Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June): Work in Process-Mixing Department June 1 balance 32,000 Completed and transferred to Finished Goods Materials 141, 245 Direct labor 90, 500 Overhead 108,000 June 30 balance The June 1 work in process inventory consisted of 4,900 units with $17,380 in materials cost and $14,620 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 37,400 units were started into production. The June 30 work in process inventory consisted of 7,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion Required: 1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Tahitian Jay Island Novelties, Incorporated, of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Fantasy Selling price per unit $ 30 $ 125 Variable expense per unit $ 21 $ 25 Number of units sold annually 10,000 5,600 Fixed expenses total $565,500 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. 2. The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $35 per unit. If the company can sell 20,000 units of Samoan Delight without incurring any additional fixed expenses. a. Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sales of the other two products does not change b. Compute the company's revised break-even point in dollar sales. Also, compute its revised margin of safety in dollars and margin of safety percentage Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Req 28 Assuming the sales mix given above, do the following: Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. Island Novelties, Incorporated Contribution Income Statement Hawaiian Fantasy Tahitian Joy Total Amount % Amount % Amount 50 Sales Variable expenses Contribution margin $ 0 0 $ 0 0 0 0 Fixed expenses + s 0 Net operating income Reg 1B > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Reg 28 Assuming the sales mix given above, do the following: Compute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. (Do not round your intermediate calculations. Round your "Margin of safety percentage final answer to 1 decimal place (ie 0.1234 should be entered as 12.3). Round your other final answers to the nearest whole dollar.) Show less Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage %
