000 lb. 32,000 lb. C $3 6,000 units 7,000 units

Projected direct manufacturing labor requirements and rates for 20XX are as follows: Hours per Unit Rate per Hour T1 2 $12 T2 3 $16

4

Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor-hour. Marketing and distribution costs are projected to be $100,000 and $ 300,000, respectively.

a. What is the total expected revenue (in dollars) for 20XX? b. What is the expected production level (in units) both for T1 and T2? c. What is the total direct material purchases (in dollars) for each type of direct material? d. What is the total direct manufacturing labor cost (in dollars)? e. What is the total overhead cost (in dollars)? f. What is the total cost of goods sold (in dollars)? g. What is the total expected operating income (in dollars) for 20XX?

Answers

Answer 1

Answer:

The ABC Corporation

a) Total Expected Revenue (in dollars) for 20XX:

Revenue from T1 = 60,000 x $165 = $26,400,000

Revenue from T2 = 40,000 x $250 = $10,000,000

Total Revenue from T1 and T2 = $36,400,000

b) Production Level (in units) for T1 and T2

                                           T1                       T2

Total Units sold             160,000           40,000

Add Closing Inventory   25,000             9,000

Units Available for sale 185,000           49,000

less opening inventory  20,000             8,000

Production Level          165,000 units 41,000 units

c) Total Direct Material Purchases (in dollars):

Cost of direct materials used    T1                T2

A:       (165,000 x 4 x $12)   $7,920,000   $2,460,000 (41,000 x 5 x $12)

B:       (165,000 x 2 x $5)       1,650,000          615,000 (41,000 x 3 x $5)

C:                                                           0          123,000 (41,000 x 1 x$3)

Total cost                            $9,570,000     $3,198,000 Total = $12,768,000

Cost of direct per unit = $58 ($9,570,000/165,000) for T1 and $78 ($3,198,000/41,000) for T2

Cost of direct materials used for production $12,768,000

Cost of closing direct materials:

                 A  (36,000 x $12)  $432,000

                 B (32,000 x $5)        160,000

                 C (7,000 x $3)            21,000             $613,000

Cost of direct materials available for prodn   $13,381,000

Less cost of beginning direct materials:

                 A  (32,000 x $12)        $384,000

                 B  (29,000 x $5)            145,000

                 C  (6,000 x $3)                18,000        $547,000

Cost of direct materials purchases               $12,834,000

d) The Total Direct Manufacturing Labor Cost (in dollars):

                                             T1                         T2

Direct labor per unit              2 hours                  3 hours

Direct labor rate per hour    $12                        $16

Direct labor cost per unit   $24                          $48

Production level              165,000 units        41,000 units

Labor Cost ($)                $3,960,000        $1,968,000

Total labor cost  $5,928,000 ($3,960,000 + $1,968,000)

e) Total Overhead cost (in dollars):

Overhead rate  = $20 per labor hour

Overhead cost per unit: T1 = $40 ($20 x 2) and T2 = $60 ($20 x 3)

T1 overhead = $20 x 2  x 165,000) = $6,600,000

T2 overhead = $20 x 3 x 41,000) =    $2,460,000

Total Overhead cost =                        $9,060,000

Cost of goods produced:

Cost of opening inventory of materials  = $547,000

Purchases of directials materials             12,834,000

less closing inventory of materials     =      $613,000

Cost of materials used for production    12,768,000

add Labor cost                                           5,928,000

add Overhead cost                                    9,060,000

Total production cost                            $27,756,000

f) Total cost of goods sold (in dollars):

Cost of opening inventory =          $3,928,000

Total Production cost             =    $27,756,000

Cost of goods available for sale  $31,684,000

Less cost of closing inventory       $4,724,000

Total cost of goods sold            $26,960,000

g) Total expected operating income (in dollars)

Sales Revenue:  T1 and T2  $36,400,000

Cost of goods sold                 26,960,000

Gross profit                             $9,440,000

less marketing & distribution      400,000

Total Expected Operating Income = $9,040,000

Explanation:

a) Cost of beginning inventory of finished goods:

T1, (Direct materials + Labor + Overhead) X inventory units =

T1 = 20,000 x ($58 + 24 + 40) = $2,440,000

T2 = 8,000 ($78 + 48 + 60) = $1,488,000

Total cost of beginning inventory = $3,928,000

b) Cost of closing Inventory of finished goods:

T1 = 25,000 x ($58 + 24 + 40) = $3,050,000

T2 = 9,000 ($78 + 48 + 60) = $1,674,000

Total cost of closing inventory = $4,724,000


Related Questions

An aluminium bar 600mm long with a diameter 40mm has a hole drilled in the centre of which 30mm in diameter and 100mm long if the modulus of elasticity is 85GN/M2 calculate the total contraction oon the bar due to comprehensive load of 160KN.

