20. The Friday Company had the following functional income statement for the month of January 2021: Sales ($10 x 40,000 units) $400,000 Cost of goods sold: Direct materials $100,000 Direct labor 40,000 Variable factory overhead 120,000 Fixed factory overhead 26,000 (286,000) Gross profit $114,000 Selling and administrative expenses: Variable $24,000 Fixed 24,000 (48,000) Net income $66,000 There were no beginning and ending inventories. Required: a. Prepare a contribution income statement. b. Calculate the contribution margin per unit. c. Calculate the contribution margin ratio. PLEASE SHOW ALL WORK, THANK YOU

20. The Friday Company had the following functional income statement for the month of January 2021: Sales ($10 x 40,000 units) $400,000 Cost of goods sold: Direct materials $100,000 Direct labor 40,000 Variable factory overhead 120,000 Fixed factory overhead 26,000 (286,000) Gross profit $114,000 Selling and administrative expenses: Variable $24,000 Fixed 24,000 (48,000) Net income $66,000 There were no beginning and ending inventories. Required: a. Prepare a contribution income statement. b. Calculate the contribution margin per unit. c. Calculate the contribution margin ratio. PLEASE SHOW ALL WORK, THANK YOU

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
The DesMaris Company had the following income statement for the month of November 2018: DesMaris CompanyIncome StatementFor the Month of November 2018 Sales ($60 × 10,000) $600,000 Cost of goods sold: Direct materials ($12 × 10,000) $120,000 Direct labor ($9 × 10,000) 90,000 Variable factory overhead ($7.50 × 10,000) 75,000 Fixed factory overhead 120,000 405,000 Gross profit $195,000 Selling and administrative expenses: Variable ($1.50 × 10,000) $15,000 Fixed 90,000 105,000 Operating income $90,000 DesMaris Company's break-even sales volume is a.10,000 units. b.11,211 units. c.7,000 units. d.20,000 units.
Reyes Company has the following data on July 31, 2021: Factory Overhead 100,000 Decrease in Inventories Raw Materials 5,000 Work in Process 10,000 Increase in Inventories Finished Goods 7,000 The manufacturing overhead represents 60% of direct labor cost. 50% of the total manufacturing cost is allocated to Direct Materials. Compute for the following: 1. Materials Purchases 2. Conversion Cost 3. Cost of Goods Sold
The following information relates to the activities of the production department of Will Smith Sdn Bhd for the month of March 2019: Production Department Order Number 123 Direct materials consumed 120,000 20 Direct wages 180,000 25 Overhead chargeable 150,000 Direct labor hours worked 30,000 5 Machine hours operated 10,000 2 The company adds a margin of 50 per cent to the total production cost of specific units in order to cover administration expenses and to provide a profit. Required: a) Calculate the total selling price of order number 123 if overhead is absorbed using the following methods of overhead absorption: I. Direct labor hours II. Machine hours b) State which of the two methods you would recommend for the production department.
1. FAN Company has the following data for the year 2021 (in thousand) January 1, 2021 December 31, 2021 Raw Materials Inventory $16,300 $15,000 Work-in-process Inventory $40,000 $40,110 Finished Goods Inventory $49,600 $44,256 During 2021 the amount of raw material purchased was $21,700 and direct labor costs incurred were $10,100. The finance department also provides the following additional data : Factory Machinery Rent $ 1,840 Indirect Materials $ 3,400 Delivery Expense $ 760 Factory Utilities $ 1,200 Depreciation on Factory Building $ 3,500 Sales Commissions $ 340 Administrative Expense 1,620 Factory Insurance $ 1,266 Sales Revenue $ 98,600 Factory Manager's Salary $ 2,240 Indirect Labor $ 5,670 Instructions: b. Prepare an Income Statement for the year ended 2021! %24
1. FAN Company has the following data for the year 2021 (in thousand) January 1, 2021 December 31, 2021 Raw Materials Inventory $16,300 $15,000 Work-in-process Inventory $40,000 $40,110 Finished Goods Inventory $49,600 $44,256 During 2021 the amount of raw material purchased was $21,700 and direct labor costs incurred were $10,100. The finance department also provides the following additional data : Factory Machinery Rent 1,840 Indirect Materials $ 3,400 Delivery Expense $ 760 Factory Utilities $ 1,200 Depreciation on Factory Building 3,500 Sales Commissions $ 340 Administrative Expense $ 1,620 Factory Insurance $ 1,266 Sales Revenue $ 98,600 Factory Manager's Salary $ 2,240 Indirect Labor $ 5,670 Instructions: a. Prepare a cost of goods manufactured schedule for FAN Company for 2021! %24
1. FAN Company has the following data for the year 2021 (in thousand) January 1, 2021 December 31, 2021 Raw Materials Inventory $16,300 $15,000 Work-in-process Inventory $40,000 $40,110 Finished Goods Inventory $49,600 $44,256 During 2021 the amount of raw material purchased was $21,700 and direct labor costs incurred were $10,100. The finance department also provides the following additional data : Factory Machinery Rent $ 1,840 Indirect Materials $ 3,400 Delivery Expense $ 760 Factory Utilities $4 1,200 Depreciation on Factory Building $ 3,500 Sales Commissions $ 340 Administrative Expense $ 1,620 Factory Insurance $ 1,266 Sales Revenue $ 98,600 Factory Manager's Salary $ 2,240 Indirect Labor $ 5,670 Instructions: c. Assume that FAN Company's accounting records show the balance of the following current asset accounts on December 31, 2021 (in thousand): Cash $110,250 Accounts Receivable $ 12,440 Prepaid Expenses $9,250 Supplies $ 500 Short-Term Investment $ 550 Prepare the current…
Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: 1 Sales (28,800 × $75) $2,160,000.00 2 Manufacturing costs (28,800 units): 3 Direct materials 1,209,600.00 4 Direct labor 316,800.00 5 Variable factory overhead 115,200.00 6 Fixed factory overhead 221,760.00 7 Fixed selling and administrative expenses 28,400.00 8 Variable selling and administrative expenses 34,900.00 The company is evaluating a proposal to manufacture 36,000 units instead of 28,800 units, thus creating an ending inventory of 7,200 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. Required: a. Prepare an estimated income statement, comparing operating results if 28,800 and 36,000 units are manufactured in (1) the absorption costing…
The following cost incurred by Lucky corporation for October 2019 were as follows: Direct Materials used, P20,000 Indirect materials used, P1,000 Direct labor, P9,000 Indirect labor, P5,000 Other factory cost, P5,000 Selling expenses,P10,000 Administrative expenses, P12,000 Question: How much is the total product cost? a. P62,000 b. P50,000 c. P29,000 d. P40,000 Plz answer fast without plagiarism and don't copy answer plz