More questions=More rates
8. Sumner, Inc.'s total contribution margin (CM) in the month of June was $208,000. All of Sumner's costs are mixed costs. The month of May's sales and production activity was low at 2,300 units and total mixed costs were $70,000. June was a month of high activity with total mixed costs $98,000 and sales and production units 5,500. a) Calculate Sumner's variable cost per unit using the high-low method (round to nearest (S0.00). b) Calculate Sumner's contribution margin (CM) ratio for the month of June (round to 0.00). 9. On October 1, 2019, the stamping dept. of Steelman Co. had 28,000 tons (units) in beginning Work in Process (WIP) Inventory that were 30% complete for conversion costs. During October, 112,700 tons were completed. An ending WIP Inventory count on October 31 showed 31,200 tons of steel that were 20% complete for conversion costs. Assume all direct materials costs are added at the beginning of the stamping process. Total manufacturing (DM+DL+FO) costs incurred in October were $425,000, including conversion costs $93,000. a) Calculate direct materials cost per equivalent unit in October 2019 (round to $0.00). b) Calculate conversion cost per equivalent unit in October 2019 (round to 80.00). 10. Sakhalin Company's process cost system assigns factory overhead cost based on machine hours and direct labor cost. The Milling Department uses 1,800 machine hours and the Cutting Department uses 3,000 direct labor hours at an average rate of $20 per hour during the accounting period. Sakhalin's factory overhead rates are $6 per machine hour, and 25% of direct labor cost. a) Prepare the journal entry to apply factory overhead cost to the Milling Department b) Prepare the journal entry to apply factory overhead cost to the Cutting Department. 11. Poroshenko Company collected the following production data for the past month: Units Produced Total Cost 1,710 $47,230 420 22,520 560 23,450 1,200 36,200 a) If the high-low method is used, calculate total variable cost for the month at the low level of production (round to the nearest $1). b) If the high-low method is used, calculate total fixed cost for the month (round to the nearest $I). 12. Soylent Corp.'s CEO wants a target profit (net income) of $59,000 next year. Soylent's fixed costs are $180,000 and variable costs average 65% of sales revenue. Soylent makes and sells one product with a market price of $12.00 per kilo. a) Calculate kilos (units) of product Soylent needs to break even (round to nearest kilo). b) Calculate kilos (units) of product Soylent needs to achieve the $59,000 target profit (round to nearest kilo)
