Quantitative Methods Essay

1752 words - 8 pages

1 Comprehensive Problem: Part 2
chapters 5–10

1. a. Physical units method of allocation:
Grades Board Feet Percent of Units Allocation*
Firsts and seconds 1,500,000 .20 180,000.
No. 1 common 3,000,000 .40 360,000
No. 2 common 1,875,000 .25 225,000
No. 3 common 1,125,000 .15 135,000
Totals 7,500,000 1.0 900,000

Unit cost:
Firsts and seconds .12 (180,000/1,500,000)
No. 1 common .12 (360,000/3,000,000)
No. 2 common .12 (225,000/1,875,000)
No. 3 common .12 (135,000/1,125,000)

b. Sales-value-at-split-off method:
Note: Market value is ...view middle of the document...

The relative sales value method assigns higher costs to grades that have higher market values. Thus, the cost of sofas and chairs using different grades of lumber would differ according to the grade of lumber used. The costing issue foreshadows the transfer pricing dilemma (discussed in a later section) that companies face. Since lumber has an outside market, opportunity costs are being incurred by the company. Perhaps a better solution is to transfer the lumber at market price per board foot.

Effect on Job A500 (the cost per board foot increases from $0.12 to $0.135):
Cost thus increases by $300 [($0.135 – $0.12)20,000 board feet].

Effect on Job B75 (the cost per board foot increases from $0.12 to $0.18):
Cost thus increases by $132 [($0.18 – $0.12)2,200 board feet].

2. Rate = 1,200,000/ 120,000= $10.00

3. Applied overhead = Rate × Actual hours
= 10.00 x 118,000
= 1,180,000

Overhead variance = Actual overhead – Applied overhead
= 1,150,000 – 1,180,000
= -30,000 Overapplied
Comp. Prob. 2 (Continued)

4. Weaving and Pattern Department:
a. Physical flow schedule (measured in yards):

BWIP 20,000
Units started 80,000
Total 100,000

Units completed 80,000
EWIP 20,000
Total 100,000

b. Equivalent units schedule:
Materials Conversion Costs
Units completed 80,000 80,000
EWIP 20,000 8,000
Total 100,000 88,000

c. Unit cost: $4. + $6. = $ 10.00

Note: Total cost of materials = BI + Costs added =
Total conversion costs = BI + Costs added =

d. Cost of goods transferred out:

$10.00 x 80 = 800,000

Comp. Prob. 2 (Continued)

Coloring and Bolting Department:

a. Physical flow schedule (measured in bolts):

BWIP 400
Units started 3,200
Total 3,600

Units completed 3,200
EWIP 400
Total 3,600

Note: EWIP = Total units to account for less units completed.

b. Equivalent units schedule:

Transferred-in
Materials Materials Conversion Costs
Units completed 3,200 3,200 3,200
EWIP 400 400 200
Total 3,600 3,600 3,400

c. Note: Transferred-in cost = BI + Costs added =
Materials = BI + Costs added =
Conversion costs = BI + Costs added =

Unit cost 100,000 + 800,000 = 900,000 / 3,600 = $250
82,000 + 8,000 = 90,000/ 3,600 = $25
6,600+9,000+140,000+99,400=255,000/3,400= $75

Thus, the unit cost of a bolt of Fabric FB70 is $350.

5. Process costing would not be appropriate. Operation costing is the approach that should be used. Operation costing assigns material costs to batches using job-order procedures. Conversion costs are...

Other assignments on Quantitative Methods

Fundamental Research Essay

1112 words - 5 pages statistical information, and the researcher will obtain an unbiased look at the data. Qualitative research, on the other hand, when used by researchers will look at the participants, ask general questions, collect data, analyze the board themes, and obtains a subjective look at the data (Creswell, 2008). The mixed method research is a combination of the quantitative and qualitative research methods. This method is collecting and examining all of the data

Marketing Research Essay

1342 words - 6 pages Observation Method in quantitative research methods for marketing was a big part of helping J.C. Penney’s determine that they needed to restructure and how they could accomplish that. Even Ron Johnson, CEO of the large retailer, said that retailing is “… hard and that’s what Steve [Jobs] said to me when we started stores at Apple (243 Peter and Donnelly).” This is where we can start to see the evolving sign of the start of Penney’s conducting

Research Methods Powerpoint Presentation

1061 words - 5 pages are data collection, data verification, data analysis and interpretation, reporting and evaluation, as well as discussing the findings and possible suggestions. Summary of Research Methods Qualitative and quantitative research methods are two research methods that are mostly used. Quantitative research method research can be defined as systematic exploration of observable empirical data that is found through mathematical, computational, or

