Question 1. (10 Marks)
Case 1 (1 Mark) A company’s prime costs total $3,000,000 and its conversion costs total $7,000,000. If direct materials are $1,000,000 and factory overhead is $5,000,000, then what is the amount of direct labor?
Case 2 (1 Mark)The following information relates to the manufacturing operations of the McMillan Publishing Corporation for the year:
The raw materials used in manufacturing during the year totaled $118,000.
Determine the amount of Raw materials purchased during the year.
Case 3 (1 Mark)The following information is available for the year ended December 31:
Determine the amount of raw materials used in production for the year.
Case 4 (1 Mark) If beginning and ending goods in process inventories are $5,000 and $15,000, respectively, and cost of goods manufactured is $170,000, what is the total manufacturing cost for the period?
Case 5 (1 Mark) Using the information below for Talking Toys, Inc., determine the cost of goods manufactured for the year:
Case 6 (1.5 Marks) Current information for the Austin Company follows:
All raw materials used were traceable to specific batches of product.
Prepare the Austin Company’s cost of goods manufactured for the year:
Case 7 (2 Marks) Use the following data to prepare the statement of cost of goods manufactured.
Statement of Cost of Goods manufactured
Case 8 (1.5 Marks) The following information pertains to the Hewett Company
Calculate the cost of goods sold for the period:
Question 2. (5 Marks)
Case 1 (1 Mark) The GDK Company expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable costs per unit are $5, what the amount of total fixed costs?
Case 2 (1 Mark) During its most recent fiscal year, Majid Corporation sold 200,000 electric screwdrivers at a price of $16 each. Fixed costs amounted to $600,000 and pretax income was $800,000. What amount should have been reported as variable costs in the company’s contribution margin income statement for the year in question?
Case 3 (1 Mark) Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax income equal if sales are $440,000?
Case 4 (1 Mark) Hamad Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Hamad Company wishes to earn a pretax income that equals 10% of fixed costs.
How many units must be sold to achieve this target income level?
Case 5 (1 Mark) The Grand Canyon Company has total fixed costs of $110,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. The company projects an 18% increase in its sales price and a 5% increase in its variable costs. How many units must be sold to achieve this target income level of $80,000?