1. Green Company produces lamps. Each job is unique. In April 2009, it completed all outstanding orders, and then in May 2009, it worked on two jobs, J1 and 32: Green Company, May 2009 Direct materials Direct manufacturing labor Job J1 $75,000 300,000 Job J2 $120,000 210,000 Direct manufacturing labor is paid at the rate of $15 per hour. Manufacturing overhead costs are allocated at a budgeted rate of $20 per direct manufacturing labor-hour. Only Job J1 was completed in May. SHOW WORK a. Compute the total cost for Job 1 b. 1,000 lamps were produced for Job 11. Calculate the cost per lamp. C. Prepare the journal entry transferring Job J1 to finished goods. d. What is the ending balance in the Work-in-Process control account? The following data relates to units shipped and total shipping expense for the Adams Company Units shipped Month January February March April Total Shipping Expense $1,300 $1,600 6 4 $1,400 $1,500 May June July $1,700 $1,800 $1,200 Using the high-low method, provide the following. SHOW WORK a. Variable cost per unit b. Total fixed costs c. The cost formula for shipping expense 9. Macon Inc. has reported the following results for last year's operations: Sales Net operating income Average operating assets $400,000 $40,000 $100,000 a. Compute the margin, turnover, and return on investment. b. Top management has set a minimum required rate of return on average operating assets of 15%. What is the residual income for the year? 10. Trans-Circuits, Inc. manufactures circuit boards for personal computers. The normal selling price is $42 per board. The cost per circuit board is Direct material Direct labor Variable overhead Fixed overhead (based on capacity of 80,000 units) Total The company has received a special order from a foreign buyer for 12,000 circuit boards. This order will not compete with existing sales. The company has sufficient excess capacity to manufacture the boards. Additional freight costs of $4 per board will be incurred. The selling price for the special order is $23 per unit. a. If the special order is accepted, how much would income increase or decrease? SHOW WORK. stowwork 4. Lawson Company sells its product for $40 per unit and has a CM ratio (contribution margin ratio) of 20%. The company's fixed expenses are $160,000 per year. The company plans to sell 16,000 units this year. a. What is the break-even point in unit sales? b. What amount of unit sales is required to earn an annual profit of $40,000
