20:59 4G Done 1920S2 Assignment 2 Question_c... Cost and Management Accounting Individual Assignment (15% of the course grade) To stimulate the online assessment bussion in May, only HAND-WRITTEN answers are accepted. Zero mark will be awarded if your answer is typed in WORD document Scan your answer or take photo to create a single PDF document with all papel the right order. Page number is required on each page. Question 1 McCracken Aerial, Inc. produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the win, and the following cost and revenue data have been provided for the first month of the plane's operation in the form of a worksheet. Beginning inventory Units produced Units sold 70 000 Selling price per unit Selling and administrative expenses: Variable per unit... Fixed (total) S160.000 Manufacturing costs Direct materials cost per unit Direct labor cost per unit... Variable manufacturing overhead cost per unit. S2 Fixed manufacturing overhead cost (total). 5640,000 SIO Rewind 1. Assume that the company uses absorption costing a. Determine the product cost. b. Prepare an income statement for the month 2. Assume that the company uses variable costing a. Determine the wis product cost. b. Prepare a contribution format income statement for the month. 3. Explain the reason for any difference in the ending inventory balances under the two costing methods and the impact of this difference on reported net operating income Question 2 20:59 46 Done 1920S2 Assignment 2 Question_c... Landers Company manufactures a number of products. The standards r ingtone of the date shows how with actual cost data for May Sendandoset Access used in product of 12000 Direct Of 3.00 24.000 for purchaudato costo materials 569.900,sedly 21. f a ct Direct 0.90 hours at SIXOO 11.400 hours at $17.40 per hour Labor per hour Variable 0.90 hours at $5.00 11.400 hours at a cost of $200 overhead per hour Required: 1. Compute the total standard cost per unit and total actual cost per unit. How much is the difference between the actual unit costs and standard cost? 2. Compute the following variances for May: a Materials quantity and price variances b. Labor efficiency and rate variances. c. Variable overhead efficiency and rate variances. 3. Discuss the main reasons for the difference between the actual unit o d standard cost you computed in (1) 20:59 all 4G Done 1920S2 Assignment 2 Question_c... 3 of 4 Question 3 Far East Inc., is a merchandising company that sells school supplies. The company is planning its cash needs for the third quarter. The following information has becom assembled to assist in preparing a cash budget for the quarter. a. Budgeted monthly absorption costing income statements for July-October areas follows: July August September Oktober $36,000 $66.000 $54000 541.000 Cost of goods sold 21.000 39.000 27000 24.000 Gross margin 27.000 37.000 17000 Selling and administrative expenses Selling expense 6,300 10.500 .500 8.100 Administrative expense" 3300 6300 6200 6100 Total selling and administrative expenses 9. 16.800 Net operating income $5.400 S10.200 S21.200 $2.800 Includes $1.500 depreciation each month. b. Sales are 20% for cash and 80% on credit. c. Credit sales are collected over a three-month period with 20% collected in the month of sale, 50% in the month following sale, and 30% in the second month following ake. Mwy ales ad 541.000, and June sales caled 33.000 d. sr% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable for c ry purchases at June 30 S12.100 e. The company maintains its ending inventory levels at 65% of the cost of the goods sold in the following month. The merchandise inventory June 30 is $13.650 1. Land costing $4,000 will be purchased in July, & Dividends of S1,600 will be declared and paid in September h. The cash balance on June 30 is $3.000, the company mas maintain a cash balance of at least this amount at the end of each month i. The company has an agreement with a local bank that allows it to borrow any amount at the beginning of each month, up to a total loan balance of S40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: 20:59 Done 192052 Assignment 2 Question_c... 4 of 4 Reywine 1. Prepare a schedule of expected cash collections for July August, and September and for the quarter in total 2. Prepare the following for merchandise immer A merchandise purchases budget for July August, and September Aschedule of expected cash disbursements for merchandise purchases for August, and September and for the quarter in total 3. Prepare a cash budget for July August, and September and for the quarters