Reference no: EM132829025
Questions -
Q1: Direct materials balance:
Beginning inventory $72,000
Purchases 304,000
Ending inventory 12,000
Direct manufacturing labour 64,000
Manufacturing overhead 68,000
Ending work in process inventory 20,000
Beginning work in process inventory 4,000
Ending finished goods inventory 152,000
Beginning finished goods inventory 112,000
1. What is Jupiter's cost of direct materials used during the year?
a. $356,000
b. $360,000
c. $308,000
d. $372,000
e. $364,000
2. What is Jupiter's cost of goods sold?
a. $520,000
b. $440,000
c. $464,000
d. $400,000
e. $516,000
3. What is Jupiter's cost of goods manufactured?
a. $536,000
b. $496,000
c. $480,000
d. $476,000
e. $512,000
Answer the following question(s) using the information below.
Burger Bob's Boathouse sells only one product. 7,000 units were sold in a year resulting in $70,000 of sales revenue. Variable costs were $30,030 for the year, and fixed costs were $12,000.
4. Contribution margin per unit is
a. $4.29
b. $4.00
c. $6.00
d. $10.00
e. $5.71
5. Break-even point in volume is
a. 2,101.57 units.
b. 2,101.58 units.
c. 2,102 units.
d. 2,101.6 units.
e. 2,101 units.
6. The number of units required to be sold to achieve $52,350 of operating profit is
a. 11,269.35 units.
b. 11,269 units.
c. 11,270 units.
d. 11,269.4 units.
e. 2,102 units.
Q2: Julia Child Company sells baby car seats to retailers for an average of $91 each. The variable cost of each car seat is $46 and monthly fixed selling costs total $7,000. Other monthly fixed costs of the company total $8,500
Required -
7. What is the breakeven point in number of car seats?
8. What is the margin of safety, assuming sales total $48,000?
9. What is the breakeven level in car seats, assuming variable costs increase by 20%?
10. What is the breakeven level in car seats, assuming the selling price goes up by 10%, fixed selling costs decline by 10%, and other fixed costs decline by $1,000?