Reference no: EM133093302
Questions -
Q1. Xam Company presented the following data for the 1st quarter of 2021:
Prime Costs - $560,000
Variable Factory Overhead - 80,000
Straight Line Depreciation of Plant Assets - 60,000
Other Fixed Factory Overhead - 40,000
Factory Manager's Salary - 96,000
Office Salaries - 84,000
Sales Salaries - 72,000
Sales Commission - 60,000
a. For external reporting purposes, how much is the inventoriable costs?
b. For internal reporting purposes, how much is the period costs?
Q2. By producing 4,000 units and selling 3,600 units of its only product, Rina Corporation incurred the following costs: variable factory costs: $12; variable selling and administrative cost: $3; Fixed factory overhead: $36,000; fixed selling and administrative costs: $40,000. Assuming a beginning inventory of zero, how much is the ending inventory under absorption costing?
Q3. Jomarie Corporation is a medium-sized manufacturer of lamps. During the year a new line called "Convertible" was made available to Jomarie Corporation customers. The break-even point for sales of Convertible is $200,000 with a contribution margin of 40%. Assuming that the profit for the Convertible line during the year amounted to $100,000, how much is the total sales during the year?
Q4. Gina Company sells a product for $5 per unit. The fixed expenses are $210,000 and the unit variable expenses are 60% of the selling price. How much sales would be necessary in order for Gina Company to realize a profit of 10% of sales?