-ing information 70,000 units @ $12 $ 840,000 90,000 units @ $8 cerial Cost ($259,000) or Cost ($233,000 erheads ($190,000) oss) $158,000 ional Information: cludes fixed cost $65,000 Is include fixed cost $36.000
-ing information 70,000 units @ $12 $ 840,000 90,000 units @ $8 cerial Cost ($259,000) or Cost ($233,000 erheads ($190,000) oss) $158,000 ional Information: cludes fixed cost $65,000 Is include fixed cost $36.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2uestion 3:
PQ Itd. is manufacturing product X and Y only. It provides the
following information
X
Sales X – 70,000 units @ $12 $ 840,000
Sales Y – 90,000 units @ $8
Total Material Cost
($259,000)
Total Labor Cost
($233,000
Total Overheads
($190,000)
Profit/(Loss)
$158,000
Additional Information:
Labour includes fixed cost
$65,000
Overheads include fixed cost $36,000
Required:
Calculate the Contribution per unit of Y & interpret the
answers.
Part B
Raw materials Purchases ... $290,000
Manufacturing overhead applied to work in process. . $285,000
Total actual manufacturing overhead costs. .... $270,000
Selling expenses.. $140,000
Direct labor....?
Admin expenses.
$100,000
Inventory balances were as follows:
Beginning of Year
$40,000
End of Year
Raw materials
Work in process
Finished goods.
$10,000
$35,000
$50,000
Cost of goods available for sale $740,000;
Net operating income was $30,000.
Unadjusted cost of goods sold totaled $660,000;
Total manufacturing costs for the year were $683,000
Required:
c) Find the missing figures.
d) Find whether the overheads applied are Underapplied or Over Applied .
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