ACC 212 homework 4

Exercise 20-2 Recording costs of materials LO P1

Prepare journal entries to record the following production activities.

Purchased $50,000 of raw materials on credit.

Used $20,000 of direct materials in production.

Used $18,500 of indirect materials.

Exercise 20-3 Recording costs of labor LO P2

Prepare journal entries to record the following production activities.

Incurred total labor cost of $79,000, which is paid in cash.

Used $56,000 of direct labor in production.

Used $23,000 of indirect labor.

Exercise 20-5 Recording cost of completed goods LO P4

Prepare journal entries to record the following activities.

Transferred completed products with a cost of $128,000 to finished goods inventory

Sold $443,000 of products on credit. Their cost is $167,000

Exercise 21-5 Predicting sales and variable costs using contribution margin LO C2

Bloom Company management predicts that it will incur fixed costs of $255,000 and earn pretax income of $427,500 in the next period. Its expected contribution margin ratio is 65%.

Compute the amount of total dollar sales.

Compute the amount of total variable costs

Exercise 21-7 Cost behavior estimation-scatter diagram and high-low LO P1

Felix & Co. reports the following information about its sales and cost of sales.

Period	Units Sold	Cost of Sales		Period	Units Sold	Cost of Sales
1.	0	$	2,560	6.	2,060	5,560
2.	460		3,160	7.	2,460	6,160
3.	860		3,760	8.	2,860	6,760
4.	1,260		4,360	9.	3,260	7,360
5.	1,660		4,960	10.	3,660	8,050

Hint: (Draw an estimated line of cost behavior using a scatter diagram offline.)

Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method. (Round cost per unit to 2 decimal places.)

Exercise 21-12 Income reporting and break-even analysis LO C2

Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The company’s annual fixed costs are $432,000.

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