Calculate the total cost of direct materials budgeted

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Reference no: EM132077972

Questions -

Question 1 - The Gasson Company sells three products, Product A, Product B, and Product C. The total sales for the overall company were $1,000,000 during the month of June. During June, the company reported an overall contribution margin ratio of 37% and the total fixed costs for the entire company were $350,000. During June, Product A had sales of $500,000; Product B had sales of $300,000; and sales of Product C totaled $200,000. The traceable fixed costs for each product were: Product A, $120,000; Product B, $100,000; and Product C, $60,000. The variable costs of Product A were $300,000 and the variable costs of Product B were $180,000.

Calculate the common fixed costs for Gasson Company for June. Do not use decimals in your answer.

Question 2 - The Gasson Company sells three products, Product A, Product B, and Product C. The total sales for the overall company were $1,000,000 during the month of June. During June, the company reported an overall contribution margin ratio of 37% and the total fixed costs for the entire company were $350,000. During June, Product A had sales of $500,000; Product B had sales of $300,000; and sales of Product C totaled $200,000. The traceable fixed costs for each product were: Product A, $120,000; Product B, $100,000; and Product C, $60,000. The variable costs of Product A were $300,000 and the variable costs of Product B were $180,000.

Calculate the segment margin for Product A for June. Do not use decimals in your answer.

Question 3 - XYZ Company makes and sells a single product. Each finished unit requires two pounds of direct materials. The budgeted units to be produced over the next four months is as follows:

Budgeted Units to be Produced

January 18,000 units

February 19,000 units

March 16,000 units

April 25,000 units

The company wants to maintain monthly ending inventories of direct materials equal to 20% of the following month's production needs. The cost of the direct materials is $2.50 per pound.

Calculate the total cost of direct materials budgeted to be purchased in February. Do not use decimals in your answer.

Reference no: EM132077972

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