Name: Class: Date: ACC350, Cost Management, Fall 2019 - Final-a Units (45% complete) 10,000 Direct materials $23,000 Direct labor $37,000 Overhead $15,000 During May, 65,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during May: Direct materials $115,000 Direct labor $140,000 Overhead $55,000 By May 31, 4,000 units that were 80% complete remained in Mixing. Scott uses the weighted average method. Required: A. Calculate the equivalent units of production using the weighted average method. B. Calculate the total costs to account for. C. Calculate total cost per equivalent unit of production rounded to 2 decimal places. D. Calculate the cost of goods transferred to the molding department during May. E. Calculate the cost of May's ending work-in-process for the mixing department. 4. At a monthly sales volume of $25,000, a company incurs variable costs of $19,000 and fixed costs of $6,000. Required: Determine each of the following values: A. Variable cost ratio B. Contribution margin ratio C. Monthly break-even dollar sales volume D. Monthly margin of safety in dollars 5. Kanban Company estimated sales of 40,000 units at $6 each. Budgeted cost of goods sold per unit includes $1.20 of direct materials, six minutes of direct labor time at $15 per hour, and unit overhead cost of $1.30. Kanban pays a sales commission of 10% of sales revenue. Fixed selling and administrative expenses are budgeted at $25,000. Prepare a statement of operating income. A. Budgeted variable marketing expense is $ B. Budgeted operating income is $ Recalculate budgeted operating income assuming fixed selling and administrative expenses double and the selling price per unit increases 10%. Name: Class: Date: ACC350, Cost Management, Fall 2019 - Final-a Units (45% complete) 10,000 Direct materials $23,000 Direct labor $37,000 Overhead $15,000 During May, 65,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during May: Direct materials $115,000 Direct labor $140,000 Overhead $55,000 By May 31, 4,000 units that were 80% complete remained in Mixing. Scott uses the weighted average method. Required: A. Calculate the equivalent units of production using the weighted average method. B. Calculate the total costs to account for. C. Calculate total cost per equivalent unit of production rounded to 2 decimal places. D. Calculate the cost of goods transferred to the molding department during May. E. Calculate the cost of May's ending work-in-process for the mixing department. 4. At a monthly sales volume of $25,000, a company incurs variable costs of $19,000 and fixed costs of $6,000. Required: Determine each of the following values: A. Variable cost ratio B. Contribution margin ratio C. Monthly break-even dollar sales volume D. Monthly margin of safety in dollars 5. Kanban Company estimated sales of 40,000 units at $6 each. Budgeted cost of goods sold per unit includes $1.20 of direct materials, six minutes of direct labor time at $15 per hour, and unit overhead cost of $1.30. Kanban pays a sales commission of 10% of sales revenue. Fixed selling and administrative expenses are budgeted at $25,000. Prepare a statement of operating income. A. Budgeted variable marketing expense is $ B. Budgeted operating income is $ Recalculate budgeted operating income assuming fixed selling and administrative expenses double and the selling price per unit increases 10%
