High Return Manufacturing company has a beginning finishedgoods inventory of $14,600, raw material purchases of $18,000,cost of goods manufactured of $32,500, and an ending finishedgoods inventory of $17,800. The cost of goods sold for thiscompany is:A. $21,200.B. $29,300.C. $32,500.D. $47,100.E. $27,600.Paradise Corporation budgets on an annual basis for its fiscalyear. The following beginning and ending inventory levels (inunits) are planned for next year.Beginning Inventory Ending InventoryRaw material* 55,000Finished goods 95,00065,00065,000* Three pounds of raw material are needed to produce eachunit of finished product.If Paradise Corporation plans to sell 555,000 units during nextyear, the number of units it would have to manufacture duringthe year would be:a. 525,000 unitsb. 500,000 unitsc. 555,000 unitsd. 585,000 units

Question 1: Cost of Goods Sold Calculation High Return Manufacturing company has:Beginning finished…

Answered: High Return Manufacturing company has a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bernoulli's business budget included sales of $ 350 000 and fixed costs of $ 52 600. If the total contribution margin for the business was $125 000:a)Find the contribution rate as a percentage approximated to the nearest 100th. b)What are the sales needed to break even? Round to the nearest hundred.
Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Income Statement (Absorption Costing) Sales (80,000 units × $45 per unit) $ 3,600,000 Cost of goods sold 2,000,000 Gross profit 1,600,000 Selling and administrative expenses 560,000 Income $ 1,040,000 Additional Information Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit consists of the following. Direct materials $ 4 per unit Direct labor $ 10 per unit Variable overhead $ 4 per unit Fixed overhead ($700,000 / 100,000 units) $ 7 per unit Required:Prepare an income statement for the company under variable costing.
Ellie Manufacturing Company produces three products: A, B, and C. The income statement for the most recent year is as follows: $200,000 Sales Less: Variable cost Contribution margin Less fixed cost: Manufacturing Selling and administrative Sales 34,000 Operating income $39,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows: Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common expenses $ $20,000 14,000 $ $ A $60,000 Contribution margin ratio Direct fixed expenses of products Required: Prepare income statements segmented by products. Include a column for the entire firm in the statement. Ellie Manufacturing Company Segmented Income Statement For the Most Recent Year A B 127,000 $73,000 $40,000 30% $8,000 $5,000 35% C B $ C Total $100,000 40% $4,000
Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current month: Direct materials costs $30,000 Direct labor costs 55,000 Variable manufacturing overhead costs 20,000 Fixed manufacturing overhead costs 25,000 Variable Selling and Administrative expenses 15,000 Fixed Selling and Administrative expenses 10,000 The product costs per unit under absorption costing would be: Group of answer choices $15.50 per unit $10.50 per unit $2.5 per unit $13 per unit
Assume that projected revenue for 2018 is 1,058,949. Also assume the following projected 2018 costs in each of the cost categories from question one: Packaged (Cans & Bottles) $140,847 Kegs $65,238 Shrinkage/WIP Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $30,000 Trade Promotion $30,000 Sales Promotion $18,000 Salaries & Benefits $180,000 Given these costs, compute Shannon’s projected contribution in dollars.
How many units must be sold if the company wishes to earn a net profit of R298 920. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Crane Inc. had sales of $2,390,000 for the first quarter of 2022 (it sold 239,000 units). In making the sales, the company incurred the following costs and expenses. Cost of goods sold Selling expenses Administrative expenses Sales Prepare a CVP income statement for the quarter ended March 31, 2022. (Round per unit answers to 2 decimal places, e.g. 15.25.) Variable Costs Contribution Margin Fixed Costs Variable $976,000 116,000 103,000 Net Income/(Loss) Fixed $488,000 95,000 129,000 CRANE INC. CVP Income Statement For the Quarter Ended March 31, 2022 V Total $ Per Unit Percent of Sales 100 % % %
Abhaliya
Wang Company manufactures and sells a single product that sells for $640 per unit; variable costs are $352 per unit. Annual fixed costs are $985,500. Current sales volume is $4,390,000. Management targets an annual income of $1,315,000. Compute the unit sales to earn the target income. Select one: a. 6.164. Ob. 7,988. O c. 19,383. O d. 3,422. Oe. 4,934.
Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current month: Cost Information for Producing 10,000 Units Accounts Amount Direct materials costs $30,000 Direct labor costs $55,000 Variable manufacturing overhead costs $20,000 Fixed manufacturing overhead costs $25,000 Variable Selling and Administrative expenses $15,000 Fixed Selling and Administrative expenses $10,000 The product costs per unit under variable costing would be: Group of answer choices $10.50 per unit $13 per unit $15.50 per unit $12 per unit
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Total Department Hardware Linens Sales $ 4,000,000 $ 3,000,000 $ 1,000,000 Variable expenses 1,300,000 900,000 400,000 Contribution margin 2,700,000 2,100,000 600,000 Fixed expenses 2,200,000 1,400,000 800,000 Net operating income (loss) $ 500,000 $ 700,000 $ (200,000) A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 10% decrease in the sales of the Hardware Department. Based on the visualization: The relevant fixed cost in the decision to discontinue the Linens Department is: multiple choice 1 $340,000. $460,000. $800,000. $600,000. The total foregone contribution margin associated with dropping…
Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Income Statement (Absorption Costing) Sales (80,000 units x $45 per unit) Cost of goods sold Gross profit Selling and administrative expenses Income Additional Information $ 3,600,000 2,000,000 1,600,000 490,000 $ 1,110,000 a. Selling and administrative expenses consist of $350,000 in annual fixed expenses and $1.75 per unit in variable selling and administrative expenses. b. The company's product cost of $25 per unit consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($700,000 / 100,000 units) Required: $ 5 per unit $ 10 per unit $ 3 per unit $ 7 per unit Prepare an income statement for the company under variable costing. TREZ Company

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