ACCT 2302 Final

A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 53,600 units, 75% complete with respect to direct labor and overhead. The department completed and transferred out 118,500 units this period. The ending inventory consists of 43,600 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $33,000 and overhead costs of $41,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:

$0.26 Completed and transferred out: 118,500 EWIP (43,600 × 25%): 10,900 Total EUP = 129,400 Cost ÷ EUP ($33,000/129,400) = $0.26/EUP

The following data relates to Patterson Company's estimated amounts for next year. Manufacturing overhead costs: D1 = $67,000 D2 = $90,000 Direct labor hours: D1 = 190,000 DLH D2 = 210,000 DLH Machine hours: D1 = 210,000 MH D2 = 410,000 MH What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round your answer to two decimal places.)

$0.39 per DLH ($67,000 + $90,000)/(190,000 + 210,000) DLH = $0.39 per DLH

Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below. Direct labor hours: Mixing = 406,000 DLH Baking = 86,000 DLH Machine hours: Mixing = 806,000 MH Baking = 806,000 MH Overhead costs: Mixing = $507,500 Baking = $406,000 Compute Aztec's departmental overhead rate for the baking department based on machine hours.

$0.50 per MH $406,000/806,000 MH = $0.50 per MH

Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below. Direct labor hours: Mixing = 406,000 DLH Baking = 86,000 DLH Machine hours: Mixing = 806,000 MH Baking = 806,000 MH Overhead costs: Mixing = $507,500 Baking = $406,000 Compute Aztec's departmental overhead rate for the mixing department based on machine hours.

$0.63 per MH $507,500/806,000 MH = $0.63 per MH

Alexis Co. reported the following information for May: Part A Units sold: 5,900 units Selling price per unit: $700 Variable manufacturing cost per unit: 450 Sales commission per unit - Part A: 70 What is the contribution margin for Part A?

$1,062,000 Sales (5,900 units × $700/unit) = $4,130,000 Variable costs: Variable manufacturing costs (5,900 × $450/unit) = 2,655,000 Manufacturing margin = 1,475,000 Variable selling expenses (5,900 units × $70 per unit) = 413,000 Contribution margin = $1,062,000

During its most recent fiscal year, Dover, Inc. had total sales of $3,140,000. Contribution margin amounted to $1,470,000 and pretax income was $355,000. What amount should have been reported as fixed costs in the company's contribution margin income statement for the year?

$1,115,000 Contribution margin − Fixed costs = Pretax net income $1,470,000 − FC = $355,000 FC = $1,115,000

Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below. Direct labor hours: Mixing = 406,000 DLH Baking = 86,000 DLH Machine hours: Mixing = 806,000 MH Baking = 806,000 MH Overhead costs: Mixing = $507,500 Baking = $406,000 Compute Aztec's departmental overhead rate for the mixing department based on direct labor hours.

$1.25 per DLH $507,500/406,000 DLH = $1.25 per DLH

During March, the production department of a process operations system completed and transferred to finished goods 39,000 units that were in process at the beginning of March and 200,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 45% complete with respect to labor. At the end of March, 25,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to labor. The production department incurred direct materials cost of $254,000 and its beginning inventory included materials cost of $93,800. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

$1.32 Completed and transferred 239,000 × 100% 239,000 Ending Work in Process Direct materials 25,000 × 100% 25,000 Equivalent units 264,000 Costs of beginning inventory $93,800 Costs incurred this period 254,000 Total costs $347,800 Cost per equivalent unit$347,800/264,000 $1.32

Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (53,000 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $76,500 of direct material cost; $40,050 of conversion costs). Units started in May: 231,000 Units completed in May: 206,000 Work in Process, May 31 (78,000 units, 100% complete for direct materials; 20% complete for conversion costs). Costs incurred in May: Direct materials: $378,840 Conversion costs: $370,740 If Pitt Enterprises uses the FIFO method of process costing, compute the cost per equivalent unit for direct materials and conversion costs respectively for May.

$1.64; $1.85 Beginning inventory Direct materials (53,000 × 0%) 0 Conversion (53,000 × 60%) 31,800 Start and Complete 153,000 153,000 Ending WIP Direct materials (78,000 × 100%) 78,000 Conversion (78,000 × 20%) 15,600 Equivalent units of production 231,000 200,400 Costs $378,840 $370,740/Equivalent units of production 231,000 200,400 Cost per equivalent unit of production $1.64 $1.85

If one unit of Product Z2 used $3.20 of direct materials and $3.70 of direct labor, sold for $10.00, and was assigned overhead at the rate of 37% of direct labor costs, how much gross profit was realized from this sale? (Round your intermediate calculations and final answer to two decimal places.)

$1.73 Cost: DM$3.20 Selling Price$10.00 DL 3.70 Cost 8.27 OH ($3.70 × 37%) 1.37 Gross Profit$1.73 Total Cost$8.27

Front Company had net income of $90,500 based on variable costing. Beginning and ending inventories were 2,600 units and 4,800 units, respectively. Assume the fixed overhead per unit was $8.80 for both the beginning and ending inventory. What is net income under absorption costing?

$109,860 Income under variable costing + FOH in End. Inv. − FOH in Beg. Inv. = Income under absorption costing $90,500 + (4,800 units × $8.80) − (2,600 × $8.80) = $109,860

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $404,700; materials of $403,000 and direct labor of $213,000. During the year Adams incurred $428,100 in materials costs, $424,000 in overhead costs and $217,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.

