The Tobler Company has budgeted production for next year as follows: Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be:

The Tobler Company has budgeted production for next year as follows: Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be:

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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Cracked Inc. manufactures a single product and uses the FIFO method of process costing. Direct materials are added at the beginning of the production process. Conversion costs are incurred evenly throughout production. Inspection takes place at the end of the production process. After inspection, some units are spoiled due to defects. Spoiled units generally constitute 2% of the good units transferred out (this is normal spoilage). Assume all spoilage is from the current month's production. Data provided for September is as follows: Units: WIP, beginning inventory WIP, ending inventory Started in September Good units completed and transferred out 12,500 5,700 54,000 58,500 Beginning work in process was 40% complete with respect to conversion. Ending work in process was 20% complete with respect to conversion. Costs: WIP, beginning inventory: $ 66,415 $ 37,622 Direct material cost Conversion costs Costs added: $160,920 $119,574 Direct material costs added Conversion costs added
A9
Table 13-1 Price Total Revenue Quantity (dollars) (dollars) 12 345 $7.50 $7.50 7.00 14.00 6.50 19.50 6.00 24.00 5.50 27.50 6 5.00 30.00 Refer to Table 13-1. What portion of the marginal revenue of the 5th unit is due to the output effect and what portion is due to the price effect? O output effect = $5.50; price effect = -$2.00 O output effect = $3.00; price effect = $0.50 O output effect = $1.50; price effect = $2.00 O output effect = $4.00; price effect = -$0.50
Sales per unit $15.00Variable production cost 8.00Annual fixed production cost 35,000.00Variable selling expense (unit) 3.00Annual fixed selling expense 15,000.00Produced 12,500 units during the periodNo inventory at January 1 (beg.)Sold 10,000 units Total variable annual cost charged to expense in direct costinga. $110,000b. $117,500c. $80,000 d. $100,000 6. Total fixed cost charged against current year’s operations in absorption costinga. P35,000 b. $25,000 c. $15,000 d. $43,000
Sales per unit P15.00Variable production cost 8.00Annual fixed production cost 35,000.00Variable selling expense (unit) 3.00Annual fixed selling expense 15,000.00Produced 12,500 units during the periodNo inventory at January 1 (beg.)Sold 10,000 units 21. The ending inventory under direct costing isa. P25,000 b. P27,500 c. P20,000 d. P32,500 22. Ending inventory under absorption costing isa. P32,500 b. P20,000 c. P25,000 d. P27,000
Problem 1. (40%) The EG Company produces and sells one product. The following data refer to the year just completed:Units in beginning inventory ..........................0Units produced................................................8,900Units sold........................................................8,500Units in ending inventory ...............................400Variable costs per unit:Direct materials ...........................................$26Direct labor..................................................$25Variable manufacturing overhead ...............$4Variable selling and administrative expense.................................................................$4Fixed costs:Fixed manufacturing overhead ....................$249,200Fixed selling and administrative expense....$17,000Sales Price is $100 per unit.Required: b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing.d.…
Blue Spruce Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Sales Cost of goods sold Selling and administrative expenses Net income Amount $5,049,000 3,465.000 445,500 $1.138,500 Per Unit $51.00 35.00 4.50 $11.50 Fixed costs for the period were cost of goods sold of $990,000, and selling and administrative expenses of $178.200. In July, normally a slack manufacturing month, Blue Spruce receives a special order for 9.900 basketballs at $32,00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unit because of shipping costs, but it would not increase fixed costs and expenses.
Selling price per unit $ 100Variable expenses per unit $ 40Fixed expenses per month $ 60,000 The contribution margin ratio is: a. 40% b. 60% c. 62.5% d. 70%