1. Cherokee Inc. is a merchandiser that provided the following information:

AmountNumber of units sold12,000

Selling price per unit$17

Variable selling expense per unit$1

Variable administrative expense per unit$3

Total fixed selling expense$22,000

Total fixed administrative expense$15,000

Beginning merchandise inventory$9,000

Ending merchandise inventory$23,000

Merchandise purchases$88,000

Required:

1. Prepare traditional income statement.

2. Prepare contribution format income statement.

2.Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows:

Direct materials$8.30

Direct labor$5.30

Variable manufacturing overhead$2.80

Fixed manufacturing overhead$6.30

Fixed selling expense$4.80

Fixed administrative expense$3.80

Sales commissions$2.30

Variable administrative expense$1.80

Required:

1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make 25,250 units?

b. What is the total indirect manufacturing cost incurred to make 25,250 units?

2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 units.

a. How much total manufacturing cost is directly traceable to the Manufacturing Department?

b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?

3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent$95,950 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives' compensation.

a. When the company sells 25,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

3.Kubin Company's relevant range of production is 14,000 to 20,500 units. When it produces and sells 17,250 units, its average costs per unit are as follows:

Average Cost per UnitDirect materials$7.50Direct labor$4.50Variable manufacturing overhead$2.00Fixed manufacturing overhead$5.50Fixed selling expense$4.00Fixed administrative expense$3.00Sales commissions$1.50Variable administrative expense$1.00

Required:

1. For financial accounting purposes, what is the total amount of product costs incurred to make 17,250 units?

2. For financial accounting purposes, what is the total amount of period costs incurred to sell 17,250 units?

3. For financial accounting purposes, what is the total amount of product costs incurred to make 20,500 units?

4. For financial accounting purposes, what is the total amount of period costs incurred to sell 14,000 units?

(For all requirements, do not round intermediate calculations.)

4.Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients.

Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 75,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $712,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $731,500 and its actual total direct labor was 80,650 hours.

Required:

1.Compute the predetermined overhead rate.

2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job:

Direct materials$39,600

Direct labor cost$28,200

Direct labor hours worked310

Compute the total job cost for the Xavier Company engagement.