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1) A dairy allocates the cost of unprocessed milk...




1) A dairy allocates the cost of unprocessed milk to the production of milk, cream, butter and cheese. For the current period, unprocessed milk was purchased for $320,000, and the following quantities of product and sales revenues were produced. Product Pounds Price per Pound Milk 140,000 $1.30 Cheese 54,000 2.60 Butter 24,000 5.00 Cream 14,000 7.00 How much of the $320,000 cost should be allocated to milk? (Do not round your intermediate calculations.) 2) A retail store has three departments, 1, 2, and 3, and does general advertising that benefits all departments. Advertising expense totaled $47,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department 2 based on departmental sales. (Do not round your intermediate calculations.) Department 1 $111,000 Department 2 217,650 Department 3 141,350 3) Abbe Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,300,000; sales of $4,725,000; cost of goods sold of $2,750,000; and operating expenses of $1,572,000. Assume a target income of 8% of average invested assets. Compute residual income for the division? 4) During its most recent fiscal year, Simon Enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. Fixed costs amounted to $729,000 and pretax income was $999,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question? 5)A company has fixed costs of $87,000. Its contribution margin ratio is 29% and the product sells for $72 per unit. What is the company's break-even point in dollar sales? 6)Use the following information to determine the margin of safety in dollars (Do not round intermediate calculations): Unit sales 63,000 Units Dollar sales $630,000 Fixed costs $209,728 Variable costs $226,800 7)In Davis Corporation's most recent fiscal year, the company reported pretax earnings of $215,000. Fixed costs totaled $325,800, the unit selling price of the firm's only product was $60, and the variable costs per unit were 40% of the selling price. Based on this information, what was the firm's break-even point in units? 8)A June sales forecast projects that 6,600 units are going to be sold at a price of $11.1 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,600 units. What are total June sales are anticipated? 9)Fairway's April sales forecast projects that 7,800 units will sell at a price of $12.30 per unit. The desired ending inventory is 20% higher than the beginning inventory, which was 2,800 units. What are Budgeted purchases of units in April? 10)If budgeted beginning inventory is $8,750, budgeted ending inventory is $9,940, and budgeted cost of goods sold is $10,710, what are budgeted purchases? 11)Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget. a. Beginning cash balance on June 1, $95,200. b. Cash receipts from sales, $419,000. c. Budgeted cash disbursements for purchases, $274,000. d. Budgeted cash disbursements for salaries, $96,200. e. Other budgeted expenses, $58,200. d. Cash repayment of bank loan, $33,200. e. Budgeted depreciation expense, $35,200.


Paper#11740 | Written in 18-Jul-2015

Price : $25