Answers

Answer:

Total contraction on the bar = 1.238 mm

Explanation:

Modulus of Elasticity, E = 85 GN/m²

Diameter of the aluminium bar, [tex]d_{Al} = 40 mm = 0.04 m[/tex]

Load, P = 160 kN

Cross sectional area of the aluminium bar without hole:

[tex]A_1 = \frac{\pi d_{Al}^2 }{4} \\A_1 = \frac{\pi 0.04^2 }{4}\\A_1 = 0.00126 m^2[/tex]

Diameter of hole, [tex]d_h = 30 mm = 0.03 m[/tex]

Cross sectional area of the aluminium bar with hole:

[tex]A_2 = \frac{\pi( d_{Al}^2 - d_{h}^2)}{4} \\A_2 = \frac{\pi (0.04^2 - 0.03^2) }{4}\\A_2 = 0.00055 m^2[/tex]

Length of the aluminium bar, [tex]L_{Al} = 600 mm = 0.6 m[/tex]

Length of the hole, [tex]L_h = 100mm = 0.1 m[/tex]

Contraction in aluminium bar without hole  [tex]= \frac{P * L_{Al}}{A_1 E}[/tex]

Contraction in aluminium bar without hole  [tex]= \frac{160*10^3 * 0.6}{0.00126 * 85 * 10^9 }[/tex]

Contraction in aluminium bar without hole = 96000/107100000

Contraction in aluminium bar without hole = 0.000896

Contraction in aluminium bar with hole  [tex]= \frac{P * L_{h}}{A_2 E}[/tex]

Contraction in aluminium bar without hole  [tex]= \frac{160*10^3 * 0.1}{0.00055 * 85 * 10^9 }[/tex]

Contraction in aluminium bar without hole = 16000/46750000

Contraction in aluminium bar without hole = 0.000342

Total contraction = 0.000896 + 0.000342

Total contraction = 0.001238 m = 1.238 mm

Find the minimum diameter of an alloy, tensile strength 75 MPa, needed to support a 30 kN load.

Answers

Answer:

The minimum diameter to withstand such tensile strength is 22.568 mm.

Explanation:

The allow is experimenting an axial load, so that stress formula for cylidrical sample is:

[tex]\sigma = \frac{P}{A_{c}}[/tex]

[tex]\sigma = \frac{4\cdot P}{\pi \cdot D^{2}}[/tex]

Where:

[tex]\sigma[/tex] - Normal stress, measured in kilopascals.

[tex]P[/tex] - Axial load, measured in kilonewtons.

[tex]A_{c}[/tex] - Cross section area, measured in square meters.

[tex]D[/tex] - Diameter, measured in meters.

Given that [tex]\sigma = 75\times 10^{3}\,kPa[/tex] and [tex]P = 30\,kN[/tex], diameter is now cleared and computed at last:

[tex]D^{2} = \frac{4\cdot P}{\pi \cdot \sigma}[/tex]

[tex]D = 2\sqrt{\frac{P}{\pi \cdot \sigma} }[/tex]

[tex]D = 2 \sqrt{\frac{30\,kN}{\pi \cdot (75\times 10^{3}\,kPa)} }[/tex]

[tex]D = 0.0225\,m[/tex]

[tex]D = 22.568\,mm[/tex]

The minimum diameter to withstand such tensile strength is 22.568 mm.

A(n) 78-hp compressor in a facility that operates at full load for 2500 h a year is powered by an electric motor that has an efficiency of 93 percent. If the unit cost of electricity is $0.11/kWh, what is the annual electricity cost of this compressor

Answers

Answer: $17,206.13

Explanation:

Hi, to answer this question we have to apply the next formula:  

Annual electricity cost = (P x 0.746 x Ckwh x h) /η  

P = compressor power = 78 hp  

0.746 kw/hp= constant (conversion to kw)

Ckwh = Cost per kilowatt hour = $0.11/kWh  

h = operating hours per year = 2500 h  

η = efficiency = 93% = 0.93 (decimal form)  

Replacing with the values given :  

C = ( 78 hp x 0.746 kw/hp x 0.11 $/kwh x 2500 h ) / 0.93 = $17,206.13  

A motor vehicle has a mass of 1.8 tonnes and its wheelbase is 3 m. The centre of gravity of the vehicle is situated in the central plane 0.9 m above the ground and 1.7 m behind the front axle. When moving on the level at 90 km/h the brakes applied and it comes to a rest in a distance of 50 m.
Calculate the normal reactions at the front and rear wheels during the braking period and the least coefficient of friction required between the tyres and the road. (Assume g = 10 m/s2)

