A. The Sunsoria Company employs a job-order pricing method and uses a predetermined overhead rate to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A. The Sunsoria Company employs a job-order pricing method and uses a predetermined overhead rate to apply manufacturing overhead to Work in Process inventory. In the current month, the business had no beginning or ending inventories. The following was among the transactions made by the company during the month: Account Direct materials issued to production Indirect materials issued to production Direct labor cost incurred Manufacturing overhead cost incurred Manufacturing overhead cost applied Amount in US $ 1,100,000 75,000 950,000 2,500,000 1,507,000 REQUIRED: i. ii. Determine the cost of goods manufactured? Compute the amount of cost of goods sold? (5 Marks) (5 Marks) B. AXA Company reported the following information during the month of September as follows: Account Sales Amount in US $ 4,000,000 70% of the sales Variable Expenses Fixed Expenses No of units produced & sold last month 18% of the sales 80,000 unit The company has no beginning or ending inventories. REQUIRED: i. Calculate the company's total contribution margin and contribution margin per unit. (5 Marks) ii. If the company intends to achieve a desired target profit of $600,000, How many units should be sold in this case? (3 Marks) iii. Refer to original information in the case, Calculate the company's break-even point in sales dollars? (2 Marks) iv. Compute the company's margin of safety in dollars. (3 Marks) V. Is the company's degree of operating leverage good enough? give your reason? A. The Sunsoria Company employs a job-order pricing method and uses a predetermined overhead rate to apply manufacturing overhead to Work in Process inventory. In the current month, the business had no beginning or ending inventories. The following was among the transactions made by the company during the month: Account Direct materials issued to production Indirect materials issued to production Direct labor cost incurred Manufacturing overhead cost incurred Manufacturing overhead cost applied Amount in US $ 1,100,000 75,000 950,000 2,500,000 1,507,000 REQUIRED: i. ii. Determine the cost of goods manufactured? Compute the amount of cost of goods sold? (5 Marks) (5 Marks) B. AXA Company reported the following information during the month of September as follows: Account Sales Amount in US $ 4,000,000 70% of the sales Variable Expenses Fixed Expenses No of units produced & sold last month 18% of the sales 80,000 unit The company has no beginning or ending inventories. REQUIRED: i. Calculate the company's total contribution margin and contribution margin per unit. (5 Marks) ii. If the company intends to achieve a desired target profit of $600,000, How many units should be sold in this case? (3 Marks) iii. Refer to original information in the case, Calculate the company's break-even point in sales dollars? (2 Marks) iv. Compute the company's margin of safety in dollars. (3 Marks) V. Is the company's degree of operating leverage good enough? give your reason?
Expert Answer:
Answer rating: 100% (QA)
Answer A i To determine the cost of goods manufactured we need to calculate the total manufacturing costs incurred during the month Total Manufacturin... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
0 Journal Entries and Ledger Accounts Covering Cost Accounting Cycle. During November, these transactions took place in the Sanger Manufacturing Company: (a) Materials purchased on account, $35,600....
-
LLJ Satellites: Variance Analysis and Budgeting Jack Childs is nervous about his company's future performance. The Childs family own 40% of the shares of LLJ Satellites, and generally has control...
-
The specific activity of a preparation consisting of radioactive Co58 as and non-radioactive Co59 ao is equal to 2.2.1012 dis /(s g). The half-life of Co58 as is 71.3 days. Find the ratio of the mass...
-
A piece of hot metal should be cooled rapidly (quenched) to 25C, which requires removal of 1000 kJ from the metal. The cold space that absorbs the energy could be one of three possibilities: (1)...
-
ChemLabs uses raw materials I and II to produce two domestic cleaning solutions, A and B. The daily availabilities of raw materials I and II are 150 and 145 units, respectively. One unit of solution...
-
What are the levirate and sororate?
-
Stiever Company estimates that variable costs will be 60% of sales, and fixed costs will total $800,000. The selling price of the product is $4. Instructions (a) Prepare a CVP graph, assuming maximum...
-
d The function, p(d)=1+ gives the pressure, in atmospheres (atm), at a depth d in the sea (d 33 is in feet). Note that p(0)=1 atm, p(33)=2, and so on. Find the pressure at 60 feet. The pressure at 60...
-
The figure shows a vertical cross-section through the center of an enclosed barbecue system. The pile of charcoal (T1 = 800C) is shaped as a disk of diameter D = 0.5 m. The thin-walled metallic...
-
Explain why US portfolios do not have a large enough international diversification.
-
We discussed risk aversion as being descriptive of investor behavior. Can Do you think of any real-world behavior that you might consider to be evidence of the existence of risk preferrers?
-
If two countries had identical term structures of interest rates, what is the expected future exchange rate change between the two currencies?
-
Trade secrets do not have to be novel, be non-obvious, or have utility. If that is the case, then what is the economic advantage to a trade secret?
-
Assume that the cost of a particular basket of goods is equal to $108 in the United States and 14,000 in Japan. a. What should the U/$ exchange rate be according to absolute purchasing power parity?...
-
Data were gathered from a simple random sample of cities. The variables are Violent Crime? (Crimes per? 100,000 population), Police Officer Wage? (Mean $/hr), and Graduation Rate? (%). Use the...
-
In the busy port of Chennai, India, the number of containers loaded onto ships during a 15-week period is as follows: 1. Develop a linear trend equation to forecast container loadings. 2. Using the...
-
Following is a residual plot produced by MINITAB. Was it appropriate to compute the least-squares regression line? Explain. Residual -2 -3 1 2 3 5.0 5.5 09 6.0 Residuals Versus x 6.5 X 7.0 7.5 8.0
-
Following is a residual plot produced by MINITAB. Was it appropriate to compute the least-squares regression line? Explain. 50 50 Residuals Versus x 40 40 30 20 20 Residual 10 10 0 -10 -20 20 + -3 -2...
-
The following table presents the ages of the last 10 U.S. presidents and their wives on the first day of their presidencies. a. Compute the least-squares regression line for predicting the presidents...
Study smarter with the SolutionInn App