ACC 561 Wk 5 Wiley Individual

Meriden Company has a unit selling price of $630, variable costs per unit of $378, and fixed costs of $200,340. Compute the break-even point in units using the mathematical equation.

For Turgo Company, variable costs are 58% of sales, and fixed costs are $180,600. Management’s net income goal is $82,320. Compute the required sales in dollars needed to achieve management’s target net income of $82,320.

For Kozy Company, actual sales are $1,208,000 and break-even sales are $736,880. Compute the margin of safety in dollars and the margin of safety ratio.

Montana Company produces basketballs. It incurred the following costs during the year.

What are the total product costs for the company under variable costing?

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 $25.75. During 2012, the company sold 80,600 lures and produced 95,100 lures.

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.)

Prepare a variable costing income statement for 2012.

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.)

Prepare an absorption costing income statement for 2012.

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $327,200 budget; $339,700 actual. Prepare a static budget report for the quarter.

Gundy Company expects to produce 1,237,920 units of Product XX in 2012. Monthly production is expected to range from 77,800 to 121,160 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $6, and overhead $9. 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 21,680 unit increments. (List variable costs before fixed costs.)