Problem: Module 5 Textbook Problem 5Learning Objective: 5-5 Prepare an income statement using the contribution margin approachEstrada Corporation produced 220,000 watches that it sold for $19 each. The company determined that fixed manufacturing cost perunit was $9 per watch. The company reported a $1,100,000 gross margin on its financial statements.RequiredDetermine the variable cost per unit, the total variable product cost, and the total contribution margin.Variable cost per unitTotal variable product costTotal contribution margin

The contribution margin is calculated as the difference between the sales and variable costs. The…

Problem: Module 5 Textbook Problem 5 Learning Objective: 5-5 Prepare an income statement using the contribution margin approach Estrada Corporation produced 220,000 watches that it sold for $19 each. The company determined that fixed manufacturing cost p unit was $9 per watch. The company reported a $1,100,000 gross margin on its financial statements. Required Determine the variable cost per unit, the total variable product cost, and the total contribution margin. Variable cost per unit Total variable product cost Total contribution margin

Problem: Module 5 Textbook Problem 5 Learning Objective: 5-5 Prepare an income statement using the contribution margin approach Estrada Corporation produced 220,000 watches that it sold for $19 each. The company determined that fixed manufacturing cost p unit was $9 per watch. The company reported a $1,100,000 gross margin on its financial statements. Required Determine the variable cost per unit, the total variable product cost, and the total contribution margin. Variable cost per unit Total variable product cost Total contribution margin

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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QUESTION 6 Chenwang Manufacturing has 18,000 labor hours and 120,000 grams of material. The cost of labor per hour is $10, and material costs 60 cents per gram. The company manufactures three products: A, B and c. Quantity of material used per unit of each product, labor time used, demand, and selling price are given in the table below. Production has to equal or exceed demand. A B Material used per unit (grams) 15 9. 12 Labor hours per unit 1.5 2 Projected demand 2000 3500 3000 Price per unit $60 $40 $45 Refer to Chenwang Manufacturing. At the optimum solution, which of the three products gives you the highest revenues? A. Product A B. Product B O. Product C O D. Two (or all three) products yield the same revenue
Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $230 and of each door is $560. The variable cost of each window is $140 and of each door is $380. Fixed costs are $596,700. (1) Compute the weighted-average contribution margin. Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: 1 Denominator: (3) Compute the number of units of each product that will be sold at the break-even point. Windows Doors units units = = Break Even Units Break Even Units
Saved He Homework Estrada Corporation produced 211,000 watches that it sold for $19 each. The company determined that fixed manufacturing cost per unit was $8 per watch. The company reported a $1,266,000 gross margin on its financial statements. Required Determine the variable cost per unit, the total variable product cost, and the total contribution margin. Variable cost per unit Total variable product cost Total contribution margin
Brief Exercise 11-3 (Algo) Contribution margin income statement LO 11-3 Lite Packs Company (LPC) makes and sells ultra-light backpacks. During Year 1, LPC sold 1,600 backpacks for $51 each. Each backpack has a variable cost of $28 and the company had total fixed cost $5,400. Required: Prepare a contribution format income statement for Lite Packs Company. LITE PACKS COMPANY Income Statement Accounts payable $ 0 EA $ 0
Problem: Module 6 Textbook Problem 7 Learning Objective: 6-4 Make appropriate segment elimination decisions Perez Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) PEREZ COMPANY Income Statements for Year 2 Complete this question by entering your answers in the tabs below. Required A Required B PEREZ COMPANY Comparative Income Statements for the Year 2 Decision Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income Keep Seg. A Eliminate Seg. A A $ 166,000 (128,000) (21,000) Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole…
Question C
QUESTION 1.3 HOW MANY CAKES TO GENERATE $1,100 PROFIT Please explain how many cakes would need to be sold to generage a profit of $1,100 based on the information below. Price per cake $14.71 Variable Costs Ingredients $2.25 Direct Labor $1.02 Overhead $.2 Fixed Cost per month $4,476
A 1 Chapter 7: Applying Excel 2 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 7 8 Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead 9 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year 14 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 25 Units in beginning inventory 26 Units produced during the year 27 Units sold during the year 28 Units in ending inventory 29 30 Compute the Absorption Costing Unit Product Cost 31 32 Direct materials 33 Direct labor 34 Variable manufacturing overhead 35 Fixed manufacturing overhead 36 Absorption costing unit product cost 37 19 20 Enter a formula into each of the cells marked with a ? below 21 Review Problem 1: Contrasting Variable and Absorption Costing 22 23 Compute the Ending Inventory 24 46 Compute the Variable Costing Unit Product Cost 47 48 Direct materials 49 Direct labor…
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Please do not give solution in image format thanku
Question 2 Use the following standard cost card for 1 gallon of ice cream to answer the questions. STANDARD COST CARD Product: Gallon of Ice Cream Standard Cost Manufacturing Cost Information Standard Cost Quantity per Unit Summary Direct Materials Cream 5 quarts $1.15 per quart $0.08 per ounce $36.00 per hour $5.75 Sugar 16 ounces $1.28 Direct Labor 3 minutes $1.80 Total Direct Costs $8.83 Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. C. Compute the material and labor variances. D. Comment on the results and possible causes of the variances.
Question 4