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Equivalent Units of Production The Converting Department of Soft Touch Towel and Tissue Company had 640 units in work in process at the beginning of

Equivalent Units of Production

The Converting Department of Soft Touch Towel and Tissue Company had 640 units in work in process at the beginning of the period, which were 60% complete. During the period, 13,600 units were completed and transferred to the Packing Department. There were 720 units in process at the end of the period, which were 30% complete. Direct materials are placed into the process at the beginning of production.

Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total

2.

High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

Total Costs Units Produced
January $196,360 3,750 units
February 167,040 2,080
March 259,840 5,280

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.

a. Variable cost per unit $
b. Total fixed cost

$

3.

Contribution Margin

Harry Company sells 34,000 units at $33 per unit. Variable costs are $21.12 per unit, and fixed costs are $121,200.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

a. Contribution margin ratio (Enter as a whole number.) %
b. Unit contribution margin (Round to the nearest cent.) $ per unit
c. Income from operations $

4)

Sales Mix and Break-Even Analysis

Heyden Company has fixed costs of $201,640. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:

Product Selling Price Variable Cost per Unit Contribution Margin per Unit
QQ $160 $80 $80
ZZ 100 80 20

The sales mix for Products QQ and ZZ is 85% and 15%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.

a. Product QQ units b. Product ZZ units

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