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“Kaufmann Company recorded the following data for the month of January, 19X5: Inventories 1/1/X5 1/31/X5 Raw Materials 22,000 21,000 Work in process 16,000 13,000 Finished goods 20,000 25,000 Additional data: Sales revenue $200,000 Direct labor costs 30,000 Manufacturing overhead costs 70,000 Selling expenses 15,000 Administrative expenses 25,00073. Assume that the cost of goods sold for January was $120,000. The net income for January would be: a. $35,000 b. $65,000 c. $55,000 d. $40,000”,”4Net Income for January: Sales $200,000 – Cost of Goods Sold 120,000 = Gross Margin 80,000 – Selling & Adm. Expenses 40,000 Net Income $ 40
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Kaufmann Company recorded the following[…]
Read more“Kaufmann Company recorded the following data for the month of January, 19X5: Inventories 1/1/X5 1/31/X5 Raw Materials 22,000 21,000 Work in process 16,000 13,000 Finished goods 20,000 25,000 Additional data: Sales revenue $200,000 Direct labor costs 30,000 Manufacturing overhead costs 70,000 Selling expenses 15,000 Administrative expenses 25,00074. Assume that the cost of goods sold for Kaufmann Company for January was $130,000. What would be the cost of goods manufactured for the month? a. $125,000 b. $135,000 c. $130,000 d. $129,000”,”2Cost of Goods Manufactured for the month: Cost of Good Sold = Beg. Inventory Finished Goods 20,000+ Cost of Goods Manufactured ????? – Ending Inventory Finished Goods 25,000Costs of Goods Sold $130,00020,000 + ????? – 25,000 = 130,000-5,000 + ????? = 130,000????? = 135,000Cost of Goods Manufactured = 135
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Read more“Nelson Company’s activity for the first six months of 19×4 is as follows: Machine Electrical Month Hours Cost January 4,000 $3,120 February 6,000 $4,460 March 4,800 $3,500 April 3,800 $3,040 May 3,600 $2,900 June 4,200 $3,200 75. Using the high-low method, the fixed portion of the electrical cost each month would be a. $1,520 b. $440 c. $260 d. $560”,”4. The fixed portion of the electrical cost each month: Cost at the high activity level – Cost at the low activity level = Variable Cost High activity level – Low activity level4,460 – 2,900 = .65/hr6,000 – 3,600Elect. Cost = FC + .65Q4,460 = FC + .65 x 6,000FC = 4,460 – 3
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Read more“This Year Last Year Units Sold 250,000 200,000 Sales Revenue $1,250,000 $1,000,000 Less: Cost of Goods Sold 875,000 700,000 Gross Margin $375,000 $300,000 Less: Operating Expenses 222,000 210,000 Net Income $153,000 $ 90,000 76. What are the company’s total fixed operating expenses per year? a. $60,000. b. $174,000. c. $150,000. d. $162,000.”,”4The company’s total fixe operating expense per year: Cost at the high activity level – Cost at the low activity level = Variable Cost High activity level – Low activity level1,472,000 – 1,210,000 = 5.24 / unit 250,000 – 200,000 Variable Costs x Units = Variable cost element5.24 x 200,000 = 1,048,000Fixed cost element = Total cost – Variable cost element = 1,210,000 – 1,048,000= $162
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Read more“An income statement for Sam’s Bookstore for the first quarter of 19×2 is presented below: Sam’s Bookstore Income Statement For Quarter Ended March 31, 1992 Sales $900,000 Cost of Goods Sold 630,000 Gross Margin 270,000 Less Operating Expenses Selling $102,000 Administration 102,000 204,000 Net Income $ 66,000 ÍÍÍÍÍÍÍÍ On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. 77. The contribution margin for Sam’s Bookstore for the first quarter of 19×2 is: a. $180,000. b. $774,000. c. $144,000. d. $756,000.”,”377. The contribution margin for Sam’s bookstore for the first quarter of 19×2: Sales 900,000- Total VC: Cost of GS 630,000Selling 90,000 (90,000/50) = 18,000, 18,000 x 5Admin. 36,000Total Variable Costs 756,000 CM 144
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Read more“Monthly cost and revenue amounts for a textbook are as follows: Fixed Costs Variable Costs Copy editing $3,000 Printing and binding $1.60/copy Art work $1,000 Bookstore discounts $2.00/copy Typesetting $36,000 Salespersons’ commissions $ .25/copy Author’s royalties $1.00/copy Each book sells for $10 per copy. 78. The contribution margin ratio for the textbook is: a. 41.5% b. 54.0% c. 71.5% d. 51.5%”
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Read more“Sales $600,000 Variable expenses 420,000 Fixed expenses 126,000 79. The break-even point in sales dollars is: a. $420,000 b. $180,000 c. $546,000 d. $500,000”,”1The break-even point in Sales $:BE is $ = FC / CM%CM% = 180,000 / 600,000 = 30%Sales$ = 126,000/ .3 = $420
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Read more“Douglas Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. The company records show the following monthly data relating to these two products: Standard Deluxe Selling price per unit $140 $155 Variable production costs per unit 110 116 Variable selling expense per unit 15 12 Expected monthly sales in units 600 1,200 Total monthly fixed cost $15,000 80. If the expected monthly sales in units were divided equally between the two models (900 Standard and 900 Deluxe), the break-even level of sales would be: a. the same as with the expected sales mix. b. higher than with the expected sales mix. c. lower than with the expected sales mix. d. cannot be determined with the available data.”,”2The break-even point in Sales $: CM = Sales prices – VCCM from Standard 140 – 125 = 15 /unitCM from Deluxe 155 – 128 = 27 /unitThen if the sales mix would increase the standard
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Read more“Madengrad Company manufactures a single electronic product called Precisionmix. This unit is a batch-density monitoring device attached to large industrial mixing machines used in flour, rubber, petroleum, and chemical manufacturing. Precisionmix sells for $900 per unit. The following variable costs are incurred to produce each Precisionmix device. Direct labor $180 Direct materials 240 Factory overhead 105 Total variable production costs 525 Marketing costs 75 Total variable costs $600 ÍÍÍÍ Madengrad’s annual fixed costs are $6,600,000. Except for an operating loss incurred in the year of incorporation, the firm has been profitable over the last five years. 81. If Madengrad Company achieves a sales and production volume of 8,000 units, the annual before-tax income (loss) will be a. $(4,200,000) b. $1,780,000 c. $(2,520,000) d. $(420,000) e. $2,400,000”,”1The annual (before tax) income (loss):Total Cost = Variable (8,000 x 600) = $4,800,000 Fixed 6,600,000Total 11,400,000Income = Sales – Total Cost = (8,000 x 900) – 11,400,000 = 7,200,000 – 11,400,000 = (4,200
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