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ACC 406 Study Guide - Final Guide: Unlimited Company, Gross Margin, Bachelor Of Laws

1409 views6 pages
azurelouse708
16 Apr 2016
School
Ryerson University
Department
Accounting
Course
ACC 406
Professor
Anthony Chan

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Document Summary

Acc406, final exam review questions and partial solutions, w2016: 1 a. Abc produces a product with the following per unit costs. Last year, arche produced and sold 3,000 units at a sales price of each. D. total cost of goods sold for last year operating income for last year total gross margin for last year prime cost per unit. The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory. Data for the past four months were collected. Ruff sells only one product at a regular price of . 50 per unit. Variable expenses are 60% of sales, and fixed expenses are ,000. Management has decided to decrease the selling price to . 00 in hopes of increasing its volume of sales. How many sales (in dollars) were required to break even at the old price of. Mcbee company expects to produce and sell 1000 units next month.

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Related Questions

The Butcher Company manufactures microwave ovens. Last year, theper unit product cost was $56, the per-unit prime cost was $34, andthe per unit conversion cost was $42. Cost of Goods Sold for theyear was 560,000 and the sale peice per unit was $100. In addition,direct labor costs of $200,000 and selling and administrativeexpenses of 240,000 were incurred.

A. Calculate how many units were sold last year

B. Compute the cost od direct materials used

C. Compute the cost of overhead

D. Compute the Gross Margin for the year

E. Calculate operating income

Jay Levitt Company budgeted the following cost standards for thecurrent year:

Direct materials (2 kg of plastic at $6 per kilogram) $12.00
Direct labour (2 hours at $11 per hour) 22.00
Variable manufacturing overhead 10.50
Fixed manufacturing overhead 6.35
Total standard cost per unit $50.85


Actual costs for producing 2,700 units were as follows:

Direct materials used 5,790 kg
Direct materials purchased (6,650 kilograms) $27,930
Direct labour (6,900 hours) $64,860
Variable manufacturing costs $32,900
Fixed manufacturing costs $17,500

a. Calculate the material price variance for materialspurchased.

b.Calculate the material efficiency variance.

c.Calculate the labour price variance.

d.Calculate the labour efficiency variance.

EXERCISE 6-13 Inferring Costing Method; Unit Product Cost [L06-1] Sierra Company incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials. Direct labor ....... Variable manufacturing overhead ........ Variable selling and administrative expenses ....... Fixed costs per year: Fixed manufacturing overhead ................... Fixed selling and administrative expenses .......... 26% $150,000 $400,000 During the last year, 25,000 units were produced and 22,000 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $72,000 for the 3,000 unsold units. Required: 1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer. 2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders. a. Is the $72,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes? Explain. b. At what dollar amount should the 3,000 units be carried in the inventory for external reporting purposes?