A B C 1 Kirby Company's budgeted sales and direct materials purchases are as follows. 2 3 4 October 5 November Budgeted Sales Budgeted D.M. Purchases $ 60,000 $ 60,000 $ 45,000 $ 70,000 $ 35,000 $ 80,000 D E F G H | 6 December 7 8 Kirby's sales are 20% cash and 80% credit. Credit sales are collected 60% in the month of sale, 30% in the month following sale, and 5% in the second month following sale. Kirby's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. 9 Instructions 10 (a) 11 (b) 12 13 Prepare a schedule of expected collections from customers for October, November and December. Prepare a schedule of expected payments for direct materials for October, November and December. Orlando Company manufactures and sells a product called Fantam. The selling price of Fantam is $25 per unit and variable costs amount to $113 per unit. Orlando Company incurs fixed costs of $6,000 each period. a. What is the contribution margin per unit of product b. What is the contribution margin ratio C. What is Orlando Company's break even point in units d. What is Orlando Company's break even point in dollars e. f. Calculate the margin of safety Orlando is considering the purchase of n new manufacturing machinery that would reduce variable costs by $1 per unit and increase fixed costs by $1,200. If the company buys the machinery, what would be the break even point in units? Herbart Company gathered the following information on power costs and factory machine usage for the last six months: Month Power Cost Factory Machine Hours 13,900 January $24,400 February $31,300 17,600 March $29,000 16,800 April $22,340 13,200 May $19,900 June $14,800 11,600 6,600 Instructions: Using the high low method, calculate the fixed and variable portions of the maintenance expense and determine the break even point in units if the units are sold for $20 per unit. 2 B Journalize the below transactions for Finn Corporation during February: 1-Feb Purchased raw materials on account, $55,000. 3-Feb Raw Materials of $7,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $1,000 was classified as indirect materials. 6-Feb Factory labor costs incurred were $36,000 of which $35,000 pertained to factory wages payable and the remaining amount pertained to taxes payable 10-Feb Time tickets indicated that $24,000 was direct labor (4000 hours @$6) and $12,000 (6000 hours @$2)was indirect labor. 15-Feb Incurred the following overhead costs during the year: Repairs $2,100, Depreciation on manufacturing machinery $2,000, Factory insurance $1,000. 22-Feb Manufacturing overhead was applied at the rate of $9 per direct labor hours worked. 28-Feb Goods costing $18,000 were completed in the factory. 28-Feb Finished goods costing $12,000 to manufacture were sold on account for $20,000 L 28-Feb Compute the balance in Manufacturing Overhead for the year, indicate whether overhead is over or under applied and prepare any necessary closing entries