Managerial Accounting Assessment Assignment | Online Homework Help

we need to complete the attached requirements

Final Assessment (20%)
Semester : Spring2 2020 Year : 2019/2020
Course Title : Managerial Accounting
Course Code : ACT310 Section : O2
Instructor : Dr. Gökberk Can and Dr. Suzan Dsouza
Instructions
Submit your assessment answers as handwritten online through
Moodle (with a cover page that incudes your name, ID, and the
Section.)
Due Date August 6, 2020 – 23:59
To be completed by the student
Students Name : Student ID:
Grading Scheme
Question Earned Points Max. Points Question Earned Points Max. Points
1 25 5 20
2 15
3 20
4 20
Total Earned Points Total Available Points Instructor Signature
100
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Question 1 (25 Points)
Libre Inc. produces covers for smartphones. The product is sold as single units, which have the
following price and variable costs.
Sales price $60
Direct material 11
Direct labor 6
Variable overhead 3
Budgeted fixed overhead in 2019, the company’s first year of operations, was $450,000. Actual
production was 50,000 units, of which 45,000 were sold. There is no beginning finished goods
inventory. Libre Inc. incurred the following selling and administrative expenses.
Fixed in 2019 $97,500
Variable per unit sold 5
Required:
1. Compute the product cost per container of smartphone cover under (a) variable costing
and (b) absorption costing. (10 points)
2. Prepare operating income statements for 2019 using (a) absorption costing and (b)
variable costing. (10 points)
3. Reconcile the operating income reported under the two methods using the shortcut
method. (5 points)
Question 2 (15 Points)
What are the qualities of information? Define them with your own example.
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Question 3 (20 Points)
Touch Screen Company manufactured 9,000 units during August of a screen. Records indicated
the following:
Direct labor 44,400 hr. at $9.80 per hr.
Direct material purchased 60,000 kg. at $4.65 per kg.
Direct material used 54,600 kg.
The screen has the following standard prime costs:
Direct material: 6 kg. at $4.50 per kg $27.00
Direct labor: 5 hr. at $10.00 per hr 50.00
Standard prime cost per unit $77.00
Required: For the month of August, compute the following variances, indicating whether each is
favorable or unfavorable. (4 points each)
a. Direct-material price variance.
b. Direct-material quantity variance.
c. Direct-material purchase price variance.
d. Direct-labor rate variance.
e. Direct-labor efficiency variance.
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Question 4 (20 Points)
The Cranberries Sound Company plans to sell 75,000 units in August and 85,000 units in September.
The desired monthly ending inventory in units of finished product is 75 percent of the next month’s
estimated sales. There are 52,500 finished units in inventory on July 31. Each unit of finished
product requires seven kilograms of raw material at a cost of $6.35 per pound. There are 105,000
kilograms of raw material in inventory on July 31.
Required: Compute the total estimated cost of raw-material purchases for the month of August.
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