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ACCY 202 Study Guide - Quiz Guide: Dexter Morgan, Income Statement, Total Absorption Costing

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blushbee713
5 Dec 2017
School
UM
Department
Patterson School of Accountancy
Course
ACCY 202
Professor
Barton

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Document Summary

Best co. sells two products, vests and jackets. For every vest sold, three jackets are sold (1 vest : 3 jackets sales ratio). Actual quantity of units sold as well as selling prices and cost information for both products follow: Exam 3 practice problems: calculate best"s pretax income for 2016, calculate the 2016 margin of safety as a percentage of sales for jackets, roundest to the nearest whole percentage. Elease, inc. reports the following production cost information: ,000 in total: prepare the absorption costing income statement. Exam 3 practice problems: prepare the variable costing income statement, determine the cost of ending inventory (in total) using absorption costing, determine the cost of ending inventory (in total) using variable costing. Cash interest is due to the bank at (cid:1005)% of the beginning of the month loan balance, if any. The following information relates to dexter"s business in the month of may: Sales are 3(cid:1004)% cash and (cid:1011)(cid:1004)% credit.

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Related Questions

Yurus Manufacturing Company produces two products, X and Y. Thefollowing information is presented for both products:

Product X: *Selling price per unit $36 *Variable cost per unit$28

Product Y: *Selling price per unit $24 *Variable cost per unit$12

**Total Fixed Costs: $234,000**

Answer each of the following questions and show all work: Assumethe sales mix is 3 units of X for every unit of Y: a. What is theweighted revenue per unit of composite average product? b. What isthe weighted average variable cost? c. What is the weightedcontribution margin per unit of composite average product? d. Whatis the break-even point in units of product X? e. What is thebreak-even point in units of product Y?

I'll rate do all parts

Sales Mix and Break-Even Sales

Data related to the expected sales of laptops and tablets forTech Products Inc. for the current year, which is typical of recentyears, are as follows:

Products Unit Selling Price Unit Variable Cost Sales Mix
Laptops $280 $190 40%
Tablets 410 190 60%

The estimated fixed costs for the current year are $238,560.

Required:

1. Determine the estimated units of sales ofthe overall (total) product, E, necessary to reach the break-evenpoint for the current year.
units

2. Based on the break-even sales (units) inpart (1), determine the unit sales of both laptops and tablets forthe current year.

Laptops: units
Tablets: units

3. Assume that the sales mix was 60% laptopsand 40% tablets. Determine the estimated units of sales of theoverall product necessary to reach the break-even point for thecurrent year.
units

Why is it so different?

The break-even point is in this scenario than in part (1)because the sales mix is weighted heavily toward the product withthe contribution margin per unit of product.

Sales Mix and Break-Even Sales

Data related to the expected sales of snowboards and skis for Winter Sports Inc. for the current year, which is typical of recent years, are as follows:

Products Unit Selling Price Unit Variable Cost Sales Mix
Snowboards $210 $140 20%
Skis 540 250 80%

The estimated fixed costs for the current year are $280,440.

Instructions:

1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
_________________ units

2. Based on the break-even sales (units) in part (1), determine the unit sales of both snowboards and skis for the current year.

Snowboards _________________ units
Skis _________________ units

3. Assume that the sales mix was 80% snowboards and 20% skis. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
_________________ units

4. Based upon the break-even sales (units) in part (3), determine the unit sales of snowboards and skis for the current year.

Snowboards _________________ units
Skis _________________ units

5. The overall enterprise break-even point _________________ from (1) to (3) because the sales mix is weighted more toward the product with the _________________ contribution margin per unit of product.