1:

Direct materials balance:

Beginning inventory

$72,000

Purchases

304,000

Ending inventory

12,000

Direct manufacturing labour

64,000

Manufacturing overhead

68,000

Ending work in process inventory

20,000

Beginning work in process inventory

4,000

Ending finished goods inventory

152,000

Beginning finished goods inventory

112,000

1.What is Jupiter's cost of direct materials used during the year?

a.$356,000

b.$360,000

c.$308,000

d.$372,000

e.$364,000

2.What is Jupiter's cost of goods sold?

a.$520,000

b.$440,000

c.$464,000

d.$400,000

e.$516,000

3.What is Jupiter's cost of goods manufactured?

a.$536,000

b.$496,000

c.$480,000

d.$476,000

e.$512,000

Answer the following question(s) using the information below.

Burger Bob's Boathouse sells only one product. 7,000 units were sold in a year resulting in $70,000 of sales revenue. Variable costs were $30,030 for the year, and fixed costs were $12,000.

4.Contribution margin per unit is

a.$4.29

b.$4.00

c.$6.00

d.$10.00

e.$5.71

5.Break-even point in volume is

a.2,101.57 units.

b.2,101.58 units.

c.2,102 units.

d.2,101.6 units.

e.2,101 units.

6.The number of units required to be sold to achieve $52,350 of operating profit is

a.11,269.35 units.

b.11,269 units.

c.11,270 units.

d.11,269.4 units.

e.2,102 units.

2:

Julia Child Company sells baby car seats to retailers for an average of $91 each. The variable cost of each car seat is $46 and monthly fixed selling costs total $7,000. Other monthly fixed costs of the company total $8,500

Required:

7.What is the breakeven point in number of car seats?

8.What is the margin of safety, assuming sales total $48,000?

9.What is the breakeven level in car seats, assuming variable costs increase by 20%?

10.What is the breakeven level in car seats, assuming the selling price goes up by 10%, fixed selling costs decline by 10%, and other fixed costs decline by $1,000?