1. Data concerning a recent period's activity in the Prep Department, the first processing department in a company that uses processing costs, appear below.
Material Conversion
Equivalent units of production in ending work in process
2,000
800
Cost per equivalent unit $13.86 $4.43
A total of 20,100 units were completed and transferred to the next processing department during the period.
Required:YOU MUST SHOW ALL WORK
Compute the cost of the units transferred to the next department during the period and the cost of the ending work in process inventory.
Question 2: Harris Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over the relevant range of 30,000 to 50,000 units produced and sold annually is given below:
Units Produced and Sold
30,000 40,000 50,000
Total Costs:
Variable costs $180,000 ? ?
Fixed costs 300,000 ? ?
Total Costs ? ?
Cost per unit:
Variable cost ? ? ?
Fixed cost ? ? ?
Total cost per unit ? ? ?
Required:YOU MUST SHOW ALL WORK
1. Complete the schedule of the company's total and unit costs above.
2. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribution format Income Statement for the year.
Question 3: Whirly Corporation's most recent Income Statement is shown below:
Total Per Unit
Sales (10,000 units) $350,000 $35.00
Variable expenses 200,000 20.00
Contribution Margin 150,000 $15.00
Fixed expenses 135,000
Net Operating income $ 15,000
Required:YOU MUST SHOW ALL WORK
Prepare a new contribution format Income Statement under each of the following conditions (consider each case independently):
1. The sales volume increases by 100 units.
2. The sales volume decreases by 100 units.
3. The sales volume is 9,000 units.