Reference no: EM131219577
Foxwood Company is a metal- and woodcutting manufacturer, selling products to the homeconstruction market. Consider the following data for 2014 (in thousands):
Sandpaper $ 2
Materials-handling costs 70
Lubricants and coolants 5
Miscellaneous indirect manufacturing labor 40
Direct manufacturing labor 300
Direct materials inventory, 1/1/2014 40
Direct materials inventory, 12/31/2014 50
Finished goods inventory, 1/1/2014 100
Finished goods inventory, 12/31/2014 150
Work-in-process inventory, 1/1/2014 10
Work-in-process inventory, 12/31/2014 14
Plant-leasing costs 54
Depreciation: plant equipment 36
Property taxes on plant equipment 4
Fire insurance on plant equipment 3
Direct materials purchased 460
Revenues 1,360
Marketing promotions 60
Marketing salaries 100
Distribution/shipping costs 70
Customer service costs 100
1. Prepare an income statement with a separate supporting schedule of costs of goods manufactured.
2. Suppose that both the direct material costs and the plant-leasing costs are for the production of 900,000 units. What is the direct material cost of each unit produced? What is the plant-leasing cost per unit? Assume that the plant-leasing cost is a fixed cost.
3. Suppose Foxwood manufactures 1,000,000 units next year. Repeat the computation in requirement 2 for direct materials and plant-leasing costs.
4. As a management consultant, explain to the company president why the unit cost for direct materials did not change in requirements 2 and 3 but the unit cost for plant-leasing costs did change.
|
Components divisions income from operations increase
: Materials used by the Truck Division of Armstrong Motors are currently purchased from outside suppliers at a cost of $245 per unit. However, the same materials are available from the Components Division. How much would the Truck Division's income fro..
|
|
Compute the company degree of operating leverage
: Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Compute the company’s degree of operating leverage. Construct a new contribution format income statement for the company ..
|
|
Companys break-even point in unit sales and in dollar sales
: Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $150 per unit. Variable expenses are $105 per stove, and fixed expenses associated with the stove total $198,000 per month. Compute the comp..
|
|
Antique buggy corporation declared
: Antique Buggy corporation has 820,000 shares of $35 par common stock outstanding. On June 8, antique buggy corporation declared a 5% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $63 per..
|
|
Separate supporting schedule of costs of goods manufactured
: oxwood Company is a metal- and woodcutting manufacturer, selling products to the homeconstruction market. Prepare an income statement with a separate supporting schedule of costs of goods manufactured. Suppose that both the direct material costs and ..
|
|
Flexible manufacturing budget for relevant range value
: Gundy Company expects to produce 1,200,000 units of Product XX in 2017. Monthly production is expected to range from 70,000 to 100,000 units. Budgeted variable manufacturing costs per unit are direct materials $3, direct labor $6, and overhead $9. Bu..
|
|
Differences in financial accounting-managerial accounting
: Discuss two basic differences between financial accounting and managerial accounting. In addition, identify the primary stakeholders concerned with financial accounting and managerial accounting.
|
|
When scope limitations are encountered during the engagement
: Define a scope limitation and distinguish between client-imposed and circumstance-imposed scope limitations. What reporting options are available to auditors when scope limitations are encountered during the engagement?
|
|
What is the total amount invested by all stockholders
: On April 20, Gallatin County Rocks Inc., a marble contractor, issued for cash 75,000 shares of $45 par common stock at $54, and on August 7, it issued for cash 20,000 shares of preferred stock, #10 par at $12. Journalize the entries for April 20 and ..
|