The inventory at June 1 and costs charged to work in process-Department 60 during june are as follows:

3800 units, 3/5 completed........$60400

Direct materials..........................378000

Direct labor.................................274000

Factory overhear..........................168000

Total factory cost be accounted for $880400

During June, 32000 units were placed into production and 31,200 were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 4.25/5 completed. Inventories are costed by the first in first out method and all materials are added at the biginning of the process.

Determine the following, presenting your computations (prepare your computations using unit cost data to four decimal places, I.e $4.4444, to minimize rounding differences):

Assuming that the direct material cost per unit is the same for May and June, by how much the conversion cost per unit increase and/or decrease from May to June?

A)13.4633 increase

B)6.6596 increase

C)6.8037increase

D)None of these answers

Silver River Company sells products S and T and has made the following estimates for the coming year:

Product Unit selling price Unit variable cost Sales Mix

S $30 $24 60%

T $70 $56 40%

Fixed costs are estimated at $202,400. Determine the estimated sales in units (per product) necessary to realize an operating income of $119,600 for the coming year.

A) 8,500 Units of T & 6,500 units of S

B) 13,200 Units of S & 8,800 units of T

C)14,000 Units of S & 21,000 units of T

D) NONE OF THESE ANSWERS

E) 23,000 Units of T & 14,000 Units of S

Selected information concerning sales and production for Walker Company for fiscal year 2013 are summarized as follows:

A. Estimated sales:

Product and region Unit sales Unit Selling

(volume) (price)

Wallet:

East 287,000 $12

West 241,000 $12

Handbag:

East 156,400 $25

West 123,600 $25

B. Estimated inventories, January 1, 2013:

Leather 18,000 sq yards Wallets 88,000 units

Lining 15,000 sq yards Handbags 48,000 units

WIP $214,400 Finished goods $1,095,600

Desired inventories, December 31, 2013

Leather 20,000 sq yards Wallets 80,000 units

Lining 12,000 sq yards Handbags 60,000 units

WIP $220,000 Finished Goods $1,565,000

Direct materials in production

Wallets: Handbags:

Leather 0.30 sq yd per unit 1.25 sq yd per unit

lining 0.10 sq yd per unit 0.25 sq yd per unit

Price per square yard:

Leather $4.50

Lining $1.20

E. Direct Labor requirements:

Wallet Handbag

Cutting Department:0.10 hr. per unit Cutting Department:0.15 hr. per unit

Sewing Department:0.25hr. Per unit Sewing Department:0.40 hr per unit

Cutting Department $12 hourly rate

Sewing Department 15 hourly rate

F. Estimated costs for fiscal year 2013:

Administrative Salary expense $618,000

Indirect factory wages 732,000

Supervisor salaries in Dept of production 360,000

Power & light 306,000

Depreciation of plant and equipment 288,000

Advertising expense 360,000

Indirect material 182,800

Sales salaries expense 715,000

Rent expense for sales and marketing 34,500

Insurance and property taxes 79,200

Office Supplies expense for Sales Dept 17,500

Travel Expense for marketing Dept 115,000

Maintenance of factory 140,280

Misc Administrative expense 25,000

G. Estimated other revenue/expenses and taxes

Interest Revenue $98,000

Interest Expense $90,000

Company's income tax rate 40%

What is the estimated cost of goods sold for 2013?

A)$9,047,780

B)NONE OF THESE ANSWERS

C)$9,880,600

D)$7,095,000

E)$12,095,350

What is the estimated direct Labor cost?

A)NONE OF THESE ANSWERS

B)$3,702,000

C)$1,437,000

D)$4,851,600

What is the estimate Net income for the company for the year 2013?

A) $1,446,732

B) $4,288,220

C) $2,403,220

D) NONE OF THESE ANSWERS

What is the estimated direct material to be purchased

A)NONE OF THESE ANSWERS

B) $2,587,500

C) $2,353,500

D) $234,000