1. Prepare cost statement for the following unit.

Costs for year ended December 31 Amount

Units Sold $2000

Administrative expenses $ 28,000

Depreciation expense factory building $ 15,000

Depreciation expense factory equipment $ 10,000

Direct labor $ 45,000

Factory utilities expense $ 19,000

Finished goods inventory, December 31 $ 50,000

Finished goods inventory, January 01 $ 55,000

Indirect labor $ 20,000

Maintenance and repairs expense $ 20,000

Other expense factory $ 15,000

Raw Materials inventory, December 31 $ 70,000

Raw Materials inventory, January 01 $ 55,000

Raw Materials purchased during the year $ 130,000

Sales $ 500,000

Selling expenses $ 18,000

Work in process inventory, December 31 $ 23,000

Work in process inventory, January 01 $ 28,000

Q2. Calculate contribution, profit, PV Ratio, BEP Sales & BEP Units for this business.

Show your calculations.

Question:

Sales 20,000 Units

Selling Price $96/ Unit

Variable Cost $52.8/Unit

Fixed Cost 384,000.00