Birch Manufacturers has provided the following information regarding the two products that it sells:

	Jet Boats	Ski Boats
Sales price per unit	$8,000	$20,000
Variable cost per unit	$6,000	$14,000

Annual fixed costs are

$300,000.

How many units of each boat must be sold in order for Birch to break even, assuming that Birch sells five jet boats for every two ski boats sold? (Round any intermediate calculations to two decimal places, and your final answer to the nearest unit.)

The Refining Department of SweetBeet, Inc. had

82,000

tons of sugar to account for in July. Of the

82,000

tons,

47,000

tons were completed and transferred to the Boiling Department, and the remaining

35,000

tons were

60%

complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The

weightedaverage

method is used. Calculate the total equivalent units of production for direct materials.

Question content area bottom

Part 1

A.

68,000

units

B.

47,000

units

C.

21,000

units

D.

82,000

units

Caltran, Inc. completed manufacturing Job 445. It included

$400

of direct materials cost,

$1,240

of direct labor cost, and

$520

of allocated manufacturing overhead. Which of the following is the correct journal entry needed to record the completed job?

Question content area bottom

Part 1

A.

WorkinProcess Inventory	2,160
Finished Goods Inventory		2,160

B.

Finished Goods Inventory	2,160
Materials Inventory		2,160

C.

WorkinProcess Inventory	1,640
Cost of Goods Sold		1,640

D.

Finished Goods Inventory	2,160
WorkinProcess Inventory		2,160

Requirement 1. For a manufacturing company, identify the following as either a product cost or a period cost:

	a.	Depreciation on plant equipment
	b.	Depreciation on salespersons' automobiles
	c.	Insurance on plant building
	d.	Marketing manager's salary

Part 2

	e.	Direct materials used
	f.	Manufacturing overhead
	g.	Electricity bill for human resources office
	h.	Production employee wages

Part 3

Requirement 2. Show how to compute cost of goods manufactured. Use the following amounts: direct materials used,

$28,000;

direct labor,

$11,000;

manufacturing overhead,

$12,000;

beginning Work-in-Process Inventory,

$10,000;

and ending Work-in-Process Inventory,

$1,000.

Cost of Goods Manufactured
Total Manufacturing Costs Incurred during Period
Total Manufacturing Costs to Account For
Cost of Goods Manufactured

Part 4

Requirement 3. Using the results from Requirement 2, calculate the cost per unit for goods manufactured assuming

1,200

units were manufactured.

			=	Unit product cost
			=

Part 5

Requirement 4. Beginning Finished Goods Inventory had

175

units that had a unit cost of

$45

each. Ending Finished Goods Inventory has

200

units left. Using the results from Requirement 3, calculate cost of goods sold assuming FIFO inventory costing is used.

+
=
-
=	Cost of Goods Sold

1.

For a manufacturing company, identify the following as either a product cost or a period cost:

a.	Depreciation on plant equipment
b.	Depreciation on salespersons' automobiles
c.	Insurance on plant building
d.	Marketing manager's salary
e.	Direct materials used
f.	Manufacturing overhead
g.	Electricity bill for human resources office
h.	Production employee wages

2.

Show how to compute cost of goods manufactured. Use the following amounts: direct materials used,

$28,000;

direct labor,

$11,000;

manufacturing overhead,

$12,000;

beginning Work-in-Process Inventory,

$10,000;

and ending Work-in-Process Inventory,

$1,000.

3.

Using the results from Requirement 2, calculate the cost per unit for goods manufactured assuming

1,200

units were manufactured.

4.

Beginning Finished Goods Inventory had

175

units that had a unit cost of

$45

each. Ending Finished Goods Inventory has

200

units left. Using the results from Requirement 3, calculate cost of goods sold assuming FIFO inventory costing is used.