Accounting help

Plant manger’s salary $8,000

Factory building maintenance cost $3,000

Advertising for computers $16,000

Sales commissions $10,000

Rent on factory building $12,000

Insurance on factory building $6,000

Depreciation on factory building $1,400

Raw materials $40,000

Factory utilities $1,600

Supplies for Administrative office $400

Wages for factory workers $108,000

Depreciation on office equipment $1,000

Miscellaneous factory materials (thread, glue, etc.,) $4,000

Instruction:

Identify cost items and compute the following costs:

a. Product Costs

b. Period cost

Jay Williams Company, a manufacturer of soccer ball provide you with the following data for the month of January, 2016:

Raw materials purchased $96,400

Repairs on factory building $1,400

Property taxes paid on factory $9,600

Factory manager’s salary $29,000

Office utilities expense $8,650

Factory utilities $27,600

Depreciation on factory machinery $16,000

Factory insurance $4,600

Indirect labor $24,460

Direct labor $149,250

Sales $554,000

Sales discounts $4,200

Cash $32,000

Accounts receivable $27,000

Work in process- Inventory 1/1/2016 $19,800

Work in process- Inventory 1/31/2016 $18,600

Finished goods- Inventory 1/1/2016 $96,000

Finished goods- Inventory 1/31/2016 $95,900

Raw materials- Inventory 1/1/2016 $39,600

Raw materials- Inventory 1/31/2016 $48,000

Instruction:

a. Prepare the schedule Cost of Goods Manufactured

b. Compute the gross profit only (Hint: “Must compute cost of goods sold” to start with)

c. Prepare the “current asset” section of the balance sheet as at 1/31/2016

Sunshine computers has the following information available for December 2016:

Unit selling price of laptop $400

Unit variable costs $270

Total fixed costs $104,000

Units sold 1,240

Instructions:

a. Prepare a Cost Volume Profit (CVP) schedule that shows the Net income

b. Compute Sunshine break-even point sales units

c. Compute Sunshine break-even sales dollar

Question #4

The management of Hardwood Flooring has collected some data showing the monthly expense to better understand its maintenance cost behavior.

Month Equipment hours Total Cost

January 600 $4,800

February 800 $6,000

March 1,200 $7,200

April 1,580 $9,000

May 1,000 $6,400

June 1,600 $9,800

Instructions:

a. Using the high-low method, determine the variable cost per unit

b. Using the high-low method, determine the fixed cost per unit

Question #5

Solar Energy Company manufactures solar panel for energy efficient homes. The company wanted to maintain inventory at 30% of the following month’s expected sales unit. At the beginning of the year the company had 20,000 units on hand, based on the following projected sales for each quarter:

First Quarter 50,000

Second Quarter 62,500

Third Quarter 45,000

Fourth Quarter 55,000

Instructions:

Prepare a schedule of production budget for first quarter through third quarter

Energy electrical Company anticipate that its 2016 budgeted sales as follows:

January $200,000

February $220,000

March $270,000

Sales are 40% cash and 60% credit (accounts receivable). The company expect 10% cash collection in the month of sale, 50% in the month following sale, and 36% in the second month following sale and 4% are uncollectible.

Instruction:

a. Prepare schedule of cash collections for each month

b. What is the total cash collected for all three months?

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