Change in Materials Costs Questions

Description

1. a. How much did the materials cost per unit change between June and July?

b. How much did the conversion cost per unit change between June and July?

2. Which is the optimal choice of material and factory overhead costs in August? Why?

3. On a FIFO basis, what are the percent changes in the cost per completed unit from one group to the next over the three-month period? What may have caused these differences?

4. How should William respond to Mr. Fantastics call to Show me the money! in terms of options to reduce production costs over time to increase profitability?

5. If the estimate for projected production in August is adjusted down by 20% due to inclement weather, yet total labor and factory overhead costs remain at the original amounts, what is the impact on cost per equivalent unit?

6. At the selling price of US$97.00 per unit, what is gross profit for July if the packaging department adds US$0.04 to each unit and if units sold are 30,000 in June and 35,000 in July? Explain.

7. How successful was William in reducing unit costs after the first month?

8. How does knowing the cost of the units produced over three months help managerial decision making?

9. Was this spreadsheet effective in addressing Mikes concerns that William would be able to determine the cost for each unit in each of three months, explain how one periods production data feeds into the next in a continuous flow, and analyze the progress of the business over time? Why or why not?

10. Was accepting the licensing requirement as part of the Spark Bank financing deal a good idea? What are the positive and negative aspects of doing so?

Our Service Charter

1. Professional & Expert Writers: Assignment Geeks only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Assignment Geeks are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Assignment Geeks is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Assignment Geeks, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.