Question
Question 1 Amberg company currently sells its product for $50 per unit. Management is contemplating a 20% increase in the selling price for the next
Question 1
Amberg company currently sells its product for $50 per unit. Management is contemplating a 20% increase in the selling price for the next year. Variable costs are currently 60% of sale revenue and are not expected to change in a dollar amount on a per-unit basis next year. Fixed expenses are $75,000 per unit
What are the break-even points in units at the anticipated selling price per unit next year?
Question 2
Selected data for Blackwell inc for the month of January 2021 are presented below
Description | Amount |
Work in process inventory | opening 16,000 |
Work in process inventory | ending 11,000 |
Raw materials inventory | opening 9,000 |
Raw materials inventory | closing 13,000 |
Customer delivery cost | 21,000 |
Deprecation on factory equipment | 32,000 |
Direct materials purchase | 32,000 |
Factory utilities cost | 16,000 |
Marketing and admin cost | 110,000 |
Factory supervisor salary | 46,000 |
Sales revenue | 487,000 |
Assembly line worker salary | 66,000 |
Sales salary cost | 135,000 |
Finished goods inventory | opening 27,000 |
Finished goods inventory | closing 37,000 |
Using the above information, develop a schedule of cost of manufacture and an income statement. Use the information to answer the following question
- What is the total direct material used from the materials of cost of goods manufactured
- What is the total direct labor from the schedule of cost of goods manufactured
- What is the total manufactured overhead from the schedule of cost of goods manufactured
- What is the total cost of goods manufactured from the schedule of cost of goods manufactured
- What is the total cost of goods sold from the income statement
- What is the total operating income from the income statement
Question 3
Assume a manufacturing company uses a perpetual inventory system and a job costing system to record their transaction. Below is an INDEPENDENT event that occurred during the period in their job order costing system
Allocated manufacturing overhead to jobs, 160% of direct labor costs of $84,796
If you were the accountant the entry to record this activity would include (choose all that apply)
- Cr wages payable
- Cr work in process inventory
- Dr work in process inventory
- Cr manufacturing overhead
- Dr manufacturing overhead
- Cr cash
- Dr wages expense
Question 4
Assume a manufacturing company uses a perpetual inventory system and a job costing system to record their transaction. Below is an INDEPENDENT event that occurred during the period in their job order costing system
Completed jobs during the period. The cost of the completed jobs were $197,200
If you were the accountant the entr to record this activity would include (choose all that apply):
- Dr manufacturing overhead
- Cr finished goods inventory
- Dr work in process inventory
- Dr cost of goods sold
- Cr work in process inventory
- Cr sales revenue
- Cr manufacturing overhead
- Dr finished goods inventory
Question 5
Wildness print shop produces and sells popular landscaping posters. The company has a contribution margin ratio of 71%, a margin of safety as 53% of sales, and an operating leverage factor of 2.35. The company has a target monthly income of $181,960. If the sales increase by 8%, what would be the expected percentage change in the company's operating income
Question 6
In order to prepare the financial statement for the period end, kendal inc, must close its manufacturing overhead account. During the period the company recorded $95,700 of actual overhead costs and $104,300 of applied overhead
What is the entry the company must make at period end in order to close out their manufacturing overhead account? Choose all that apply
- Cr work in process
- Cr manufacturing overhead
- Dr cost of goods sold
- Dr manufacturing overhead
- Dr work in process inventory
- Cr cost of goods sold
Question 7
Ponen technology sells laser pens at $18.50 each. Unit variable expenses are 60% of sales. The break-even sales in units is 2,365 and budgeted sales in units is 5,630. What is the company margin of safety in the dollar
Please help, I'm am confused. Thanks
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