2019A Company 1. The following information is taken from the records of 2019A Company for July:...
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2019A Company 1. The following information is taken from the records of 2019A Company for July: Purchases Direct materials Sales Salaries and wages: Selling and administrative salaries Direct manufacturing labour (hourly) Rent-Manufacturing Property Taxes-Plant Rent - Office Advertising Amortization of manufacturing equipment (straight-line) Amortization of office equipment (straight-line) General office expenses Indirect manufacturing labour (hourly) Miscellaneous plant overhead Lease cost for salespersons' company vehicles Inventories: July 1 $4,000 Direct materials Work in Process Finished goods 45020 Revenue Variable costs July 31 $1,500 48000 $7,000 32,000 3,750 4,500 1,250 1,500 Basil 16,000 10,000 500 600 80 40 100 60 18,000 24,000 2. The company produces two products; Anise and Basil. The total revenue and total variable cost for each product broke down as follows: Product Anise 14,000 6.000 45 28 Hely Required: a. Prepare a schedule of cost of goods manufactured. (6.5 marks) b. Prepare an income statement (absorption using gross margin) for the month. (5.5 marks) c. For each of the expenses on your cost of goods manufactured statement, in a column to the right of your statement, indicate if the expense is direct(D) or indirect(1), and fixed(F) or variable(V) (1/2 mark each to a maximum of 3 marks) eg. Manufacturing Supervisor Salary 60,000 I&F d. If Anise sells for $7/unit and Basil sells for $4/unit, calculate the contribution margin per unit per product. (1.5 marks) e. Calculate the operating income if sales increase by 10%. (1.5 marks) L Calculate how many units must be sold to break-even. (2.5 marks) 9. If the income tax rate is 30%, calculate how many units must be sold to achieve net income of $12,000. (2.5 marks) h. Using the July results, calculate the margin of safety in dollars. (1 mark) L Calculate the degree of operating leverage for July. (1 mark) 2019A Company 1. The following information is taken from the records of 2019A Company for July: Purchases Direct materials Sales Salaries and wages: Selling and administrative salaries Direct manufacturing labour (hourly) Rent-Manufacturing Property Taxes-Plant Rent - Office Advertising Amortization of manufacturing equipment (straight-line) Amortization of office equipment (straight-line) General office expenses Indirect manufacturing labour (hourly) Miscellaneous plant overhead Lease cost for salespersons' company vehicles Inventories: July 1 $4,000 Direct materials Work in Process Finished goods 45020 Revenue Variable costs July 31 $1,500 48000 $7,000 32,000 3,750 4,500 1,250 1,500 Basil 16,000 10,000 500 600 80 40 100 60 18,000 24,000 2. The company produces two products; Anise and Basil. The total revenue and total variable cost for each product broke down as follows: Product Anise 14,000 6.000 45 28 Hely Required: a. Prepare a schedule of cost of goods manufactured. (6.5 marks) b. Prepare an income statement (absorption using gross margin) for the month. (5.5 marks) c. For each of the expenses on your cost of goods manufactured statement, in a column to the right of your statement, indicate if the expense is direct(D) or indirect(1), and fixed(F) or variable(V) (1/2 mark each to a maximum of 3 marks) eg. Manufacturing Supervisor Salary 60,000 I&F d. If Anise sells for $7/unit and Basil sells for $4/unit, calculate the contribution margin per unit per product. (1.5 marks) e. Calculate the operating income if sales increase by 10%. (1.5 marks) L Calculate how many units must be sold to break-even. (2.5 marks) 9. If the income tax rate is 30%, calculate how many units must be sold to achieve net income of $12,000. (2.5 marks) h. Using the July results, calculate the margin of safety in dollars. (1 mark) L Calculate the degree of operating leverage for July. (1 mark)
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Ans a c Cost of Goods Manufactured Particulars Direct material Work in progress Direct Manufacturin... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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