Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: A B

Direct materials used $270,000 Beginning work in process $40,000

Direct labor 200,000 Ending work in process 20,000

Manufacturing overhead 300,000 Beginning finished goods 50,000

Operating expenses 350,000 Ending finished goods 30,000

A) $750,000 $790,000

B) $770,000 $750,000

C) $790,000 $810,000

D) $770,000 $790,000

2) Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

Project SoupProject Nuts
Initial investment$400,000 $600,000
Annual net income30,00046,000
Net annual cash inflow110,000146,000
Estimated useful life5 years6 years
Salvage value-0--0-
The company requires a 10% rate of return on all new investments.

Present Value of an Annuity of 1
Periods 9% 10% 11% 12%
53.8903.7913.6963.605
64.4864.3554.2314.111
The annual rate of return for Project Soup is:

A) 55%.

B) 7.5%.

C) 27.5%.

D) 15.0%.

1. Glennon Company

Total manufacturing costs and costs of goods sold:

C) $790,000 $810,000

2. Carr Company

Annual Rate of Return for Project Soup:

B) 7.5%.

Explanation:

1A) Total Manufacturing costs

Direct materials used          $270,000

Beginning work in process     40,000  

Direct labor                            200,000

Ending work in process         (20,000 )

Manufacturing overhead      300,000

Total manufacturing costs $790,000

1B) Costs of goods sold:

Beginning finished goods           50,000

Costs of goods manufactured  790,000

less Ending finished goods        (30,000)

Cost of goods sold                   $810,000

2)                                Project Soup       Project Nuts

Initial investment         $400,000           $600,000

Annual net income          30,000                46,000

Net annual cash inflow   110,000              146,000

Annual Rate of Return = Annual net income/Initial Investment

= $30,000/$400,000 x 100 = 7.5%

a. $48.75

is the answer to your question

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.