Assignment
1. O&A Corporation, a merchandising company, reported the following results for September:
Number of units sold.............................. 7,400
Selling price per unit ...............................$677
Cost of goods sold ..........................$3,263,000
Variable selling expense per unit ................ $54
Total fixed selling expense .................$155,600
Variable administrative expense per unit ...... $24
Total fixed administrative expense ........$370,400
You are required to:
1. Prepare a contribution format income statement for May
2. Prepare a traditional format income statement for May.
Questions:
1. What is the total variable selling expense? (Contribution income statement format)
2. What is the total variable expense? (Contribution income statement format)
3. What is the contribution margin? (Contribution income statement format)
4. What is the gross margin? (Traditional income statement format)
5. What is the total administrative expense? (Traditional income statement format)
6. What is the net operating income? (Traditional income statement format)
2. Maintenance costs at Planet Corporation factory are listed below:
|
|
Machine-Hours
|
Maintenance Cost
|
|
April
|
3,135
|
$48,340
|
|
May
|
3,095
|
$47,993
|
|
June
|
3,133
|
$48,345
|
|
July
|
3,157
|
$48,548
|
|
September
|
3,065
|
$47,733
|
|
October
|
3,084
|
$47,880
|
|
November
|
3,125
|
$48,247
|
|
December
|
3,098
|
$48,014
|
Management believes that maintenance cost is a mixed cost that depends on machine-hours.
Use the high-low method to estimate the variable and fixed components of this cost.
1. What is the variable cost per unit?
2. What is the fixed cost?
3. Management of Lewallen Corporation has asked your help as an intern in preparing some key reports for September. Direct materials cost was $57,000, direct labor cost was $43,000, and manufacturing overhead was $71,000. Selling expense was $15,000 and administrative expense was $32,000.
What is the prime cost for September?
4. Abare Corporation reported the following data for the month of December:
|
Direct materials
|
$63,000
|
|
Direct labor cost
|
$52,000
|
|
Manufacturing overhead
|
$77,000
|
|
Selling expense
|
$26,000
|
|
Administrative expense
|
$36,000
|
What is the conversion cost for December?
5. The following cost data relate to the manufacturing activities for the company:
|
Finished goods Inventory, Beginning
|
$18,000
|
|
Finished goods Inventory, ending
|
$12,750
|
|
Administrative expenses
|
$20,000
|
|
Manufacturing overhead cost incurred
|
$48,000
|
|
Purchase of raw materials
|
$32,000
|
|
Raw materials inventory, beginning
|
$8,000
|
|
Raw materials inventory, ending
|
$7,000
|
|
Direct labor cost
|
$40,000
|
|
Work in progress, beginning
|
$6,000
|
|
Work in progress inventory, ending
|
$7,500
|
|
Sales
|
$350,000
|
|
Selling expenses
|
$35,000
|
The company uses a predetermined overhead rate of to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine hours was recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials.
Calculate the following:
1. Raw materials used in production
2. Manufactured Overhead applied
3. Total manufacturing cost
4. Cost of goods manufactured
5. Unadjusted Cost of goods sold
6. Adjusted Cost of Goods Sold
7. Gross margin
8. Net operating income.
Attachment:- Chapter-1-and-2.rar