$11,700 underapplied OH rate = $404,700/$213,000 = 190% Applied = $217,000 × 1.9 = $412,300; $424,000 − $412,300 = $11,700 underapplied

Coomb's Fashions forecasts sales of $133,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $36,500. If the December 31 inventory is targeted at $45,500, budgeted purchases for this quarter should be:

$115,400 Budgeted purchases = $45,500 + (80% × $133,000) − $36,500 = $115,400

Sea Company reports the following information regarding its production costs: Units produced: 55,000 units Direct labor: $48 per unit Direct materials: $41 per unit Variable overhead: $30 per unit Fixed overhead: $137,500 in total Compute the product cost per unit under absorption costing.

$121.50 $48 DL + $41 DM + $30 VOH + ($137,500/55,000) FOH = $121.50

A firm expects to sell 25,300 units of its product at $11.30 per unit and to incur variable costs per unit of $6.30. Total fixed costs are $73,000. The total contribution margin is:

$126,500 Contribution margin = Sales − Variable costs (25,300 × $11.30) − (25,300 × $6.30) = $126,500

Current information for the Healey Company follows: Beginning raw materials inventory: $14,900 Raw material purchases 57,000 Ending raw materials inventory 16,300 Beginning work in process inventory 22,100 Ending work in process inventory 27,700 Direct labor 41,300 Total factory overhead 29,700 All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are:

$126,600 Total Manufacturing Costs = Raw Materials Used + Direct Labor + Factory Overhead Raw materials used = Beginning Raw Materials Inventory + Raw Materials Purchases − Ending Raw Materials Inventory = $14,900 + $57,000 − $16,300 = $55,600 $55,600 + $41,300 + $29,700 = $126,600

Lowden Company has a predetermined overhead rate of 159% and allocates overhead based on direct material cost. During the current period, direct labor cost is $56,000 and direct materials cost is $86,000. How much overhead cost should Lowden Company should apply in the current period?

$136,740 $86,000 direct materials × 1.59 = $136,740

Sea Company reports the following information regarding its production cost. Units produced: 61,000 units Direct labor: $54 per unit Direct materials: $47 per unit Variable overhead: $36 per unit Fixed overhead: $124,000 in total Compute the product cost per unit under variable costing.

$137.00 $54 DL + $47 DM + $36 VOH = $137.00

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,100 of direct materials and used $4,600 of direct labor. The job was not finished by the end of September, but needed an additional $3,600 of direct materials and additional direct labor of $7,700 to finish the job in October. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B?

$14,600 DM $3,100 + DL $4,600 + OH ($4,600 × 1.5) = WIP for Job A3B $14,600 Work in process contains the sum of the costs on job cost sheets for jobs that are not yet complete

The standard materials cost to produce 1 unit of Product R is 9 pounds of material at a standard price of $55 per pound. In manufacturing 5,900 units, 50,300 pounds of material were used at a cost of $57 per pound. What is the direct materials quantity variance?

$154,000 favorable. AQ × SP: 50,300 pounds × $55/pound = $2,766,500 SQ × SP: 5,900 units x 9 pounds/unit × $55/pound = 2,920,500 Direct materials quantity variance: $154,000F

Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,940,000; sales of $5,515,000; cost of goods sold of $3,295,000; and operating expenses of $1,161,000. Assume a target income of 15% of average invested assets. Compute residual income for the division:

$168,000. $5,515,000 − 3,295,000 − 1,161,000 = $1,059,000; $1,059,000 − ($5,940,000 × 15%) = $168,000

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,400 of direct materials and used $4,900 of direct labor. The job was not finished by the end of September, but needed an additional $3,900 of direct materials in October and additional direct labor of $7,400 to finish the job. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October?

$18,700 October job costs: RM $3,900 + DL $7,400 + OH ($7,400 × 1.0) = $18,700 Work in process contains the sum of the costs on job cost sheets for jobs that are not yet complete.

Cameroon Corp. manufactures and sells electric staplers for $17.00 each. If 10,000 units were sold in December, and management forecasts 3% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:

$180,353 December sales $17.00 × 10,000 = $170,000 January sales = $170,000 × 1.03 = $175,100 February sales = $175,100 × 1.03 = $180,353

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $7 per unit, Direct labor, $5 per unit, Variable overhead, $6 per unit, and Fixed overhead, $279,000. The company produced 31,000 units, and sold 20,500 units, leaving 10,500 units in inventory at year-end. What is the value of ending inventory under variable costing?

$189,000 $7 + $5 + $6 = $18 per unit × 10,500 units = $189,000.

If beginning and ending work in process inventories are $6,600 and $16,600, respectively, and cost of goods manufactured is $186,000, what is the total manufacturing cost for the period?

$196,000 Manufacturing Costs + Beginning Work in Process − Ending Work in Process = Cost of Goods Manufactured; Manufacturing Costs + $6,600 − $16,600 = $186,000; Manufacturing Costs − $10,000 = $186,000; Manufacturing Costs = $196,000.

Alexis Co. reported the following information for May: Part A Units sold = 6,600 units Selling price per unit = $960 Variable manufacturing cost per unit = 600 Sales commission per unit - Part A = 96 What is the manufacturing margin for Part A?

$2,376,000 Sales (6,600 units × $960/unit) = $6,336,000 Variable costs: Variable manufacturing costs (6,600 × $600/unit) = 3,960,000 Manufacturing margin = $2,376,000

Claymore Corp. has the following information about its standards and production activity for September. The volume variance is: Actual total factory overhead incurred: $35,660 Standard factory overhead- Variable overhead: $6.00 per unit produced Fixed overhead ($8,960/5,600 estimated units to be produced): $1.60 per unit Actual units produced: 4,100 units

$2,400U. Flexible budget fixed overhead (given) = $8,960 Fixed overhead applied to production (4,100 units × $1.60/unit) = 6,560 Volume variance = $2,400 U

Summerlin Company budgeted 4,800 pounds of material costing $5.00 per pound to produce 2,600 units. The company actually used 5,300 pounds that cost $5.10 per pound to produce 2,600 units. What is the direct materials quantity variance?

