Accounting Questions

Brief Exercise 18-8

Meriden Company has a unit selling price of $780, variable costs per unit of $390, and fixed costs of $256,230. Compute the break-even point in units using the mathematical equation.

Break-even point

units

Brief Exercise 18-10

For Turgo Company, variable costs are 56% of sales, and fixed costs are $179,600. Management’s net income goal is $104,156. Compute the required sales in dollars needed to achieve management’s target net income of $104,156.

Required sales

$

Brief Exercise 18-11

For Kozy Company, actual sales are $1,112,000 and break-even sales are $756,160. Compute the margin of safety in dollars and the margin of safety ratio.

Margin of safety		$
Margin of safety ratio			%

Brief Exercise 19-16

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

Direct materials		$14,353
Direct labor		$25,473
Fixed manufacturing overhead		$10,220
Variable manufacturing overhead		$31,840
Selling costs		$21,333

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

Total product costs

$

Exercise 19-17 Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs. Variable Cost per Unit Direct materials $7.58 Direct labor $2.47 Variable manufacturing overhead $5.81 Variable selling and administrative expenses $3.94   Fixed Costs per Year Fixed manufacturing overhead $236,052 Fixed selling and administrative expenses $242,501 Polk Company sells the fishing lures for $25.25. During 2012, the company sold 80,500 lures and produced 94,800 lures.

(a) 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.) Manufacturing cost per unit $

Brief Exercise 21-1

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $323,600 budget; $325,200 actual. Prepare a static budget report for the quarter.

MARIS COMPANY Sales Budget Report For the Quarter Ended March 31, 2012
Product Line		Budget		Actual		Difference
Garden-Tools		$		$		$

Brief Exercise 21-4

Gundy Company expects to produce 1,241,520 units of Product XX in 2012. Monthly production is expected to range from 70,930 to 116,070 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $7, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3. Prepare a flexible manufacturing budget for the relevant range value using 22,570 unit increments.  (List variable costs before fixed costs.)

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2012
	$	$	$
	$	$	$
	$