Reference no: EM131580240
QUESTION 1 - Bateman Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price
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$117
|
Units in beginning inventory
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0
|
Units produced
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4,700
|
Units sold
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4,400
|
Units in ending inventory
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300
|
Variable costs per unit:
|
|
Direct materials
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$36
|
Direct labor
|
$38
|
Variable manufacturing overhead
|
$4
|
Variable selling and administrative
|
$11
|
Fixed costs:
|
|
Fixed manufacturing overhead
|
$89,300
|
Fixed selling and administrative
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$26,400
|
Required: What is the unit product cost for the month under variable costing?
QUESTION 2 - At an activity level of 8,800 units, Pember Corporation's total variable cost is $146,520 and its total fixed cost is $219,296.
Required: For the activity level of 8,900 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range.
QUESTION 3 - Marano Corporation produces and sells a single product. In October, the company sold 6,200 units. Its total sales were $223,200, its total variable expenses were $105,400, and its total fixed expenses were $100,400.
Required: a. Construct the company's contribution format income statement for October.
b. Redo the company's contribution format income statement assuming that the company sells 6,400 units.
QUESTION 4 - Mat Corporation's actual manufacturing overhead cost for the month ended March 31 was $78,000. The company's predetermined overhead rate was 50% of direct labor cost. Other information pertaining to Mat Corporation's inventories and production for the month of March is as follows:
Beginning inventories, March 1:
|
|
Work in process
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$40,000
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Finished goods
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$102,000
|
Direct materials cost
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$104,000
|
Direct labor cost
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$160,000
|
Ending inventories, March 31:
|
|
Work in process
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$36,000
|
Finished goods
|
$105,000
|
Required:
a. Determine the underapplied or overapplied overhead for the month.
b. Determine the Cost of Goods Manufactured for the month.
QUESTION 5 - Sproull Inc., which produces a single product, has provided the following data for its most recent month of operation:
Number of units produced
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2,000
|
Variable costs per unit:
|
|
Direct materials
|
$21
|
Direct labor
|
$75
|
Variable manufacturing overhead
|
$7
|
Variable selling and administrative expenses
|
$6
|
Fixed costs:
|
|
Fixed manufacturing overhead
|
$116,000
|
Fixed selling and administrative expenses
|
$40,000
|
The company had no beginning or ending inventories.
Required: a. Compute the unit product cost under absorption costing.
b. Compute the unit product cost under variable costing.
QUESTION 6 - Data for March concerning Mauger Corporation's two major business segments-Fibers and Feedstocks-appear below:
Sales revenues, Fibers
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$560,000
|
Sales revenues, Feedstocks
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$810,000
|
Variable expenses, Fibers
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$235,000
|
Variable expenses, Feedstocks
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$348,000
|
Traceable fixed expenses, Fibers
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$90,000
|
Traceable fixed expenses, Feedstocks
|
$113,000
|
Common fixed expenses totaled $461,000 and were allocated as follows: $249,000 to the Fibers business segment and $212,000 to the Feedstocks business segment.
Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.