ACC 561 week 5 BE18-8, BE18-10, BE18-11, BE19-16, E19-17, BE 21-1, BE21-4

| June 13, 2016

Question
ACC 561 week 5 BE18-8, BE18-10, BE18-11, BE19-16, E19-17, BE 21-1, BE21-4

Brief Exercise 18-8 Meriden Company has a unit selling price of $770, variable costs per unit of $462, and fixed costs of $230,384.

Compute the break-even point in units using the mathematical equation.

Break-even point units

Brief Exercise 18-10 For Turgo Company, variable costs are 59% of sales, and fixed costs are $184,800. Management’s net

income goal is $61,241. Compute the required sales in dollars needed to achieve management’s target net income of $61,241.

Required sales $

Brief Exercise 18-11 For Kozy Company, actual sales are $1,114,000 and break-even sales are $735,240.

Compute the margin of safety in dollars and the margin of safety ratio.

Margin of safety $

Margin of safety ratio %

Brief Exercise 19-16 Montana Company produces basketballs. It incurred the following costs during the year.

Direct materials $14,975

Direct labor $25,682

Fixed manufacturing overhead $10,320

Variable manufacturing overhead $32,131

Selling costs $20,759

What are the total product costs for the company under variable costing?

Total product costs $

Exercise 19-17 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 $239,522

Fixed selling and administrative expenses $247,303

Polk Company sells the fishing lures for $25.75. During 2012, the company sold 80,000 lures and produced 94,300 lures.

(a) 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 $

(b) Prepare a variable costing income statement for 2012.

POLK COMPANY

Income Statement For the Year Ended December 31, 2012

Variable Costing

$

$

$

(c) 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 $

(d) Prepare an absorption costing income statement for 2012.

POLK COMPANY

Income Statement

For the Year Ended December 31, 2012

Absorption Costing

$
$

Brief Exercise 21-1 For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $329,800 budget; $326,900 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 $ $ $

Brief Exercise 21-4 Gundy Company expects to produce 1,206,960 units of Product XX in 2012. Monthly production is expected to range from 81,360 to 119,960 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $1.

Prepare a flexible manufacturing budget for the relevant range value using 19,300 unit increments. (List variable costs before fixed costs.)

Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now