Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1.Compare and evaluate the profit and manufactyuring performenace of Kaufmann Manufacturing Company for the first and second six of 1992. Write a memo to Ms.
1.Compare and evaluate the profit and manufactyuring performenace of Kaufmann Manufacturing Company for the first and second six of 1992. Write a memo to Ms. Kaufmann summarizing your analysis.
2.During the first half of 1992, Kaufmann Manufacturing Company just about broke even on sales of 212,000 units. In comparison, during the second half of 1992, when sales were 188,000 units, operating income was $1,619,800. Briefly explain this apparent inconsistency.
Kaufmann Manufacturing Company (A) Exhibit 1 Comparative Income Statements (thousands of dollars) Original Budget Sales Cost of goods solda Gross margin Selling and administrative expenses 193-159 for First Six Months of 1992 First Six Months Actual $18,000.00 $19,080.00 14,940.00 3,060.00 16,608.80 14,940.00 Original Budget for Second Six Months of 1992 $18,000.00 Second Six Months Actual $17,484.00 13,364.20 2,471.20 3,060.00 2,500.00 $ 560.00 2,500.00 2,500.00 4,119.80 2,500.00 $ (28.80) $ 560.00 $ 1,619.80 Operating incomeb a All manufacturing variances are closed out to cost of goods sold on a semi-annual basis. bTaxes need not be considered. Exhibit 2 Sales, Production, and Inventory Statistics First Six Months, 1992 Second Six Months, 1992 Sales forecast 200,000 units 200,000 units Actual sales 212,000 units 188,000 units Normal production 200,000 units 200,000 units Actual production 188,000 units 212,000 units Raw materials, inventory, beginning of period 0 0 Finished goods inventory, beginning of period 100,000 units at $74.70 standard cost per unit Raw materials purchased and used in production 590,000 lbs. Direct labor hours used in production 400,000 hours 76,000 units at $74.70 standard cost per unit 600,000 lbs. 425,000 hours
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started