Expert Answers

Expert Answers

1. The following data (in thousands of dollars) have been taken from the accounting records of Larklin Corporation for the just-completed year. 
Purchases of raw materials
Direct labor
Manufacturing overhead
Administrative expenses
Selling expenses
Raw materials inventory, beginning
Raw materials inventory, ending
Work-in-process inventory, beginning
Work-in-process inventory, ending
Finished goods inventory, beginning
Finished goods inventory, ending
Prepare a Schedule of Cost of Goods Manufactured statement in the text box below. (Points : 15) 

Question 2. 2. (TCO B) The Florida Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below. 
Percentage Completed
Work in process, June 1
Work in process, Jun 30
The department started 650,000 units into production during the month and transferred 680,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs. (Points : 20) 

Question 3. 3. (TCO C) A cement manufacturer has supplied the following data. 
Tons of cement produced and sold
Sales revenue
Variable manufacturing expense
Fixed manufacturing expense
Variable selling and admin expense
Fixed selling and admin expense
Net operating income
Required: (this is the same question as the first question please apply the same answers)
Calculate the company's unit contribution margin: 
Calculate the company's contribution margin ratio.  
If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?

Question 4. 4. (TCO D) The Hampton Company produces and sells a single product. The following data refer to the year just completed. 
Selling price
Units in beginning inventory
Units produced
Units sold
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and admin
Fixed costs:
Fixed manufacturing overhead
Fixed selling and admin
Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. $0.001 and $5,45
Prepare an income statement for the year using absorption costing.  

Prepare an income statement for the year using variable costing. (Points : 30)
Powered by