$2,500 unfavorable. AQ × SP 5,300 pounds × $5.00 / pound = $26,500 SQ × SP4,800 pounds × $5.00 / pound = 24,000 Direct materials quantity variance = $2,500 U

A company rents a building with a total of 160,000 square feet, which are evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate of space on the second floor. The total monthly rent for the building is $24,000. How much of the monthly rental expense should be allocated to a department that occupies 13,000 square feet on the first floor? (Do not round your intermediate calculations.)

$2,600 First Floor: ($24,000 × 2/3)/80,000 sq. ft. = $0.20/sq. ft. $0.20/sq. ft. × 13,000 sq. ft. = $2,600

At the beginning of the month, the Painting Department of Skye Manufacturing had 34,000 units in inventory, 80% complete as to materials, and 25% complete as to conversion. The cost of the beginning inventory, $42,650, consisted of $36,400 of material costs and $6,250 of conversion costs. During the month the department started 129,000 units and transferred 141,000 units to the next manufacturing department. Costs added in the current month consisted of $299,180 of materials costs and $623,930 of conversion costs. At the end of the month, the department had 22,000 units in inventory, 40% complete as to materials and 15% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion respectively for the Painting Department.

$2.24; $4.37 Completed and Transferred Out 141,000 141,000 Ending WIP: Direct materials (22,000 × 40%) 8,800 Conversion (22,000 × 15%) 3,300 Equivalent units of production 149,800 144,300 Costs $335,580 $630,180 Equivalent units of production 149,800 144,300 Cost per equivalent unit of production $2.24 $4.37

Based on a predicted level of production and sales of 23,900 units, a company anticipates total variable costs of $107,550, fixed costs of $31,900, and operating income of $85,210. Based on this information, the budgeted amount of sales for 21,900 units would be:

$205,860. Sales = variable costs + fixed costs + operating income. Sales @ 23,900 units = $107,550 + $31,900 + $85,210 = $224,660 Selling price per unit = $224,660/23,900 = $9.40 per unit Budgeted sales @ 21,900 units = $9.40 × 21,900 = $205,860

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: Direct materials standard (7 kg. @ $1.60/kg.) = $11.20 per finished unit Actual cost of materials purchased = $249,000 Actual direct materials purchased and used = 142,000kgs.

$21,800 unfavorable. Actual cost (AQ × AP) = $249,000 AQ × SP = 142,000 × $1.60 = 227,200 Direct materials price variance = $21,800 U

Watson Company has monthly fixed costs of $73,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $14,000, what dollar amount of sales must be made to produce the target income?

$217,500 (Fixed costs + Target income)/Contribution margin ratio = Dollar sales at target income ($73,000 + $14,000)/0.40 = $217,500 Sales

Asteroid Industries accumulated the following cost information for the year: Direct materials: $15,100 Indirect materials 3,100 Indirect labor 7,600 Factory depreciation 11,900 Direct labor 36,100 Using the above information, total factory overhead costs equal:

$22,600 Factory Overhead = Indirect Materials + Indirect Labor + Factory Depreciation Factory Overhead = $3,100 + $7,600 + $11,900 = $22,600

Use the following information to determine the margin of safety in dollars: Unit sales: 56,000 Units Dollar sales: $560,000 Fixed costs: $168,405 Variable costs: $271,600

$233,000 Contribution margin ratio = ($560,000 − $271,600)/$560,000 = 51.5% Break-even sales = $168,405/0.515 = $327,000 Margin of safety in dollars = $560,000 − $327,000 = $233,000

Use the following data to calculate the cost of goods sold for the period: Beginning Raw Materials Inventory: $30,500 Ending Raw Materials Inventory: 70,500 Beginning Work in Process Inventory: 40,500 Ending Work in Process Inventory: 46,500 Beginning Finished Goods Inventory: 72,500 Ending Finished Goods Inventory: 68,500 Cost of Goods Manufactured for the period: 246,500

$250,500 Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured − Ending Finished Goods Inventory Cost of Goods Sold = $72,500 + $246,500 − $68,500 = $250,500

A company's flexible budget for 22,000 units of production showed sales, $103,400; variable costs, $28,600; and fixed costs, $28,000. The fixed costs expected if the company produces and sells 28,000 units is:

$28,000. Fixed costs remain constant at all levels within the relevant range.

A lumber mill paid $132,000 for logs that produced 120,200 board feet of lumber in 3 different grades and amounts as follows: Structural 19,200 board feet $3,000/1,000 bd. ft. No. 1 Common 46,000 board feet $1,800/1,000 bd. ft. No. 2 Common 55,000 board feet $720/1,000 bd. ft. Compute the portion of the $132,000 joint cost to be allocated to No. 2 Common if the value basis is used.

$29,040. No. 2-22% × $132,000 = $29,040

A manufacturing company has a beginning finished goods inventory of $14,900, raw material purchases of $18,300, cost of goods manufactured of $33,100, and an ending finished goods inventory of $18,100. The cost of goods sold for this company is:

$29,900 Beginning Finished Goods + Cost of Goods Manufactured − Ending Finished Goods = Cost of Goods Sold; $14,900 + $33,100 − $18,100 = $29,900

The following data relates to Spurrier Company's estimated amounts for next year. Manufacturing overhead costs: D1 = $1,360,000 D2 = $3,560,000 Direct labor hours: D1 = 553,000 DLH D2 = 803,000 DLH Machine hours: D1 = 103,000 MH D2 = 37,000 MH What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round your answer to two decimal places.)

