ACC 561

Week 5 Assignment in WileyPlus

Complete the following Week 5 Assignment in WileyPLUS:

Question 2

For Turgo Company, variable costs are 63% of sales, and fixed costs are $180,300. Management’s net income goal is $60,903.

Compute the required sales in dollars needed to achieve management’s target net income of $60,903.

A. Required sales: $

Question 5

**Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.

**Polk Company sells the fishing lures for $27.00. During 2012, the company sold 80,900 lures and produced 95,200 lures.

Variable Cost per Unit

Direct materials $8.10

Direct labor $2.65

Variable manufacturing overhead $6.21

Variable selling and administrative expenses $4.21

Fixed Costs per Year

Fixed manufacturing overhead $254,184

Fixed selling and administrative expenses $259,308

Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)

A:

a) Manufacturing cost per unit $

Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)

A:

a) Manufacturing cost per unit: $

b) Prepare an absorption costing income statement for 2012.

POLK COMPANY

Income Statement

For the Year Ended December 31, 2012

Absorption Costing

Question 7

Gundy Company expects to produce 1,318,080 units of Product XX in 2012. Monthly production is expected to range from 78,450 to 124,470 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $2.

Prepare a flexible manufacturing budget for the relevant range value using 23,010 unit increments. (List variable costs before fixed costs.)

GUNDY COMPANY

Monthly Flexible Manufacturing Budget

For the Year 2012

Thanks.