The questions are to be submitted in 1 hour 30 min. Quality work needed.

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Question 1. 1. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just-completed year.

Sales	$950
Purchases of raw materials	$225
Direct labor	$250
Manufacturing overhead	$295
Administrative expenses	$150
Selling expenses	$140
Raw materials inventory, beginning	$30
Raw materials inventory, ending	$45
Work-in-process inventory, beginning	$20
Work-in-process inventory, ending	$55
Finished goods inventory, beginning	$100
Finished goods inventory, ending	$135

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)

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: 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? (Points : 25)

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