$3.63 per direct labor hour. ($1,360,000 + $3,560,000)/(553,000 + 803,000) DLH = $3.63 per DLH

Milltown Company specializes in selling used cars. During the month, the dealership sold 21 cars at an average price of $14,900 each. The budget for the month was to sell 19 cars at an average price of $15,900. Compute the dealership's sales volume variance for the month.

$31,800 favorable. Flexible = 21 × $15,900 = $333,900; Fixed = 19 × 15,900 = $302,100 Sales volume variance = $31,800 favorable

Brush Industries reports the following information for May: Sales: $965,000 Fixed cost of goods sold: 113,000 Variable cost of goods sold: 263,000 Fixed selling and administrative costs: 113,000 Variable selling and administrative costs: 138,000 Calculate the operating income for May under absorption costing.

$338,000 Sales $965,000 − Cost of goods sold $376,000 = Gross margin $589,000 − Selling and administrative costs $251,000 = $338,000

Division P of Launch Corporation has the capacity for making 81,000 wheel sets per year and regularly sells 66,000 each year on the outside market. The regular sales price is $160 per wheel set, and the variable production cost per unit is $113. Division Q of Launch Corporation currently buys 36,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $150 per wheel set. If Division Q were to buy the 36,000 wheel sets it needs annually from Division P at $135 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be:

$345,000 Price paid by Division Q to outside supplier for 36,000 wheel sets: $5,400,000 Less: Cost for Division P to produce 36,000 wheel sets @ $113 each: 4,068,000 Less: Lost profit for Division P to cut back sales to outside($160/set - $113/set) × 21,000 wheel sets: 987,000 Change in net annual operating income for the company as a whole: $345,000

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $355,200; materials of 412,000 and direct labor of $222,000. During the year Adams incurred $420,000 in materials costs, $413,400 in overhead costs and $226,000 in direct labor costs. Compute the amount of overhead applied to jobs during the year.

$361,600 OH rate = $355,200/$222,000 = 160% Applied = $226,000 × 1.60 = $361,600

Maroon Company's contribution margin ratio is 31%. Total fixed costs are $119,350. What is Maroon's break-even point in sales dollars?

$385,000 Break-even point in dollars = $119,350/0.31 = $385,000

The following information is available for the year ended December 31: Beginning raw materials inventory: $3,400 Raw materials purchases 4,900 Ending raw materials inventory 3,900 Office supplies expense 1,900 The amount of raw materials used in production for the year is:

$4,400 Beginning Raw Materials + Purchases − Ending Raw Materials = Raw Materials Used $3,400 + $4,900 − $3,900 = $4,400

Differential Chemical produced 10,500 gallons of Preon and 28,000 gallons of Paron. Joint costs incurred in producing the two products totaled $7,400. At the split-off point, Preon has a market value of $8.00 per gallon and Paron $2.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used.

$4,440. *Preon: $84,000/$140,000 = 60%; Paron: $56,000/$140,000 = 40% Preon allocation = 60% × $7,400 = $4,440; Paron allocation = 40% × $7,400 = $2,960

Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below. Direct labor hours: Mixing = 406,000 DLH Baking = 86,000 DLH Machine hours: Mixing = 806,000 MH Baking = 806,000 MH Overhead costs: Mixing = $507,500 Baking = $406,000 Compute Aztec's departmental overhead rate for the baking department based on direct labor hours.

$4.72 per DLH $406,000/86,000 DLH = $4.72 per DLH

Peterson Company estimates that overhead costs for the next year will be $3,600,000 for indirect labor and $910,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 110,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? (Round your answer to two decimal places.)

$41.00 per machine hour ($3,600,000 + $910,000)/110,000 machine hours = $41.00 per machine hour

Raven Company has a target of $70,400 pre-tax income. The contribution margin ratio is 25%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,800?

$428,800 Dollar sales at target income = ($36,800 + $70,400)/0.25 = $428,800

Sanchez Company's output for the current period was assigned a $430,000 standard direct labor cost. The direct labor variances included a $10,750 unfavorable direct labor rate variance and a $4,300 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period?

$436,450. Standard direct labor cost + unfavorable rate variance − favorable efficiency variance = actual direct labor cost.$430,000 + $10,750 − $4,300 = $436,450

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $324,000. The company produced 36,000 units, and sold 28,500 units, leaving 7,500 units in inventory at year-end. Income calculated under variable costing is determined to be $400,000. How much income is reported under absorption costing?

$467,500 Income under absorption costing = Income under variable costing + Fixed overhead cost in ending inventory − Fixed overhead cost in beginning inventory. $400,000 + $67,500 − $0 = $467,500.

