The Silverman Company spent $14,000 on direct supplies and $19,000 on the salary of production personnel in its first year of business. General, selling, and administrative costs came to $8,000 while lease payments and utilities for the production facilities came to $17,000. At a cost of $15.00 per unit, the company produced 5,000 units, of which 3,000 were sold. When was the year's operating net profit for Silverman? $7,000 $12,000 $28,000 $37,000

The Silverman Company spent $14,000 on direct supplies and $19,000 on the salary of production personnel in its first year of business. General, selling, and administrative costs came to $8,000 while lease payments and utilities for the production facilities came to $17,000. At a cost of $15.00 per unit, the company produced 5,000 units, of which 3,000 were sold. When was the year's operating net profit for Silverman? $7,000 $12,000 $28,000 $37,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?
During its first year of operations, Silverman Company paid $16,360 for direct materials and $10,300 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,300 while general, selling, and administrative expenses totaled $4,800. The company produced 6,200 units and sold 3,800 units at a price of $8.30 a unit. What is Silverman's cost of goods sold for the year?
During its first year of operations, Silverman Company paid $14,000 for direct materials and $ 19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What was Silverman's net income for the first year in operation? Multiple Choice $37,000 $12,000 $ 7,000 $28,000
brahim Corporation has the following estimated costs for the year:Direct Materials Rs. 20,000 Factory Rent Rs. 10,000 Sales Salaries Rs. 50,000 Factory Depreciation Rs. 5,000 Direct Labor Rs. 25,000 Foreman’s Salary Rs. 20,000 Indirect Material Rs. 4,000 Indirect Labor Rs. 3,000 Ibrahim Corporation estimates that 25,000 labor-hours will be worked during the year. If FOH rate is applied on the basis of direct labor hours, the overhead rate per hour will be:
During its first year of operations, Silverman Company paid $9,160 for direct materials and $9,700 for production workers' wages. Lease payments and utilities on the production facilities amounted to $8,700 while general, selling, and administrative expenses totaled $4,200. The company produced 5,300 units and sold 3,200 units at a price of $7.70 a unit. What is Silverman's cost of goods sold for the year? Multiple Choice O $27,560 $13,923 $16,640 $23,060
During its first year of operations, Connor Company paid $26,310 for direct materials and $18,100 In wages for production workers. Lease payments and utilities on the production facilities amounted to $7,100. General, selling, and administrative expenses were $8,100. The company produced 5,100 units and sold 4,100 units for $15.10 a unit. The average cost to produce one unit Is which of the following amounts? Multiple Choice O O O O $10.10 $8.15 $12.56 $11.69
Chillingsworth Industries Inc., operating at full capacity, sold 35,000 units at a price of $90 per unit during the current year. Its income statement is as follows: Sales $3,150,000 Cost of goods sold 1,280,000 Gross profit $1,870,000 Expenses: Selling expenses $320,000 Administrative expenses 620,000 Total expenses 940,000 Income from operations $930,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 75% 25% Selling expenses 60% 40% Administrative expenses 40% 60% Management is considering a plant expansion program for the following year that will permit an increase of $720,000 in yearly sales. The expansion will increase fixed costs by $270,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total fixed costs and the total variable costs for the current year. Total variable costs $ Total fixed costs…
Chillingsworth Industries Inc., operating at full capacity, sold 35,000 units at a price of $90 per unit during the current year. Its income statement is as follows: Sales $3,150,000 Cost of goods sold 1,280,000 Gross profit $1,870,000 Expenses: Selling expenses $320,000 Administrative expenses 620,000 Total expenses 940,000 Income from operations $930,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 75% 25% Selling expenses 60% 40% Administrative expenses 40% 60% Management is considering a plant expansion program for the following year that will permit an increase of $720,000 in yearly sales. The expansion will increase fixed costs by $270,000 but will not affect the relationship between sales and variable costs. 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following…
Chillingsworth Industries Inc., operating at full capacity, sold 35,000 units at a price of $90 per unit during the current year. Its income statement is as follows: Sales $3,150,000 Cost of goods sold 1,280,000 Gross profit $1,870,000 Expenses: Selling expenses $320,000 Administrative expenses 620,000 Total expenses 940,000 Income from operations $930,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 75% 25% Selling expenses 60% 40% Administrative expenses 40% 60% Management is considering a plant expansion program for the following year that will permit an increase of $720,000 in yearly sales. The expansion will increase fixed costs by $270,000 but will not affect the relationship between sales and variable costs. 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that…
The Rafan Company manufactures a product which is sold at Rs.16 each. Under present business conditions, the company is operating at 30% normal capacity with production and sales of 8,000 units per month. An analysis of costs for a recent month sows: Direct Materials Rs. 10,000 Direct Labor 12,000 Superintendent’s salary 5,000 Depreciation Building 2,000 Heat and light 500 Indirect labor 6,000 Deprecation of machinery 3,000 Machinery Repair 1,000 Fire Insurance 1,500 Miscellaneous 8,00 Factory Rent 5,000 Property Tax 400 Total Rs. 47,200 The total marketing expenses were Rs. 50,000, which included 3,000 for packing and shipping. The sales on the special order would require a similar unit cost for packing and shipping. The total administrative and general costs were Rs. 7,000. An offer has been received from a large chain store to purchase 96,000 units to be shipped in equal months each month during the coming year. These units would be manufactured with slight immaterial modifications…
Whipple Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company uses machine hours to allocate manufacturing overhead and estimated 10,450 machine hours would be used during the year. For the year, manufacturing overhead was under-allocated by $13,400. The company's actual manufacturing overhead is $91,000. What is the actual gross profit? Select one: a. $250,000 b. $159,000 c. $236,600 d. $104,400 e. $263,400
Suppose a company has a sale of Rs. 200,000 for the year. The cost structure is given as follows: Raw materials is 60% of sales, labour is 15% of sales, overheads is 10% of sales. The profit is 15% sales and total cost is 85% sales. What is the amount of current assets for the year if the holding periods are as follows: Raw material 15 days, work in progress 7 days, finished goods 15 days and debtors 30 days. Assume 365 days in a year. Group of answer choices Rs.35679 Rs.25789 Rs.41907 Rs.31137 Rs.40000