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Homework answers / question archive / Managerial Accounting ACCT_2011 Question 1 Use the following to answer questions A-B: Porter Company has provided the following data for the second quarter of the most recent year: Sales $330,000 Fixed Manufacturing Overhead $60,000 Direct Labour $77,200 Fixed Selling Expenses $46,250 Variable Manufacturing Overhead $40,850 Variable Administrative Expenses $49,700 Direct Materials $49,850 Fixed Administrative Expenses $44,000 Variable Selling Expenses $49,000 Assume that direct labour is a variable cost and that there were no beginning or ending inventories
Managerial Accounting ACCT_2011
Question 1
Use the following to answer questions A-B:
Porter Company has provided the following data for the second quarter of the most recent year:
Sales $330,000
Fixed Manufacturing Overhead $60,000
Direct Labour $77,200
Fixed Selling Expenses $46,250
Variable Manufacturing Overhead $40,850
Variable Administrative Expenses $49,700
Direct Materials $49,850
Fixed Administrative Expenses $44,000
Variable Selling Expenses $49,000
Assume that direct labour is a variable cost and that there were no beginning or ending inventories.
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A. What was the total contribution margin of Porter Company for the second quarter?
B. What was the gross margin for Porter Company for the second quarter?
Question 2
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Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed:
Direct materials used in production $108,000
Direct labour costs for the year $56,000
Work in process, beginning $21,200
Finished goods, beginning $47,000
Cost of goods available for sale $293,500
Cost of goods sold $227,500
Work in process, ending $18,500
A. What was the balance of the finished goods inventory at the end of the year?
B. What was the manufacturing overhead cost for the year?
Question 3
Use the following to answer questions A-B:
Activities in the Challenger Company's Assembly Department for the month of March follow:
Number Percent Completed
of Units Materials Conversion
Work-in-process inventory, March 1 7,500 60% 35%
Started into production during March 68,000
Work-in-process inventory, March 31 2,800 40% 30%
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A. Using the weighted-average method, what are the equivalent units of production for materials for March?
B. Using the FIFO method, what are the equivalent units of production for conversion for March?
Question 4 Use the following to answer questions A-C:
Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows:
Selling Price $47 per unit Variable Manufacturing Costs $21 per unit Variable Selling & Administrative Expenses $6 per unit Fixed Manufacturing Overhead $238,000 per year Fixed Selling & Administrative Expenses $337,000 per year
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A. What is the break-even point in units per year?
B. How many units need to be sold to earn an annual net income equal to 10% of sales?
C. In the current year, the company sold 43,000 units. Due to competition, management will be forced to lower the selling price by 10% next year. How many units must be sold next year to earn the same income as was earned in the current year? |
Question 5
Use the following to answer questions A-D:
The following data (in thousands of dollars) have been taken from the accounting records of Wingit Corporation for the year just ended.
Sales: $990
Raw materials inventory, beginning $55
Raw materials inventory, ending $82
Purchases of raw materials $138
Direct labour $212
Manufacturing overhead $247
Administrative expenses $150
Selling expenses $140
Work-in-process inventory, beginning $76
6 Work-in-process inventory, ending $50
Finished goods inventory, beginning $128
Finished goods inventory, ending $173
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A. What was the cost (in thousands of dollars) of the raw materials used in production during the year?
B. What was the cost of goods manufactured (finished) for the year (in thousands of dollars)?
C. What was the cost of goods sold (in thousands of dollars) for the year?\
D. What was the net income (in thousands of dollars) for the year?
Question 6
Use the following to answer questions A-B:
Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with estimated costs and expected activity as follows:
Activity Estimated Expected Activity
Cost Pool Cost Product A Product B
Activity 1 $17,680 650 120
Activity 2 $19,550 1,100 800
Activity 3 $ 10,381 60 170
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A. The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity-based costing system is closest to which of the following?
B. The cost per unit of Product B is closest to which of the following?