5.0
Harrison Co. expects to sell 180,000 units of its product next year, which would generate total sales of $14,940,000. Management predicts that pretax net income for next year will be $1,230,000 and that the contribution margin per unit will be $27.
Complete the below table to calculate the next year's total expected variable costs and fixed costs.
2. Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department. 4. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Direct labor Overhead per unit Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (825 x $1, 075) 886, 875 Cost of goods sold (825 x $425) 350, 625 Gross margin 536, 250 Selling and administrative expenses 220,000 Net income 316, 250 Additional Information a. Product cost per kayak totals $425, which consists of $325 in variable production cost and $100 in fixed production cost-the latter amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced. b. The $220,000 in selling and administrative expense consists of $85,000 that is variable and $135,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Net income (loss) Sales (825 x $1, 075) $ 886, 875 Cost of goods sold (825 x $425) 350, 625 Gross margin 536, 250 Selling and administrative expenses 220,000 Net income $ 316, 250 Additional Information a. Product cost per kayak totals $425, which consists of $325 in variable production cost and $100 in fixed production cost-the latter amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced. b. The $220,000 in selling and administrative expense consists of $85,000 that is variable and $135,000 that is fixed. Required: . Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units fixed overhead per unit.Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 20,000 units; sports equipment, 81,000 units; and apparel, 49,000 units. Management believes each of these inventories is too high. As a result, a new policy dictates that ending inventory in any month should equal 29% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow. Bud Sales in Unit-.5 Horn-h April Hey Juno Footwear 15.000 26.000 30.000 35.500 Sports equipment 69.000 90.500 96.000 39,500 Apparel 41.500 37.000 32.500 23.000 Required: 1. Prepare a merchandise purchases budget [in units} for each product for each of the months of March, April. and May. FOOTWEAR Budgeted sales for next month Ratio of ending inventory to tuture sales Budgeted purchases SPORTS EQUIPMENT Budgeted sales for next month Ratio of ending inventory to tuture sales KEGGLER'S SUPPLY Merchandise Purchases Budget For March, April, and May March April May FOOTWEAR Budgeted sales for next month Ratio of ending inventory to future sales Required units of available merchandise Budgeted purchases SPORTS EQUIPMENT Budgeted sales for next month Ratio of ending inventory to future sales Required units of available merchandise Budgeted purchases APPAREL Budgeted sales for next month Ratio of ending inventory to future sales Required units of available merchandise Budgeted purchases0\\ Required information ['l'he foiiowing information applies to the questions displayed beiom} A manufactured product has the following information for June. standard Actual Direct. materials 6 lbs. 9 $8 per 115. 49,000 lbs. E $3.211 per 1h. Direct labor 2 hrs. 9 $11I per hr. 15.90!) hrs. E $11.50 per 111'. Overhead 2 hrs. 9 $11 per hr. $133,?M Units manufactured 3,100 |. Compute the direct materials price variance and the direct materials quantity variance. {Indicate the effect of each variance by selecting for favorable, unfavorable. and no variance. Round \"Cost per unit\" answers to 2 decimal places.j A0 = Actual Quantity 50 = Standard Quantity AP = Actual Price SP = Standard Price Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Actual Direct materials 6 1bs. @ $9 per 1b. 44, 400 1bs. @ $9.10 per 1b. Direct labor 2 hrs. @ $15 per hr. 14,300 hrs. @ $15.50 per hr. Overhead 2 hrs. @ $11 per hr. $ 166, 700 Units manufactured 7,300 (1) Compute the standard cost per unit. (2) Compute the total cost variance for June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the standard cost per unit. Direct materials Direct labor Overhead Total Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Actual Direct materials 6 1bs. @ $9 per 1b. 44, 400 1bs. @ $9.10 per 1b. Direct labor 2 hrs. @ $15 per hr. 14,300 hrs. @ $15.50 per hr. Overhead 2 hrs. @ $11 per hr. $166, 700 Units manufactured 7, 300 (1) Compute the standard cost per unit. (2) Compute the total cost variance for June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total cost variance for June. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Total cost variance Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct. except as noted. Sales $515,000 Cost of goods sold 440,000 Salaries 111,000 [$25,400 is indirect] Utilities 15,600 [$5,900 is indirect] Depreciation 52,200 [$11,300 is indirect] office expenses 20,000 [all indirect} 1. Prepare a departmental income statement for 2019. 2. Ir 3. Prepare a departmental contribution to overhead report for 2019. Based on these two perfonnanCe reports, should Jansen eliminate the ski department? Complete lll question Irv entail-Inn your answers In the till: below. Reql Prepare a departmental Income statement for 2-319. Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $615,000 Cost of goods sold 440,000 Salaries 111,000 ($25, 400 is indirect) Utilities 15,600 ($5,900 is indirect) Depreciation 52, 200 ($17, 800 is indirect) office expenses 20,800 (all indirect) 1. Prepare a departmental income statement for 2019. 2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should J eliminate the ski department? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department? JANSEN COMPANY Departmental Contribution to Overhead-Ski Department For Year Ended December 31, 2019 Ski Dept Contribution to overhead Should Jansen eliminate the ski department?Required information [The following information applies to the questions displayed below.] Suresh Co. expects its five departments to yield the following income for next year. Dept. M Dept . N Dept. 0 Dept . P Dept. T Total Sales $76, 000 $ 38, 000 $69, 000 $55, 000 $ 37,000 $275, 000 Expenses Avoidable 14,300 41, 800 21, 300 18,500 45, 900 141,800 Unavoidable 55, 400 18,000 5 , 100 42, 600 16, 100 137, 200 Total expenses 69,700 59,800 26,400 61, 100 62,000 279,000 Net income (loss) $ 6,300 $ (21, 800 ) $ 42, 600 $ ( 6 , 100) $ (25, 000) $ (4, 000) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. ) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)Plum Corporation began the month of May with $800,000 of current assets, a current ratio of 2.20:1, and an acid-test ratio of 1.50:1. During the month, it completed the following transactions {the company uses a perpetual inventory system]. May 2 Purchased $65,000 of merchandise inventory on credit. 0 Sold merchandise inventory that cost $60,000 for $125,000 cash. 10 Collected $31,000 cash on an account receivable. 15 Paid $25,500 cash to settle an account payable. it wrote off a $5,000 bad debt against the Allowance for Doubtful accounts account. 22 Declared a $1 per share cash dividend on its 50,000 shares of outstanding common stock. 26 Paid the dividend declared on May 22. 2? Borrowed $120,000 cash by giving the hank a 30-day, 10% note. 28 Borrowed $130,000 cash by signing a long-term secured note. 20 Used the $250,000 cash proceeds from the notes to buy new machinery. Required: Complete the table below showing Plum's {1} current ratio. {2] acidtest ratio, and {3} working capital after each transaction. [Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount. Subtrocted amount should be indicated lwith a minus sign.) Transaction Current Assets Quick Assets Current Liabilities Current Ratio Acid-Test Ratio Working Capital Beginning 800,000 $ 545,455 $ 363,636 2.20 1.50 $ 436,364 May 2 Balance May 8 Balance May 10 Balance May 15 Balance May 17 Balance May 22 Balance I May 26 Balance May 27 Balance May 28 Balance May 29 Balance
