Idaho Potatoes (IP) grows and processes potatoes in its one plant. It sells potatoes to two...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Idaho Potatoes (IP) grows and processes potatoes in its one plant. It sells potatoes to two markets - retail and institutional. The following information is available after a recent year-end: Retail 900,000 Institutional 100,000 Total Pounds of 1,000,000 Potatoes Direct Material $135,000 $15,000 $150,000 Cost Production $983,000 Support IP currently allocates production support on the basis of pounds of potatoes. IP recently made a bid to supply 25,000 pounds of potatoes to a college. It wants to add a profit of 20% of the cost in determining the selling price. Required • Using Excel, create a schedule showing the direct materials, production support for each product and the total cost. Calculate the unit cost for each product Calculate the "bid" on the 25,000 pounds of potatoes Step by Step Instructions 1. Calculate the overhead rate for the production support 2. Allocate the production support to the two products 3. Calculate the total cost for each product 4. Calculate the cost per pound for each product 5. Calculate the cost of the order of 25,000 pounds (institutional customer) 6. Add the profit to the order of 25,000 pounds 7. Calculate the total price of 25,000 pounds to the institutional customer. Idaho Potatoes (IP) grows and processes potatoes in its one plant. It sells potatoes to two markets - retail and institutional. The following information is available after a recent year-end: Retail 900,000 Institutional 100,000 Total Pounds of 1,000,000 Potatoes Direct Material $135,000 $15,000 $150,000 Cost Production $983,000 Support IP currently allocates production support on the basis of pounds of potatoes. IP recently made a bid to supply 25,000 pounds of potatoes to a college. It wants to add a profit of 20% of the cost in determining the selling price. Required • Using Excel, create a schedule showing the direct materials, production support for each product and the total cost. Calculate the unit cost for each product Calculate the "bid" on the 25,000 pounds of potatoes Step by Step Instructions 1. Calculate the overhead rate for the production support 2. Allocate the production support to the two products 3. Calculate the total cost for each product 4. Calculate the cost per pound for each product 5. Calculate the cost of the order of 25,000 pounds (institutional customer) 6. Add the profit to the order of 25,000 pounds 7. Calculate the total price of 25,000 pounds to the institutional customer.
Expert Answer:
Answer rating: 100% (QA)
Answer Summary for explaining the result Idaho potatoes IP se... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0131495388
12th edition
Authors: Charles T. Horngren, Srikant M. Datar, George Foster
Posted Date:
Students also viewed these accounting questions
-
Idaho Potatoes (IP) processes potatoes into potato cuts at its highly automated Pocatello plant. It sells potatoes to the retail consumer market and to the institutional market, which includes...
-
Idaho Potatoes (IP) grows and processes potatoes in its one plant. It sells potatoes to two markets - retail and institutional. The following information is available after a recent year-end: Pounds...
-
Idaho Food Processors processes potatoes into french fries. Production requires two processes: cutting and cooking. Direct materials are added at the beginning of the cutting process (potatoes) and...
-
Mario and Kaitlin are married and file a joint tax return. They have adjusted gross income of $385,000 that includes $4,700 of investment income ($3,000 short-term capital gains and $1,700 of...
-
In Exercises 1-2, find the least squares approximating parabola for the given points. 1. (1, 1), (2, - 2), (3, 3), (4, 4) 2. (1, 6), (2, 0), (3, O), (4, 2)
-
Calculate the profit margin, current ratio, inventory turnover, and purchasing efficiency (given an annual purchasing cost goal of $600,000).
-
Carbon Dioxide Levels Over Time Scientists are concerned about global warming and the effect of carbon dioxide emissions on the atmosphere. Figure 2.89 shows the concentration of carbon dioxide...
-
Assume the same facts as in Problem 31, except that Mike sells his land to a third party for $100,000 and then contributes that cash to the partnership in addition to the original $40,000...
-
Consider the following graph and the heuristic values of each state. The start state is S and the only goal state is G. B E S A Heuristic BCD E G 6 0 6 4 1 10 0 a) What path would uniform cost graph...
-
Do high school programs that emphasize science, technology, engineering and mathematics (STEM) lead to jobs? This was a question of interest in the second Longitudinal Study of Young People in...
-
You are the new general manager of Les Cuisines Elavie, inc, A newly formed company specializing in the manufacture and installation of High-end kitchen and bathroom cabinets. The company was founded...
-
Explain the differences between pre-roll, post-roll, and interlevel in-game advertising.
-
How can a site be optimized for search engines?
-
Search Wanelo for brands you like. Can you buy the products you find? Is a recommendation tool included in the page? Can you add products to your shopping cart and check out from within the page? In...
-
What are the three components of a variable?
-
Define the major variables marketers use to segment consumers, and provide an example of how each variable can be applied in a social media application.
-
Starbucks' decision to buy out its joint venture partner in Japan following several years of operation and instead establish a wholly owned subsidiary Multiple Choice suggests that the company no...
-
President Lee Coone has asked you to continue planning for an integrated corporate NDAS network. Ultimately, this network will link all the offices with the Tampa head office and become the...
-
Susan Wong is a distributor of brass picture frames. For 2005, she plans to purchase frames for $30 each and sell them for $45 each. Susan's fixed costs are expected to be $240,000. Susan's only...
-
Rembrandt Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, you are asked to recommend...
-
Fill in the blanks for each of the following independent cases. Variable Fixed Total Operating Case Revenues Costs Costs Costs Income Margin Percentag Contribution 800 $1,200 - 0-S200 a. b. $2,000...
-
Identify something you own, perhaps even something you still use regularly. a. Give a list of at least six reasons why you might consider replacing the identified item. b. Identify at least two...
-
A company owns a 6-year-old gear hobber that has a book value of \($60,000.\) The present market value of the hobber is \($80,000.Anew\) gear hobber can be purchased for \($450,000.\) Using an...
-
Ten reasons why companies use equipment long after replacements would be justified economically. In many cases, these reasons do not apply just to companies; rather, they apply to us as individuals....
Study smarter with the SolutionInn App