1)Longiotti Corporation produces and sells a single product. Data concerning that product appear below.
Selling price per unit
Variable expense per unit
Fixed expense per month
Required:Determine the monthly breakeven in units or dollar sales
2) Loxham Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.
Work in process, beginning:
Units in beginning work in process inventory
Percent complete for materials
Percent complete for conversion
Units started into production during the month
Units transferred to the next department during the month
Materials costs added during the month
Conversion costs added during the month
Ending work in process:
Units in ending work-in-process inventory
Percentage complete for materials
Percentage complete for conversion
Required: Calculate the equivalent units for conversion for the month in the first processing department.
3)Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year are presented below.
Units in beginning inventory
Less cost of goods sold:
Add cost of goods manufactured
Goods available for sale
Less ending inventory
Cost of goods sold
Less selling and admin. expenses
Net operating income
Variable manufacturing costs are $4 per unit. Fixed manufacturing overhead totals $18,000 for the year. The fixed manufacturing overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold.Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements.
4) Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $375,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of $50,000 at the end of 10 years. The machinery will also need a $35,000 overhaul at the end of Year 6. A $40,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $85,000 per year for each of the 10 years. Axillar’s discount rate is 16%.Required:Part A: What is the net present value of this investment opportunity?Part B: Based on your answer to (a) above, should Axillar go ahead with the new conditioning shampoo?
5)(TCO F) Matuseski Corporation is preparing its cash budget for October. The budgeted beginning cash balance is $54,000. Budgeted cash receipts total $127,000 and budgeted cash disbursements total $99,000. The desired ending cash balance is $100,000. The company can borrow up to $150,000 at any time from a local bank, with interest not due until the following month.Required: Prepare the company’s cash budget for October in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance
(TCO A) The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just-completed year.
Raw materials inventory, beginning
Raw materials inventory, ending
Purchases of raw materials
Work in process inventory, beginning
Work in process inventory, ending
Finished goods inventory, beginning
Finished goods inventory, ending
Use the above data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated?
7)Matuseski Corporation is preparing its cash budget for October. The budgeted beginning cash balance is $54,000. Budgeted cash receipts total $127,000 and budgeted cash disbursements total $99,000. The desired ending cash balance is $100,000. The company can borrow up to $150,000 at any time from a local bank, with interest not due until the following month.Required: Prepare the company’s cash budget for October in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance. (Points : 25)
(TCO F) NicSaybin Enterprises’ accounting department collects all pertinent monthly operating data. Correct Answer: Correct Answer: Selected data are presented below for the current month. From the data provided, please provide Saybin Enterprises’ management with a flexible budget analysis to see how costs were controlled.
Actual Costs Incurred
Activity level (in units)
General and administrative
(TCO H) Hanson, Inc. makes 10,000 units per year of a part called a prositron for use in one of its products. Data concerning the unit production costs of the prositron follow.Direct materials $250Direct labor 125Variable manufacturing OH 50Fixed manufacturing OH 15
An outside supplier has offered to sell Hanson, Inc. all of the prositrons it requires. If Hanson, Inc. decided to discontinue making the prositrons, 20% of the above fixed manufacturing overhead costs could be avoided.Required: Assume Hanson, Inc. has no alternative use for the facilities presently devoted to production of the prositrons. If the outside supplier offers to sell the prositrons for $425 each, should Hanson, Inc. accept the offer? Fully support your answer with appropriate calculations
(TCO B) Escatel Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. Data for the most recently completed year appear below.
Estimates made at the beginning of the year
Estimated labor hours
Estimated variable manufacturing overhead
per labor hour
Estimated total fixed manufacturing overhead
Actual labor hours for the year
Required:Compute the company’s predetermined overhead rate for the recently completed year.