Use the cost information below for Ruiz Inc. to determine the total manufacturing costs incurred during the year: Work in Process, January 1: $53,600 Work in Process, December 31 38,800 Direct materials used: $14,300 Total factory overhead 7,300 Direct labor used 28,300

$49,900 Costs Added = Direct Materials Used + Direct Labor + Factory Overhead Costs Added = $14,300 + $28,300 + 7,300 = $49,900

During July, the production department of a process operations system completed and transferred to finished goods 30,000 units that were in process at the beginning of July and 52,000 that were started and completed in July. July's beginning inventory units were 100% complete with respect to materials and 60% complete with respect to labor. At the end of July, 24,000 additional units were in process in the production department and were 100% complete with respect to materials and 35% complete with respect to labor. The beginning inventory included labor cost of $53,200 and the production department incurred direct labor cost of $452,150 during July. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

$5.59 Completed and transferred: 82,000 × 100% = 82,000 Ending Work in Process: Direct labor: 24,000 × 35% = 8,400 Equivalent units: 90,400 Costs of beginning inventory: $53,200 Costs incurred this period: 452,150 Total costs: $505,350 Cost per equivalent unit: $505,350/90,400 = $5.59

Using the following accounts and a predetermined overhead rate of 70% of direct labor cost, determine the amount of applied overhead. Work in Process Inventory: Beginning WIP: 19,100 Direct materials: 57,300 Direct labor ? Applied overhead ? To finished goods ? Ending WIP: 39,190 Finished Goods Inventory: Beginning FG: 5,500 159,610

$50,400 $19,100 + 57,300 + DL + OH − 159,610 = $39,190 DL + OH = $122,400 DL + 0.70DL = $122,400 1.70DL = $122,400; DL = $72,000 $72,000 + OH = $122,400; OH = $50,400

K Company estimates that overhead costs for the next year will be $3,400,000 for indirect labor and $850,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 85,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?

$50.00 per direct labor hour ($3,400,000 + $850,000)/85,000 direct labor hours = $50.00 per direct labor hour.

Using the information below, calculate net income for the period: Sales revenues for the period: $1,305,000 Operating expenses for the period: 240,000 Finished Goods Inventory, January 1: 37,000 Finished Goods Inventory, December 31: 42,000 Cost of goods manufactured for the period: 541,000

$529,000 Beginning Finished Goods Inventory + Cost of goods manufactured − Ending Finished Goods Inventory = Cost of goods sold Cost of goods sold = $37,000 + $541,000 − $42,000 = $536,000 Net Income = Sales − Cost of Goods Sold − Operating Expenses $1,305,000 − $536,000 − 240,000 = $529,000

Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 2's contribution to overhead in dollars is: Dept. Sales Cost of Goods Sold Direct Expenses Indirect Expenses 1 $2,700,000 $1,890,000 $270,000 $216,000 2 1,080,000 405,000 108,000 270,000 3 1,890,000 810,000 405,000 54,000

$567,000. Sales − Cost of goods sold − Direct expenses = Contribution to overhead $1,080,000 − $405,000 − $108,000 = $567,000

Use the cost information below for Ruiz, Inc. to determine cost of goods manufactured for the year: Work in Process, January 1: $50,200 Work in Process, December 31 37,100 Total factory overhead 5,600 Direct materials used 12,600 Direct labor used 26,600

$57,900 Cost of Goods Manufactured = Costs Added + Beginning Work in Process − Ending Work in Process Cost of Goods Manufactured = ($12,600 + $26,600 + $5,600) + $50,200 − $37,100 = $57,900

Urban Company reports the following information regarding its production cost: Units produced: 28,000 units Direct labor: $21 per unit Direct materials: $26 per unit Variable overhead: $11 per unit Fixed overhead: $118,000 in total Compute production cost per unit under variable costing.

$58.00 $21 DL + $26 DM + $11 VOH = $58.00

Data pertaining to a company's joint production for the current period follows: Quantities produced: L = 160lbs. M = 140lbs. Market value at split-off point: L = $14/lb. M = $24/lb. Compute the cost to be allocated to Product M for this period's $980 of joint costs if the value basis is used.

$588 *Product L: $2,240/$5,600 = 40%; Product M: $3,360/$5,600 = 60% Product L allocation = 40% × $980 = $392; Product M allocation = 60% × $980 = $588

Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7.00/hr.) = $28.00 per unit Actual hours worked = 12,000 Actual rate per hour = $7.50

$6,000 unfavorable. AH × AR(12,000) × $7.50/hr. = $90,000 AH × SR(12,000) × $7.00/hr. = 84,000 Total direct labor variance = $6,000 U

A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead): Units produced: P = 200 M = 17,200 Batch size (units): P = 10 M = 400 Number of setups: P = 20 M = 43 Direct labor hours per unit: P = 5 M = 5 Total direct labor hours: P = 1,000 M = 86,000 Cost per setup: $1,740 Total setup cost: $109,620 Using direct labor hours as the allocation base, the setup cost portion of overhead that is allocated to each unit of product for Plus and Max, respectively is:

$6.30; $6.30. $109,620/(1,000 + 86,000DLH) = $1.26/DLH Plus: 5 DLH × $1.26/DLH = $6.30 per unit Max: 5 DLH × $1.26/DLH = $6.30 per unit

A company's product sells at $12.14 per unit and has a $5.21 per unit variable cost. The company's total fixed costs are $97,300. The contribution margin per unit is:

$6.93 Selling price per unit = $12.14 Variable cost per unit = 5.21 Contribution margin per unit = $6.93

A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 50% in the next month, and 15% the following month. Projected sales for January, February, and March are $69,000, $94,000 and $104,000, respectively. The March expected cash receipts from current and prior credit sales is:

$62,520 Amount collected in March: 20% of March credit sales 20% × (80% × $104,000) = $16,640 50% of February credit sales 50% × (80% × $94,000) = 37,600 15% of January credit sales 15% × (80% × $69,000) = 8,280 Total collected in March = $62,520

If a firm's forecasted sales are $258,000 and its break-even sales are $194,000, the margin of safety in dollars is:

$64,000 $258,000 − $194,000 = $64,000

Reliance Corporation sold 5,300 units of its product at a price of $28 per unit. Total variable cost per unit is $15.00, consisting of $14.20 in variable production cost and $0.80 in variable selling and administrative cost. Compute the contribution margin for the company.

