Question
please help me answer these questions , i have four hours to complete. Thank you! 4)Simpson Company produces and sells a single product whose selling
please help me answer these questions , i have four hours to complete. Thank you!
4)Simpson Company produces and sells a single product whose selling price is $90.00 per unit and whose variable expense is $40.50 per unit. The company's fixed expense is $1,138,500 per month.
(a) What is the CM ratio (express your answer as a percentage to two decimal places)? (5 points)
(b) How many units must be sold to break-even for the month? (10 points)
(c) How many units do we need to sell to earn a profit of $495,000 for the month? (10 points)
5)ABC Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming department. Forming Department Month Ended July 31 Unit information Beginning work in process, July 1 --- 10,000 Started into production during July --- 21,000 Completed and transferred to Finishing department during July --- 19,000 Ending work in process, July 31 (40% complete as to direct materials and 45% complete as to conversion costs) --- 12,000 Cost information Beginning work in process as of July 1 consists of $13,000 of direct materials costs and $6,500 of conversion costs) --- $19,500 Direct materials used in July --- $34,000 Conversion costs incurred in July --- $14,850 Required: (a) Calculate the equivalent units for direct materials. (Show your work) (b) Calculate the cost per equivalent unit for direct materials. (Show your work)(Points : 25)
6)Vernon Inc. manufactures and sells one product. Sales and production information is contained below. Selling price per unit $50 Variable manufacturing costs per unit produced (DM, DL, and variable MOH) $24 Variable operating expenses per unit sold $5 Fixed manufacturing overhead (MOH) in total for the year $135,000 Fixed operating expenses in total for the year $55,000 Units produced during the year 15,000 Units sold during the year 13,000 (a) Prepare the income statement using variable costing. (10 points) (b) Prepare the income statement using absorption costing. (10 points) (c) Please explain the difference in operating income between the two methods
7)Palmer Company manufactures and sells trophies for winners of athletic events. The company normally charges $60 per trophy. The average costs for a trophy is shown below. Direct materials $22 Direct labor 12 Variable manufacturing overhead 8 Variable marketing expenses 4 Fixed manufacturing overhead16($2,000,000 fixed manufacturing overhead/125,000 trophies) Total costs$62 Palmer Company has enough idle capacity to accept a one-time only special order for 10,000 trophies at $50 per trophy. Palmer Company will not incur any variable marketing expenses for this order and no additional fixed costs. Required Should the company accept this special order? Please state your decision and provide numerical support for your decision.(Points : 25)
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