Reference no: EM131240339

1. The following data (in thousands of dollars) have been taken from the accounting records of Larklin Corporation for the just-completed year.
Sales $920
Purchases of raw materials $215
Direct labor $170
Manufacturing overhead $275
Administrative expenses $180
Selling expenses $140
Raw materials inventory, beginning $100
Raw materials inventory, ending $65
Work-in-process inventory, beginning $75
Work-in-process inventory, ending $35
Finished goods inventory, beginning $130
Finished goods inventory, ending $165

Prepare a Schedule of Cost of Goods Manufactured statement in the text box below.

Question 2. The Florida Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.

Percentage Completed
Units
Materials
Conversion
Work in process, June 1
160,000
65%
45%
Work in process, Jun 30
130,000
75%
65%

The department started 650,000 units into production during the month and transferred 680,000 completed units to the next department.

Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs 110, 175.

Question 3. A cement manufacturer has supplied the following data.

Tons of cement produced and sold 220,000
Sales revenue $924,000
Variable manufacturing expense $297,000
Fixed manufacturing expense $280,000
Variable selling and admin expense $165,000
Fixed selling and admin expense $82,000
Net operating income $100,000

Required: (this is the same question as the first question please apply the same answers)

Calculate the company's unit contribution margin:

Calculate the company's contribution margin ratio.

If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?

Question 4. The Hampton Company produces and sells a single product. The following data refer to the year just completed.

Selling price $450
Units in beginning inventory 0
Units produced 25,000
Units sold 22,000
Variable costs per unit:
Direct materials $150
Direct labor $75
Variable manufacturing overhead $25
Variable selling and admin $15
Fixed costs:
Fixed manufacturing overhead $275,000
Fixed selling and admin $200,000

Required: Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. $0.001 and $5,45.

Prepare an income statement for the year using absorption costing.

Prepare an income statement for the year using variable costing.