EXERCISES TISL Corporation, which operates in Italy, has provided the following financial data concerning its actual operations for the year. Accounting & IT personnel salaries Administrative and office supplies Administrative rent Advertising Depreciation on factory equipment Depreciation on office equipment Direct labor Indirect materials usage Insurance Machine electricity usage Manager's salaries Purchases of direct material Repairs & maintenance expenses (manufacturing Repairs & maintenance expenses (other) Sales commission Sales personnel salaries Sales revenues 36,000 25,000 43,500 8,000 99,000 24,500 223,500 31,000 2,500 62,000 80,000 245,000 3,000 500 74,000 12,000 1,250,000 The subsequent information about inventories levels has been also conveyed: Materials Work in process Pinished goods Beginning 12,300 30,720 34,000 Ending 7,500 13,600 1,500 units Beginning 12,300 65,280 68,000 Ending 7,500 28,000 1,500 units The company uses FIFO as inventory method and therefore the endig inventory is valued at the most recent production cost. During the period the company produced 10.000 units. Required: Using both absorption costing and variable costing, determine the following amounts: (a) Cost of goods manufactured (b) Cost of goods available for sale (C) Cost of goods sold (d) EBIT Please note: you are required to offer a full explanation of your answers, providing one or more "accounting statements that illustrate them. In any case you must provide the contribution format income statement for the company Assuming that all the underlying assumptions of CPV analysis held, determine what increase in quantity sold would yield an increase in EBIT of 80%. EXERCISES TISL Corporation, which operates in Italy, has provided the following financial data concerning its actual operations for the year. Accounting & IT personnel salaries Administrative and office supplies Administrative rent Advertising Depreciation on factory equipment Depreciation on office equipment Direct labor Indirect materials usage Insurance Machine electricity usage Manager's salaries Purchases of direct material Repairs & maintenance expenses (manufacturing Repairs & maintenance expenses (other) Sales commission Sales personnel salaries Sales revenues 36,000 25,000 43,500 8,000 99,000 24,500 223,500 31,000 2,500 62,000 80,000 245,000 3,000 500 74,000 12,000 1,250,000 The subsequent information about inventories levels has been also conveyed: Materials Work in process Pinished goods Beginning 12,300 30,720 34,000 Ending 7,500 13,600 1,500 units Beginning 12,300 65,280 68,000 Ending 7,500 28,000 1,500 units The company uses FIFO as inventory method and therefore the endig inventory is valued at the most recent production cost. During the period the company produced 10.000 units. Required: Using both absorption costing and variable costing, determine the following amounts: (a) Cost of goods manufactured (b) Cost of goods available for sale (C) Cost of goods sold (d) EBIT Please note: you are required to offer a full explanation of your answers, providing one or more "accounting statements that illustrate them. In any case you must provide the contribution format income statement for the company Assuming that all the underlying assumptions of CPV analysis held, determine what increase in quantity sold would yield an increase in EBIT of 80%
