Question 1 1 (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just completed year Sales $950 Purchases of raw materials $225 Direct labor $250 Manufacturing overhead $295 Administrative expenses $150 Selling expenses $140 Raw materials inventory, beginning $30 Raw materials inventory, ending $45 Work in process inventory, beginning $20 Work in process inventory, ending $55 Finished goods inventory, beginning $100 Finished goods inventory, ending $135 Prepare a Schedule of Cost of Goods Manufactured statement in the text box below (Points 15) Question 2 2 (TCO B) The Florida Company manufactures a product that goes through three processing departments Information relating to activity in the first department during June is given below Percentage Completed Units Materials Conversion Work in process, June 1 160,000 65 45 Work in process, Jun 30 130,000 75 65 The department started 650,000 units into production during the month and transferred 680,000 completed units to the next department Required Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted average method of accounting for units and costs (Points 20) Question 3 3 (TCO C) A tile manufacturer has supplied the following data Boxes of tile produced and sold 625,000 Sales revenue $2,975,000 Variable manufacturing expense $1,720,000 Fixed manufacturing expense $790,000 Variable selling and admin expense $152,000 Fixed selling and admin expense $133,000 Net operating income $180,000 Required Calculate the company's unit contribution margin Calculate the company's contribution margin ratio If the company increases its unit sales volume by 5 without increasing its fixed expenses, what would the company's net operating income be (Points 25) Question 4 4 (TCO D) Johnson Company, which has only one product, has provided the following data concerning its most recent month of operations Selling price $175 Units in beginning inventory 0 Units produced 9,500 Units sold 8,000 Units in ending Inventory 1,500 Variable costs per unit Direct materials $50 Direct labor $36 Variable manufacturing overhead $2 Variable selling and admin $10 Fixed costs Fixed manufacturing overhead $300,000 Fixed selling and admin $100,000 Required What is the unit product cost for the month under variable costing What is the unit product cost for the month under absorption costing Prepare an income statement for the month using the variable costing method Prepare an income statement for the month using the absorption costing method (Points 30)

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Question 1. 1. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just-completed

Question 1.1. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just-completed year.

Sales	$950
Purchases of raw materials	$225
Direct labor	$250
Manufacturing overhead	$295
Administrative expenses	$150
Selling expenses	$140
Raw materials inventory, beginning	$30
Raw materials inventory, ending	$45
Work-in-process inventory, beginning	$20
Work-in-process inventory, ending	$55
Finished goods inventory, beginning	$100
Finished goods inventory, ending	$135

Prepare a Schedule of Cost of Goods Manufactured statement in the text box below. (Points : 15)

Question 2.2. (TCO B) The Florida Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.

		Percentage Completed
	Units	Materials	Conversion
Work in process, June 1	160,000	65%	45%
Work in process, Jun 30	130,000	75%	65%

The department started 650,000 units into production during the month and transferred 680,000 completed units to the next department. Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs. (Points : 20)

Question 3.3. (TCO C) A tile manufacturer has supplied the following data.

Boxes of tile produced and sold	625,000
Sales revenue	$2,975,000
Variable manufacturing expense	$1,720,000
Fixed manufacturing expense	$790,000
Variable selling and admin expense	$152,000
Fixed selling and admin expense	$133,000
Net operating income	$180,000

Required: Calculate the company's unit contribution margin. Calculate the company's contribution margin ratio. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be? (Points : 25)

Question 4.4. (TCO D) Johnson Company, which has only one product, has provided the following data concerning its most recent month of operations.

Selling price	$175

Units in beginning inventory	0
Units produced	9,500
Units sold	8,000
Units in ending Inventory	1,500

Variable costs per unit:
Direct materials	$50
Direct labor	$36
Variable manufacturing overhead	$2
Variable selling and admin	$10

Fixed costs:
Fixed manufacturing overhead	$300,000
Fixed selling and admin	$100,000

Required: What is the unit product cost for the month under variable costing? What is the unit product cost for the month under absorption costing? Prepare an income statement for the month using the variable costing method. Prepare an income statement for the month using the absorption costing method. (Points : 30)