Sociology Essay

1165 words - 5 pages Examine the view that theoretical issues are the important factor influencing sociologist’s choice of research methods (20 marks) Sociologists’ opinions differ among theoretical factors being the more important against other factors such as practical and ethical in influencing method choice. Positivists believe that sociological research should produce quantitative data e.g. official statistics and social surveys) as they identify and explain

Papl

669 words - 3 pages : Business Research Methods, Ch. 5 EBOOK COLLECTION: Business Research Methods, Ch. 6 EBOOK COLLECTION: Business Research Methods, Ch. 11 EBOOK COLLECTION: Business Research Methods, Ch. 3 ARTICLE: Week Two Topic Searches Assessment Please see the instructor's syllabus for this week's assignments. Week 3 - Topic 1: Types of Research Design Objectives Differentiate between qualitative and quantitative methods of research. Explain commonly

Local Policy Analysis

1597 words - 7 pages Miller, V., (2012) Qualitative & Quantitative Research Methods retrieved from http://www.ehow.com/info_8317623_qualitative-vs-quantitative-research-methods.html Pollin, R., (2007) Economic Prospect: Making the Federal Minimum Wage a Living Wage (pg 103-107, 139) retrieved from http://search.proquest.com.ezproxy.apollolibrary.com/docview/237221772 Wage and Hour Division: Minimum Wage law in States January 1, 2012 retrieved from http://www.dol.gov/whd/minwage/america.htm

Research Critique

379 words - 2 pages to the problem? * Were qualitative methods appropriate to answer the research questions? Literature Review * Did the author cite quantitative and qualitative studies relevant to the focus of the study? What other types of literature did the author include? * Are the references current? For qualitative studies, the author may have included studies older than the 5-year limit typically used for quantitative studies. Findings of

Is3350

310 words - 2 pages Larry Brown IS3350 Unit 9 Assignment 1 24 May 2914 Risk Mitigantion The most effective risk management practices used by project management in the public and private sectors. The methods described here are appropriate for public- and private-sector project owners’ representatives, including senior managers, program managers, project directors, and project managers. The primary objective of this report is to provide DOE project directors

Method Research Paper

1027 words - 5 pages qualitative and quantitative results. For this research, the purpose is to see a measurable difference between companies that have health and wellness programs and those that do not. As previously stated, in this author’s opinion, the methods to be used will be survey method combined with the observation method. The following will detail the manner in which this author proposes the research should be conducted. Initially the two similar

Summarize Research Article

1564 words - 7 pages name relatively sample size, the results can be difficult to replicate or generalize. Further differences between the two methods can occur through the coding & analysis of the data. Quantitative data are numeric; more objective, statistical process employed generates results & the interpretation of results. Qualitative data, researcher generally utilizes a process of inductive coding, which can be easily influenced by researcher

Research Process And Terminology Paper

593 words - 3 pages attempts to classify and organize events, to explain the causes of events, to predict the direction of future events, and to understand why and how these events occur. It represents a reasonable and informed guess as to why things are as they appear and to explain their underlying nature and meaning. Methodology (methods), on the other hand, involves the collection of accurate facts and/or data regarding the nature of crime and criminal justice

Similar Documents

Quantitative Methods For Business Essay

1023 words - 5 pages Question 1 (a) Question 1 (b) Revised probabilities for Survey study: | Conditional Probability | | Posterior Probability | State of Nature | P(Favourable result|State of Nature) | Prior Probability | Joint Probability | P(State of Nature|Favourable result) | Successful Market | 0.70 | × 0.50 | = 0.35 | 0.350.45=0.78 | Unsuccessful Market | 0.20 | × 0.50 | = 0.10 | 0.100.45=0.22

Psyc 255 Discussion Board 4 Essay

256 words - 2 pages All research must have careful observations no matter what type of research is being conducted. It is important to understand the differences between qualitative and quantitative methods in order to better understand the specific behavior being studied. Sometimes it is important to use both methods for the same study. "Qualitative research methods are the best!" “Qualitative research focuses on people behaving in natural settings and

Res351 Essay

589 words - 3 pages RES,351 February 1,2016 Understanding Business Research Terms and Concepts: Part 1 To understand business research terms and concepts there needs to be a descriptive idea of how to differentiate between qualitative and quantitative methods of research. To differentiate; qualitative methods provide the context against which to more plenary understand those results.Business researchers utilize

Compare And Contrast Two Social Research

312 words - 2 pages early 19th century. Positivism can be defined as ‘’ the tendency to develop the means of our reason either to predict the phenomena of nature or to modify them through our intervention, which is the characteristic feature of the positive philosophy’’ (Comte, 1971, 199). Positivism takes the form of quantitative research methods. Quantitative research methods include surveys, structured interviews and closed ended questions. Quantitative research