A+ Answers

1. The following data (in thousands of dollars) have been taken from the accounting records of Larklin Corporation for the just-completed year. 
Sales
$920
Purchases of raw materials
$215
Direct labor
$170
Manufacturing overhead
$275
Administrative expenses
$180
Selling expenses
$140
Raw materials inventory, beginning
$100
Raw materials inventory, ending
$65
Work-in-process inventory, beginning
$75
Work-in-process inventory, ending
$35
Finished goods inventory, beginning
$130
Finished goods inventory, ending
$165
Prepare a Schedule of Cost of Goods Manufactured statement in the text box below. (Points : 15) 

Question 2. 2. (TCO B) The Florida Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below. 
Percentage Completed
Units
Materials
Conversion
Work in process, June 1
160,000
65%
45%
Work in process, Jun 30
130,000
75%
65%
The department started 650,000 units into production during the month and transferred 680,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs. (Points : 20) 
110,175

Question 3. 3. (TCO C) A cement manufacturer has supplied the following data. 
Tons of cement produced and sold
220,000
Sales revenue
$924,000
Variable manufacturing expense
$297,000
Fixed manufacturing expense
$280,000
Variable selling and admin expense
$165,000
Fixed selling and admin expense
$82,000
Net operating income
$100,000
Required: (this is the same question as the first question please apply the same answers)
Calculate the company's unit contribution margin:
Calculate the company's contribution margin ratio. 
If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?

Question 4. 4. (TCO D) The Hampton Company produces and sells a single product. The following data refer to the year just completed. 
Selling price
$450
Units in beginning inventory
0
Units produced
25,000
Units sold
22,000
Variable costs per unit:
Direct materials
$150
Direct labor
$75
Variable manufacturing overhead
$25
Variable selling and admin
$15
Fixed costs:
Fixed manufacturing overhead
$275,000
Fixed selling and admin
$200,000
Required: 
Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. $0.001 and $5,45
Prepare an income statement for the year using absorption costing. 

Prepare an income statement for the year using variable costing. (Points : 30)