Assignment
Question 1. The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just-completed year.
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Sales
|
$950
|
|
Purchases of raw materials
|
$225
|
|
Direct labor
|
$250
|
|
Manufacturing overhead
|
$295
|
|
Administrative expenses
|
$150
|
|
Selling expenses
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$140
|
|
Raw materials inventory, beginning
|
$30
|
|
Raw materials inventory, ending
|
$45
|
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Work-in-process inventory, beginning
|
$20
|
|
Work-in-process inventory, ending
|
$55
|
|
Finished goods inventory, beginning
|
$100
|
|
Finished goods inventory, ending
|
$135
|
Prepare a Schedule of Cost of Goods Manufactured statement in the text box below.
Question 2. The Florida Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
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Percentage Completed
|
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Units
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Materials
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Conversion
|
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Work in process, June 1
|
160,000
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65%
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45%
|
|
Work in process, Jun 30
|
130,000
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75%
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65%
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The department started 650,000 units into production during the month and transferred 680,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.
Question 3. A tile manufacturer has supplied the following data.
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Boxes of tile produced and sold
|
625,000
|
|
Sales revenue
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$2,975,000
|
|
Variable manufacturing expense
|
$1,720,000
|
|
Fixed manufacturing expense
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$790,000
|
|
Variable selling and admin expense
|
$152,000
|
|
Fixed selling and admin expense
|
$133,000
|
|
Net operating income
|
$180,000
|
Required:
Calculate the company's unit contribution margin.
Calculate the company's contribution margin ratio.
If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?
Question 4. Johnson Company, which has only one product, has provided the following data concerning its most recent month of operations.
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Selling price
|
$175
|
|
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
9,500
|
|
Units sold
|
8,000
|
|
Units in ending Inventory
|
1,500
|
|
|
|
Variable costs per unit:
|
|
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Direct materials
|
$50
|
|
Direct labor
|
$36
|
|
Variable manufacturing overhead
|
$2
|
|
Variable selling and admin
|
$10
|
|
|
|
Fixed costs:
|
|
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Fixed manufacturing overhead
|
$300,000
|
|
Fixed selling and admin
|
$100,000
|
Required:
What is the unit product cost for the month under variable costing?
What is the unit product cost for the month under absorption costing?
Prepare an income statement for the month using the variable costing method.
Prepare an income statement for the month using the absorption costing method.