QUESTION 1 Stony Electronics Corporation manufactures a portable radio designed for mounting on the wall of the bathroom. The following list represents some of the different types of costs incurred in the manufacture of these radios: 1) The plant manager's salary. 2) The cost of heating the plant. 3) The cost of heating executive offices. 4) The cost of printed circuit boards used in the radios. 5) Salaries and commissions of company salespersons. 6) Depreciation on office equipment used in the executive offices. 7) Depreciation on production equipment used in the plant. 8) Wages of janitorial personnel who clean the plant. 9) The cost of insurance on the plant building. 10) The cost of electricity to light the plant. 11) The cost of electricity to power plant equipment 12) The cost of maintaining and repairing equipment in the plant 13) The cost of printing promotional materials for trade shows. 14) The cost of solder used in assembling the radios. 15) The cost of telephone service for the executive offices. Required: Classify each of the items above as product (inventoriable) cost or period (noninventoriable) costs for the purpose of preparing external financial statements. QUESTION 2 Logan Products, a small manufacturer, has submitted the items below concerning last year's operations. The president's secretary, trying to be helpful, has alphabetized the list. QUESTION 2 Logan Products, a small manufacturer, has submitted the items below concerning last year's operations. The president's secretary, trying to be helpful, has alphabetized the list. Administrative salaries $2,400 Advertising expense $1.200 Depreciation - factory building S800 Depreciation factory equipment $1,600 Depreciation office equipment $180 Direct labour cost |$21.900 Raw materials inventory, beginning S2,100 Raw materials inventory, ending S3.200 Finished goods inventory, beginning 546,980 Finished goods inventory, ending $44.4101 General liability insurance expense S240 Indirect labour cost $11,800 Insurance on factory $1,400 Purchases on raw materials S14,600 Repairs and maintenance of factory S900 Sales salaries $2,000 Taxes on factory Travel and entertainment expense $1,410 Work-in-process inventory, beginning S1,670 Work-in-process inventory ending Si. 110 $450 Required: a.) Prepare a schedule of cost of goods manufactured in good form for the year. b.) Determine the cost of goods sold for the year. QUESTION 3 Stuart Manufacturing produces metal picture frames. The company's income statements for the last two years are presented below: Last year. This year Units sold 50.000 70,000 Sales $800,000 $1,120,000 Less: Cost of goods sold 550.000 710.000 Gross margin 250,000 410,000 Less: Operating expenses 150,000 190.000 Net income $100,000 $220,000 The company has no beginning or ending inventories. All activity in this problem is in the relevant range. Required: a. Estimate the company's total variable cost per unit, and its total fixed costs per year. (Remember that this is a manufacturing firm.) b. Compute the company's contribution margin for this year