Questions -

Q1) During May, XYZ Company sold 8,000 units and reported the following income statement:

Sales - $400,000

Variable costs - 280,000

Fixed costs - 63,000

Net operating income - $ 57,000

Calculate the number of units that XYZ Company needed to sell during May to break-even. Enter your answer as a number (i.e., 1,000). Do not use the $, decimals, or type the word units after your answer.

Q2) During May, XYZ Company sold 8,000 units and reported the following income statement:

Sales - $400,000

Variable costs - 280,000

Fixed costs - 63,000

Net operating income - $ 57,000

Calculate the number of units XYZ Company must sell in order to earn a target profit equal to 20% of sales. Enter your answer as a number (i.e., 1,000). Do not use the $, decimals, or type the word units after your answer.

Q3) XYZ Company recorded the following information related to their inventory accounts for January:

January 1, 2003 January 31, 2003

Direct materials 15,000 ?

Work in process 15,000 10,000

Finished goods ? 7,000

Additional information is as follows:

Cost of goods manufactured - $26,000

Direct labor - 8,000

Applied overhead - 10,000

Net income - 40,000

S&A expenses - 20,000

Sales revenue - 90,000

Calculate the finished goods inventory balance on January 1. Do not use decimals in your answer.

Q4) The following information relates to ABC Company's utilities cost and activity for the first six months of 2001:

Month Utilities Costs Units Produced

January $17,200 6,200

February 14,500 5,300

March 18,600 7,100

April 13,700 4,800

May 15,800 5,900

June 12,900 4,600

ABC Company expects to produce 8,200 units during July. Using the high-low method, calculate ABC Company's expected utilities cost for July.

Q5) Betty DeRose, Inc. uses job order costing. Manufacturing overhead is applied to jobs using a PDR of 140% of direct labor cost. Additional information is as follows:

a. Job #101 was the only job in process at February 1 with costs as follows:

Direct materials - $ 4,000

Direct labor - 2,000

Applied overhead - 2,800

Total - $ 8,800

b. Jobs 102,103 and 104 were started during February.

c. Direct materials used during February totaled $26,000.

d. Direct labor costs of $20,000 were incurred in February.

e. Actual overhead costs incurred during February totaled $32,000.

f. The only job still in process at February 28 was Job #104 with costs of $2,800 for direct materials and $1,500 for direct labor. Calculate the cost of goods manufactured for February. Do not use decimals in your answer.

Q6) ABC Company recorded the following information related to their inventory accounts for 2007:

January 1, 2007 December 31, 2007

Direct materials ? 37,000

Work in process 38,000 41,000

Finished goods 22,000 35,000

ABC Company's accounting records for 2007 indicated the following costs had been incurred:

Direct materials purchased - $222,000

Depreciation, factory equipment - ?

Direct labor - ?

Utilities - ?

Sales commissions - 69,000

Indirect materials - 31,000

Depreciation, office equipment - 14,000

Production supervisor's salary - 74,000

Advertising - 52,000

Additional Information:

1. 60% of the utilities relate to the factory while 40% of the utilities relate to the general office building

2. Sales revenue for 2007 totaled $785,000; cost of goods manufactured was $438,000; and net income amounted to $213,000

3. There was no overhead variance (i.e., actual overhead = applied overhead)

Calculate the total cost of utilities incurred by ABC Company during 2007. Do not use decimals in your answer.

Q7) Jackson Company applies overhead to products using direct labor cost as the activity level. During 2008, Jackson Company had the following estimated costs:

Direct materials - $243,000

Direct labor - 200,000

Advertising expense - 35,000

Rent on factory building - 36,000

Depreciation - 60,000

Indirect materials - 20,000

Sales commissions - 50,000

Production supervisor's salary - 40,000

Insurance on sales equipment - 17,000

It is known that 70% of the depreciation relates to equipment in the factory while 30% of the depreciation relates to equipment in the administrative offices.

Jackson Company's accounting records indicated the following actual costs had been incurred during 2008:

Direct materials purchased - $237,000

Direct labor - 220,000

Total overhead cost - 125,000

Total selling & administrative costs - 130,000

Calculate the amount that Jackson Company's overhead was over-applied by in 2008. Do not use decimals or a minus sign in your answer. Additionally, do not type the word over-applied after your answer.