Description / Instructions: Complete the following in WileyPLUS: *Brief Exercise 18-8 *Brief Exercise 18-10 *Brief Exercise 18-11 *Brief Exercise 19-16 *Exercise 19-17 *Brief Exercise 21-1 *Brief Exercise 21-4
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Question 1
Meriden Company has a unit selling price of $630, variable costs per unit of $378, and fixed costs of $200,340.
Compute the break-even point in units using the mathematical equation.
Break-even point
units
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Question 2
For Turgo Company, variable costs are 58% of sales, and fixed costs are $180,600. Management’s net income goal is $82,320.
Compute the required sales in dollars needed to achieve management’s target net income of $82,320.
Required sales
$
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Question 3
For Kozy Company, actual sales are $1,208,000 and break-even sales are $736,880.
Compute the margin of safety in dollars and the margin of safety ratio.
Margin of safety
$
Margin of safety ratio
%
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Question 4
Montana Company produces basketballs. It incurred the following costs during the year.
Direct materials
$14,384
Direct labor
$25,250
Fixed manufacturing overhead
$10,260
Variable manufacturing overhead
$31,798
Selling costs
$20,948
What are the total product costs for the company under variable costing?
Total product costs
$
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Question 5
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
$7.73
Direct labor
$2.52
Variable manufacturing overhead
$5.92
Variable selling and administrative expenses
$4.02
Fixed Costs per Year
Fixed manufacturing overhead
$241,554
Fixed selling and administrative expenses
$247,303
Polk Company sells the fishing lures for $25.75. During 2012, the company sold 80,600 lures and produced 95,100 lures.
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
$
Prepare a variable costing income statement for 2012.
POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Variable Costing
$
$
$
Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)
Manufacturing cost per unit
$
Prepare an absorption costing income statement for 2012.
POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Absorption Costing
$
$
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Question 6
For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, .
Description Instructions Complete the following in WileyPLUS .docx
1. Description / Instructions: Complete the following in
WileyPLUS: *Brief Exercise 18-8 *Brief Exercise 18-10 *Brief
Exercise 18-11 *Brief Exercise 19-16 *Exercise 19-17 *Brief
Exercise 21-1 *Brief Exercise 21-4
Top of Form
Bottom of Form
Question 1
Meriden Company has a unit selling price of $630, variable
costs per unit of $378, and fixed costs of $200,340.
Compute the break-even point in units using the mathematical
equation.
Break-even point
units
2. Top of Form
Bottom of Form
Question 2
For Turgo Company, variable costs are 58% of sales, and fixed
costs are $180,600. Management’s net income goal is $82,320.
Compute the required sales in dollars needed to achieve
management’s target net income of $82,320.
Required sales
$
3. Top of Form
Bottom of Form
Question 3
For Kozy Company, actual sales are $1,208,000 and break-even
sales are $736,880.
Compute the margin of safety in dollars and the margin of
safety ratio.
Margin of safety
$
Margin of safety ratio
4. %
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Bottom of Form
Question 4
Montana Company produces basketballs. It incurred the
following costs during the year.
Direct materials
5. $14,384
Direct labor
$25,250
Fixed manufacturing overhead
$10,260
Variable manufacturing overhead
$31,798
Selling costs
$20,948
What are the total product costs for the company under variable
costing?
Total product costs
$
6. Top of Form
Bottom of Form
Question 5
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
$7.73
Direct labor
$2.52
Variable manufacturing overhead
$5.92
Variable selling and administrative expenses
$4.02
7. Fixed Costs per Year
Fixed manufacturing overhead
$241,554
Fixed selling and administrative expenses
$247,303
Polk Company sells the fishing lures for $25.75. During 2012,
the company sold 80,600 lures and produced 95,100 lures.
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
$
8. Prepare a variable costing income statement for 2012.
POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Variable Costing
$
$
9. $
Assuming the company uses absorption costing, calculate Polk’s
manufacturing cost per unit for 2012. (Round answer to 2
decimal places, e.g.10.50.)
Manufacturing cost per unit
10. $
Prepare an absorption costing income statement for 2012.
POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Absorption Costing
$
$
11.
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Question 6
For the quarter ended March 31, 2012, Maris Company
accumulates the following sales data for its product, Garden-
Tools: $327,200 budget; $339,700 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
$
$
$
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Question 7
Gundy Company expects to produce 1,237,920 units of Product
XX in 2012. Monthly production is expected to range
from 77,800 to 121,160 units. Budgeted variable manufacturing
costs per unit are: direct materials $3, direct labor $6, and
overhead $9. Budgeted fixed manufacturing costs per unit for
depreciation are $5 and for supervision are $2.
14. Prepare a flexible manufacturing budget for the relevant range
value using 21,680 unit increments. (List variable costs before
fixed costs.)
GUNDY COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2012
$
$
$
$
$
$
18. Evaluation:
1. What are the needs of participants being addressed in the
training design?
2. How will you determine if participants are applying their
learning back on the job?
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