E5-16 P5-1A E6-4 P6-2A - Week 3 assignment - finance
(b) Show the presentation of the ending inventories on the June 30, 2008, balance sheet.
Classify manufacturing costs into different categories and compute the unit cost. (SO 3,4)
3. Straight-line depreciation on factory building.
4. Screws used in the production of furniture.
5. Sales staff salaries.
6. Sales commissions.
7. Property taxes.
8. Insurance on buildings.
9. Hourly wages of furniture craftsmen.
10. Salaries of factory supervisors.
11. Utilities expense.
12. Telephone bill.
(b) Compute the break-even point in (1) units and (2) dollars.
(c) Compute the contribution margin ratio and the margin of safety ratio. (Round to full percents.)
(d) Determine the sales dollars required to earn net income of $238,000.
(b) (1) 2,400,000 units(c) CM ratio # 34%
File name: week-3assing.xls File type: application/vnd.ms-excel Price: $15
Prepare a cost of goods manufactured schedule, and
present the ending inventories of the balance sheet. (SO
6, 7)
E5-16 An analysis of the accounts of
Chamberlin Manufacturing reveals the following manufacturing cost data for the
month ended June 30, 2008.
|
Inventories
|
Beginning
|
Ending
|
|
Raw
materials
|
$9,000
|
$13,100
|
|
Work in
process
|
5,000
|
7,000
|
|
Finished
goods
|
9,000
|
6,000
|
Costs incurred: Raw materials
purchases $54,000, direct labor $57,000, manufacturing overhead $19,900. The
specific overhead costs were: indirect labor $5,500, factory insurance $4,000,
machinery depreciation $4,000, machinery repairs $1,800, factory utilities
$3,100, miscellaneous factory costs $1,500. Assume that all raw materials used
were direct materials.
Instructions
(a)
Prepare the cost of goods manufactured schedule for the month ended June 30,
2008. (b) Show the presentation of the ending inventories on the June 30, 2008, balance sheet.
Classify manufacturing costs into different categories and compute the unit cost. (SO 3,4)
P5-1A
Bjerg Company specializes in manufacturing a unique model of
bicycle helmet. The model is well accepted by consumers, and the company has
enough orders to keep the factory production at 10,000 helmets per month (80%
of its full capacity). Bjerg’s monthly manufacturing cost and other expense
data are as follows.
|
Rent on
factory equipment
|
$ 7,000
|
|
Insurance
on factory building
|
1,500
|
|
Raw
materials (plastics, polystyrene, etc.)
|
75,000
|
|
Utility
costs for factory
|
900
|
|
Supplies
for general office
|
300
|
|
Wages
for assembly line workers
|
43,000
|
|
Depreciation
on office equipment
|
800
|
|
Miscellaneous
materials (glue, thread, etc.)
|
1,100
|
|
Factory
manager’s salary
|
5,700
|
|
Property
taxes on factory building
|
400
|
|
Advertising
for helmets
|
14,000
|
|
Sales
commissions
|
7,000
|
|
Depreciation
on factory building
|
1,500
|
Marginal
check figures for parts of some problems, in most chapters, provide key numbers
to confirm that you are on the right track in your computations.DM $75,000DL $43,000MO $18,100PC $22,100
E6-4
Black Brothers Furniture Corporation incurred the following
costs.
Classify
variable, fixed, and mixed costs. (SO 1,3)
1.
Wood used in the production of furniture.
2.
Fuel used in delivery trucks. 3. Straight-line depreciation on factory building.
4. Screws used in the production of furniture.
5. Sales staff salaries.
6. Sales commissions.
7. Property taxes.
8. Insurance on buildings.
9. Hourly wages of furniture craftsmen.
10. Salaries of factory supervisors.
11. Utilities expense.
12. Telephone bill.
Instructions
Identify the costs above as
variable, fixed, or mixed.
P6-2A
Utech Company bottles and distributes Livit, a diet soft
drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who
charge customers 75 cents per bottle. For the year 2008, management estimates
the following revenues and costs.
Prepare a
CVP income statement, compute break-even point, contribution margin ratio,
margin of safety ratio, and sales for target net income. (SO 5,6,7,8)
|
Net
sales
|
$1,800,000
|
|
Direct
materials
|
430,000
|
|
Direct
labor
|
352,000
|
|
Manufacturing
overhead—variable
|
316,000
|
|
Manufacturing
overhead—fixed
|
283,000
|
|
Selling
expenses—variable
|
$70,000
|
|
Selling
expenses—fixed
|
65,000
|
|
Administrative
expenses—variable
|
20,000
|
|
Administrative
expenses—fixed
|
60,000
|
Instructions
(a)
Prepare a CVP income statement for 2008 based on management’s estimates. (b) Compute the break-even point in (1) units and (2) dollars.
(c) Compute the contribution margin ratio and the margin of safety ratio. (Round to full percents.)
(d) Determine the sales dollars required to earn net income of $238,000.
(b) (1) 2,400,000 units(c) CM ratio # 34%
SOLUTION PREVIEW
| EXERCISE 5-16 | ||||
| (a) | ||||
CHAMBERLIN
MANUFACTURING
| ||||
Cost of Goods
Manufactured Schedule
|
||||
| Work in process inventory, June 1 | $5,000 | |||
| Direct Materials | ||||
| Raw materials inventory, June 1 | $9,000 | |||
| Raw materials purchases | 54,000 | |||
| Total raw materials available for use | 63,000 | |||
| Less: Raw materials inventory, June 30 | 13,100 | |||
| Direct materials used | 49,900 | |||
File name: week-3assing.xls File type: application/vnd.ms-excel Price: $15
