Managerial Accounting

BA 101B Exam #1

#1 JackJoe Corporation provided the following list of cost data related to its manufacturing operations for the month of July 20X5. All raw materials are direct materials.

Beginning raw materials inventory A

Raw materials purchased (net) ( 2,000,000)

Ending raw materials inventory ( 750,000)

Direct labor costs ( 400,000)

Factory rent (fixed) ( 125,000)

Indirect labor (fixed) ( 95,000)

Factory utilities and maintenance (fixed) ( 450,000)

Factory depreciation (fixed) ( 56,000)

Beginning work in process A

Ending work in process ( 787,000)

SG&A sales commissions variable ( 400,000)

SG&A fixed ( 2,500,000)

Beginning Finished goods inventory ( 3,000,000)

Ending Finished goods inventory must be

calculated

(a) Select a variable "A." must be an odd number between $113,001 and $113,999

(b) Arrange the cost data into a statement of cost of goods manufactured. (15 points)

(c) If JackJoe sold 10,000 units for $10,000,000 and cost of goods sold for the month was $4,000,000, what was the ending balance in finished goods inventory for the month? (5 points)

(d) Write the journal entries to (1) purchase the raw materials, (2) transfer raw materials to W-I-P, (3) transfer goods manufactured to finished goods and (4) reduce inventory for goods sold. (10 points)

(e) Prepare a multi-step income statement (10 points)

(f) Compute breakeven in units and sales dollars assuming Variable Costs are $300 per unit (5 points)

(g) Compute the contribution margin on a per unit basis (5 points)