# 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

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 selling and administrative expenses \$4.02

Fixed Costs per Year

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.)