$68,900 $28.00 − $15.00 = $13.00 × 5,300 units = $68,900

Calculate the cost of goods manufactured using the following information: Direct materials used: $299,900 Direct labor used 133,400 Factory overhead costs 265,400 General and administrative expenses 86,900 Selling expenses 50,200 Work in Process inventory, January 1 119,900 Work in Process inventory, December 31 127,300 Finished goods inventory, January 1 233,500 Finished goods inventory, December 31 240,100

$691,300 Cost of Goods Manufactured = Raw Materials Used + Direct Labor + Factory Overhead + Beginning Work in Process − Ending Work in Process Cost of Goods Manufactured = $299,900 + $133,400 + $265,400 + $119,900 − $127,300 = $691,300

Comet Company accumulated the following account information for the year: Beginning raw materials inventory: $5,300 Indirect materials cost 1,300 Indirect labor cost 4,300 Maintenance of factory equipment 2,100 Direct labor cost 6,300 Using the above information, total factory overhead costs equal:

$7,700 Factory Overhead = Indirect materials + Indirect labor + Maintenance Factory Overhead = $1,300 + $4,300 + $2,100 = $7,700

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department: Equivalent units of production—direct materials = 102,000 EUP Equivalent units of production—conversion = 88,200 EUP Costs in beginning Work in Process—direct materials = $57,500 Costs in beginning Work in Process—conversion = $42,200 Costs incurred in February—direct materials = $485,500 Costs incurred in February—conversion = $609,700 The cost per equivalent unit of production for conversion is:

$7.39 Cost of beginning WIP $42,200 + costs incurred in February $609,700 = $651,900 Total cost $651,900/Equivalent units of production 88,200 = $7.39 cost per equivalent unit of production.

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 63,600 square feet; Painting has 90 employees and occupies 42,400 square feet. Indirect factory expenses for the current period are as follows: Administration$93,000 Maintenance$117,000 Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The amount of maintenance expenses that should be allocated to the Assembly Department for the current period is:

$70,200. Maintenance $117,000 × [63,600/(63,600 + 42,400)] = $70,200

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor rate variance. Direct labor standard (2 hrs. @ $12.75/hr.) $25.50 per finished unit Actual direct labor hours 64,600 hrs. Actual finished units produced 32,000 units Actual cost of direct labor $895,850

$72,200 unfavorable. Actual cost = $895,850; AH × SR = (64,600 × $12.75) = $823,650 Direct labor rate variance = $72,200 unfavorable

Using the information below, calculate gross profit for the period: Beginning Raw Materials Inventory: $26,500 Ending Raw Materials Inventory: 31,500 Beginning Work in Process Inventory: 58,000 Ending Work in Process Inventory: 67,000 Beginning Finished Goods Inventory: 83,000 Ending Finished Goods Inventory: 70,000 Cost of Goods Sold for the period: 555,000 Sales Revenues for the period: 1,284,000 Operating Expenses for the period: 247,000

$729,000 Gross Profit = Sales − Cost of Goods Sold; Gross Profit = $1,284,000 − $555,000 = $729,000

A company uses the weighted-average method for inventory costing. At the end of the period, 19,000 units were in the ending Work in Process inventory and are 100% complete for materials and 68% complete for conversion. The equivalent costs per unit are materials, $2.58, and conversion $2.20. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

$77,444 Ending Work in Process: Direct materials: 19,000 × 100% × $2.58 = $49,020 Conversion: 19,000 × 68% × $2.20 = 28,424 Total cost assigned: $77,444

Shore Company reports the following information regarding its production cost. Units produced: 37,000 units Direct labor: $32 per unit Direct materials: $33 per unit Variable overhead: $10 per unit Fixed overhead: $103,920 in total Compute product cost per unit under absorption costing.

$77.81 $32 DL + $33 DM + $10 VOH + ($103,920/37,000) FOH = $77.81

A July sales forecast projects that 7,000 units are going to be sold at a price of $11.50 per unit. Management forecasts 2% growth in sales each month. Total August sales are anticipated to be:

$82,110. July Sales = 7,000 × $11.50 = $80,500 August Sales = $80,500 × 1.02 = $82,110

Using the following accounts and a predetermined overhead rate of 140% of direct labor cost, compute the amount of applied overhead. Work in Process Inventory: Beginning WIP: 35,100 Direct materials: 57,200 Direct labor ? Factory overhead ? To finished goods: 213,300 Ending WIP: 25,100 Finished Goods Inventory: Beginning FG: 5,100 Cost of Goods Mfg'd: 213,300

$85,225 $35,100 + $57,200 + DL + OH − $213,300 = $25,100 DL + OH = $25,100 − 35,100 − 57,200 + 213,300 DL + OH = $146,100; DL + 1.4DL = $146,100; 2.4DL = $146,100; DL = $60,875 $60,875 + OH = $146,100; OH = $85,225

A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $16,000 indicates that Dept. Y had a direct expense of $1,700 for deliveries and Dept. Z had no direct expense. The indirect expenses are $14,300. The analysis also indicates that 55% of regular delivery requests originate in Dept. Y and 45% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:

$9,565; $6,435. Direct: Y = $1,700 Z = $0 Indirect to Y ($14,300 × 55%) = 7,865 Indirect to Z ($14,300 × 45%) = 6,435 Total = Y $9,565 Z $6,435

Accurate Metal Company sold 41,500 units of its product at a price of $440 per unit. Total variable cost per unit is $211, consisting of $202 in variable production cost and $9 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.