Answers

Answer:

1) The normal reactions at the front wheel is 9909.375 N

The normal reactions at the rear wheel is 8090.625 N

2) The least coefficient of friction required between the tyres and the road is 0.625

Explanation:

1) The parameters given are as follows;

Speed, u = 90 km/h = 25 m/s

Distance, s it takes to come to rest = 50 m

Mass, m = 1.8 tonnes = 1,800 kg

From the equation of motion, we have;

v² - u² = 2·a·s

Where:

v = Final velocity = 0 m/s

a = acceleration

∴ 0² - 25² = 2 × a × 50

a = -6.25 m/s²

Force, F =  mass, m × a = 1,800 × (-6.25) = -11,250 N

The coefficient of friction, μ, is given as follows;

[tex]\mu =\dfrac{u^2}{2 \times g \times s} = \dfrac{25^2}{2 \times 10 \times 50} = 0.625[/tex]

Weight transfer is given as follows;

[tex]W_{t}=\dfrac{0.625 \times 0.9}{3}\times \dfrac{6.25}{10}\times 18000 = 2109.375 \, N[/tex]

Therefore, we have for the car at rest;

Taking moment about the Center of Gravity CG;

[tex]F_R[/tex] × 1.3 = 1.7 × [tex]F_F[/tex]

[tex]F_R[/tex] + [tex]F_F[/tex] = 18000

[tex]F_R + \dfrac{1.3 }{1.7} \times F_R = 18000[/tex]

[tex]F_R[/tex] = 18000*17/30 = 10200 N

[tex]F_F[/tex] = 18000 N - 10200 N = 7800 N

Hence with the weight transfer, we have;

The normal reactions at the rear wheel [tex]F_R[/tex]  = 10200 N - 2109.375 N = 8090.625 N

The normal reactions at the front wheel [tex]F_F[/tex] =  7800 N + 2109.375 N = 9909.375 N

2) The least coefficient of friction, μ, is given as follows;

[tex]\mu = \dfrac{F}{R} = \dfrac{11250}{18000} = 0.625[/tex]

The least coefficient of friction, μ = 0.625.

cubical tank 1 meter on each edge is filled with water at 20 degrees C. A cubical pure copper block 0.46 meters on each edge with an initial temperature of 100 degrees C is quickly submerged in the water, causing an amount of water equal to the volume of the smaller cube to spill from the tank. An insulated cover is placed on the tank. The tank is adiabatic. Estimate the equilibrium temperature of the system (block + water). Be sure to state all applicable assumptions.

Answers

Answer:

final temperature = 26.5°

Explanation:

Initial volume of water is 1 x 1 x 1 = 1 [tex]m^{3}[/tex]

Initial temperature of water = 20° C

Density of water = 1000 kg/[tex]m^{3}[/tex]

volume of copper block = 0.46 x 0.46 x 0.46 = 0.097 [tex]m^{3}[/tex]

Initial temperature of copper block = 100° C

Density of copper = 8960 kg/[tex]m^{3}[/tex]

Final volume of water = 1 - 0.097 = 0.903 [tex]m^{3}[/tex]

Assumptions:

since tank is adiabatic, there's no heat gain or loss through the wallsthe tank is perfectly full, leaving no room for cooling airtotal heat energy within the tank will be the summation of the heat energy of the copper and the water remaining in the tank.

mass of water remaining in the tank will be density x volume = 1000 x 0.903 = 903 kg

specific heat capacity of water c = 4186 J/K-kg

heat content of water left Hw = mcT = 903 x 4186 x 20 = 75.59 Mega-joules

mass of copper will be density x volume = 8960 x 0.097 = 869.12 kg

specific heat capacity of copper is 385 J/K-kg

heat content of copper Hc = mcT = 869.12 x 385 x 100 = 33.46 Mega-joules

total heat in the system = 75.59 + 33.46 = 109.05 Mega-joules

this heat will be distributed in the entire system

heat energy of water within the system = mcT

where T is the final temperature

= 903 x 4186 x T = 3779958T

for copper, heat will be

mcT = 869.12 x 385 = 334611.2T

these component heats will sum up to the final heat of the system, i.e

3779958T + 334611.2T = 109.05 x [tex]10^{6}[/tex]

4114569.2T = 109.05 x [tex]10^{6}[/tex]

final temperature T = (109.05 x [tex]10^{6}[/tex])/4114569.2 = 26.5°

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