$9,877,000 ($440 − $202) × 41,500 units = $9,877,000

Janitor Supply produces an industrial cleaning powder that requires 33 grams of material at $0.10 per gram and 0.20 direct labor hours at $20.00 per hour. Overhead is applied at the rate of $13 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?

$9.90. Direct material per unit = 33g × $0.10/g = $3.30 Direct labor per unit = 0.20 hours × $20/hr. = $4.00 Overhead per unit = 0.20 hours × $13/hr. = $2.60 Total standard cost = $3.30 + $4.00 + $2.60 = $9.90 per unit

Kluber, Inc. had net income of $913,000 based on variable costing. Beginning and ending inventories were 56,300 units and 54,600 units, respectively. Assume the fixed overhead per unit was $1.90 for both the beginning and ending inventory. What is net income under absorption costing?

$909,770 Income under variable costing + FOH in End. Inv. − FOH in Beg. Inv. = Income under absorption costing $913,000 + (54,600 units × $1.90) − (56,300 × $1.90) = $909,770

Use the cost information below for Sundar Company to determine the cost of goods manufactured during the current year: Direct materials used: $20,900 Direct labor used 26,400 Factory overhead 45,600 Beginning work in process inventory 12,600 Ending work in process inventory 13,200

$92,300 Cost of Goods Manufactured = Costs Added + Beginning Work in Process − Ending Work in Process Cost of Goods Manufactured = ($20,900 + $26,400 + $45,600) + $12,600 − $13,200 = $92,300.

Use the cost information below for Sundar Company to determine the total manufacturing costs added during the current year: Direct materials used: $20,200 Direct labor used 25,700 Factory overhead 49,100 Beginning work in process inventory 11,900 Ending work in process inventory 12,500

$95,000 Direct Materials + Direct Labor + Factory Overhead = Manufacturing Costs Added $20,200 + $25,700 + $49,100 = $95,000

Hayes Inc. provided the following information for the current year: Beginning inventory: 200 units Units produced: 850 units Units sold: 897 units Selling price: $250/unit Direct materials: $45/unit Direct labor: $26/unit Variable manufacturing overhead: $25/unit Fixed manufacturing overhead: $35,700/year Variable selling/administrative costs: $18/unit Fixed selling/administrative costs: $25,500/year What is the unit product cost for the year using variable costing?

$96 Direct materials: $45 Direct labor: 26 Variable manufacturing overhead: 25 Total unit product cost: $96

Use the following data to determine the cost of goods manufactured: Beginning finished goods inventory$11,200 Direct labor used 31,000 Beginning work in process inventory 7,600 General and administrative expenses 13,900 Direct materials used 40,900 Ending work in process inventory 9,400 Indirect labor 6,700 Ending finished goods inventory 9,900 Indirect materials 13,900 Depreciation—factory equipment 7,900

$98,600 Cost of Goods Manufactured = Direct Materials + Direct Labor + Factory Overhead + Beginning Work in Process − Ending Work in Process Cost of Goods Manufactured = $40,900 + $31,000 (Indirect Labor + Indirect Materials + Depreciation Factory Equipment) + $7,600 − $9,400 Cost of Goods Manufactured = $40,900 + $31,000 + $6,700 + $13,900 + $7,900 + $7,600 − $9,400 = $98,600

At the beginning of the month, the Forming Department of Martin Manufacturing had 25,000 units in inventory, 25% complete as to materials, and 10% complete as to conversion. During the month the department started 90,000 units and transferred 92,000 units to the next manufacturing department. At the end of the month, the department had 23,000 units in inventory, 80% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the FIFO method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.

104,150 materials; 103,300 conversion Equivalent units of production/Materials Equivalent units of production/Conversion Beginning inventory: Direct materials (25,000 × 75%) = 18,750 Conversion (25,000 × 90%) = 22,500 Start and Complete: M = 67,000 C = 67,000 Ending WIP: Direct materials (23,000 × 80%) = 18,400 Conversion (23,000 × 60%) = 13,800 Equivalent units of production: D = 104,150 C = 103,300

Alliance Company budgets production of 33,000 units in January and 37,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $2.50 per pound. Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials. The January 1 inventory for this material is 46,200 pounds. What is the budgeted materials needed in pounds for January?

137,600 pounds Budgeted production units × materials requirement per unit = materials needed Materials needed + ending inventory requirements − beginning inventory available = materials to be purchased 33,000 × 4 lbs. = 132,000 lbs. 132,000 lbs. + (37,000 × 4 lbs. × 35%) − 46,200 lbs. = 137,600 lbs.

The Menswear Department of Major's Department Store had sales of $195,000, cost of goods sold of $136,000, indirect expenses of $13,950, and direct expenses of $28,200 for the current period. The Menswear Department's contribution to overhead as a percent of sales is:

15.79%. $195,000 − 136,000 − 28,200 = $30,800; $30,800/$195,000 = 15.79%

Charm Enterprises' production budget shows the following units to be produced for the coming three months: Units to be produced: April = 3,160 May = 3,480 June = 3,360 A finished unit requires five ounces of a key direct material. The March 31 Raw Materials Inventory has 6,960 ounces (oz.) of the material. Each month's ending Raw Materials Inventory should be 40% of the following month's production needs. Materials purchases in May should be?

17,160 oz For May production (3,480 units × 5 oz./unit) = 17,400 oz. For ending inventory (3,360 units × 5 oz./unit × 40%) = 6,720 oz. Less beginning inventory (3,480 units × 5 oz./unit × 40%) = (6,960) oz. Purchases in May = 17,160 oz.

During March, the production department of a process operations system completed and transferred to finished goods 23,000 units that were in process at the beginning of March and 130,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 57% complete with respect to conversion. At the end of March, 32,000 additional units were in process in the production department and were 100% complete with respect to materials and 32% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.

185,000 materials; 163,240 conversion Completed and transferred: 153,000 × 100% DM: 153,000 C: 153,000 Ending goods in process: Direct materials: 32,000 × 100% DM: 32,000 Conversion: 32,000 × 32% DM: 10,240 Equivalent units: DM: 185,000 C: 163,240

A company uses the weighted average method for inventory costing. At the beginning of a period the production department had 30,000 units in beginning Work in Process inventory which were 45% complete; the department completed and transferred 170,000 units. At the end of the period, 27,000 units were in the ending Work in Process inventory and are 80% complete. Compute the number of equivalent units produced by the department.

191,600 Completed and transferred: 170,000 × 100% = 170,000 Ending Work in Process: 27,000 × 80% = 21,600 Equivalent units = 191,600

Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (57,500 units, 100% complete for direct materials, 35% complete with respect to conversion costs; includes $85,500 of direct material cost; $49,050 of conversion costs). Units started in May: 240,000 Units completed in May: 215,000 Work in Process, May 31 (82,500 units, 100% complete for direct materials; 25% complete for conversion costs). Costs incurred in May Direct materials: $802,800 Conversion costs: $1,091,050 If Pitt Enterprises uses the weighted average method of process costing, compute the equivalent units for direct materials and conversion respectively for May.

297,500 materials; 235,625 conversion Equivalent units of production/Materials Equivalent units of production/Conversion Completed and Transferred Out: M = 215,000 C = 215,000 Ending WIP: Direct materials (82,500 × 100%) = 82,500 Conversion (82,500 × 25%) = 20,625 Equivalent units of production: M = 297,500 C = 235,625

Using the information below, compute the days' sales in raw materials inventory: Raw materials used: $90,500 Beginning raw materials inventory: 8,500 Ending raw materials inventory: 10,000

40.33 Days' sales in raw materials inventory = Ending raw materials/Raw materials used × 365 Days' sales in raw materials inventory = $10,000/$90,500 × 365 = 40.33

Kamper Company sells two products Big Z and Little Z. Current direct material and direct labor costs are detailed below. Next year, the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $490,000. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $25 per hour and the company expects to manufacture 47,000 units of Big Z and 24,000 units of Little Z next year. Direct Material per Unit: Big Z = $21 Little Z = $27 Direct Labor Dollars per Unit: Big Z = $20 Little Z = $12 What are total estimated direct labor hours for this next year?

49,120 total DLH $20/$25 = 0.80 DLH per unit of Big Z $12/$25 = 0.48 DLH per unit of Little Z 0.80 DLH × 47,000 units of Big Z + 0.48 DLH × 24,000 units of Little Z = 49,120 total DLH

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $690,000 and current break-even units are 6,900. If Forrester purchases this new equipment, the revised contribution margin ratio would be:

55% New contribution margin ratio = ($100 − $45)/$100 = 55%

Using the information below, compute the days' sales in raw materials inventory: Raw materials used: $129,600 Beginning raw materials inventory: 18,400 Ending raw materials inventory: 20,600

58.02 Days' sales in raw materials inventory = Ending raw materials/Raw materials used × 365 Days' sales in raw materials inventory = $20,600/$129,600 × 365 = 58.02

Using the information below, compute the cash conversion cycle: Days' sales in accounts receivable: 53 days Days' sales in inventory: 70 days Days' payable outstanding: 63 days

60 days. Cash conversion cycle = Days' sales in accounts receivable + Days' sales in inventory − Days' payable outstanding Cash conversion cycle Time = 53 + 70 − 63 = 60

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $161,500. Sales (53,000 units) = $954,000 Costs: Direct materials = $189,800 Direct labor = 240,300 Fixed factory overhead = 101,500 Variable factory overhead = 150,300 Fixed marketing costs = 110,300 Variable marketing costs = 50,300 842,500 Pretax income = $111,500

61,197 Revenues − Variable Costs = Contribution Margin$954,000 − ($189,800 + $240,300 + $150,300 + $50,300) = Contribution Margin$954,000 − $630,700 = $323,300 $323,300/53,000 units to be sold = $6.10 budgeted contribution margin per unit Budgeted unit sales = Total Fixed Costs + Target Pretax Income / CM Per Unit Budgeted unit sales = [($101,500 + $110,300) + $161,500]/$6.10 Budgeted unit sales = $373,300/$6.10 Budgeted unit sales = 61,196.721 or 61,197

Using the information below, compute the raw materials inventory turnover: Raw materials used: $149,600 Beginning raw materials inventory 19,400 Ending raw materials inventory 21,600

7.30 Raw materials inventory turnover = Raw materials used/Average raw materials inventory Raw materials inventory turnover = $149,600/[($19,400 + $21,600/2] Raw materials inventory turnover = $149,600/$20,500 = 7.30

A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Activity Cost Pool | Budgeted Cost | Product A | Product B | Product C Activity 1 $82,000 7,200 10,200 21,200 Activity 2 $57,000 8,200 16,200 9,200 Activity 3 $106,000 3,700 2,200 2,825 Which of the following statements is true regarding this company's activity rates?

The activity rate under the activity-based costing system for Activity 2 is $1.70 $57,000/(8,200 + 16,200 + 9,200) = $1.70