Student Name: Class: Exercise 02-32A BASIC CONCEPTS EXERCISE Part a.
Ending direct material inventory Transferred In Transferred Out Beginning direct material inventory Part b. Cost of goods manufactured Beginning work-in-process inventory Ending work-in-process inventory Total Manufacturing cost Part c. Total manufacturing cost Direct material used Manufacturing overhead Direct labor Part d. Gross margin Cost of goods sold Sales revenue
Given Data E02-32: BASIC CONCEPTS EXERCISE Direct material inventory, January 1 Direct material inventory, December 31 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 Purchases of direct materials Cost of goods manufactured during the year Total manufacturing cost Cost of goods sold Gross margin Direct labor Direct materials used Manufacturing overhead Sales revenue a. $ ? 8,200 5,400 7,600 3,800 600 32,200 108,900 ? 112,100 94,500 ? 29,200 27,600 ?
b.
c.
d.
Student Name: Class: Exercise 02-36A GIBSON CORPORATION Direct Materials Direct Labor Variable Manufacturing Overhead Variable Manufacturing Costs Variable Marketing and Administrative Cost Unit Variable Cost Fixed Manufacturing overhead: Full-absorption Cost Fixed Marketing and Administrative Cost Full Cost of Making and Selling Product
Given Data E02-36: GIBSON CORPORATION Information provided by accounting system: Sales price (per unit) Fixed costs (for the month) Marketing and administrative Manufacturing overhead Variable costs (per unit) Marketing and administrative Direct materials Manufacturing overhead Direct labor Units produced and sold (for the month)
$ $ $ $ $ $ $
300 36,000 54,000 6 90 20 55 1,800
Student Name: Class: Problem 02-44A SANTA CRUZ, INC. a. Total Prime Cost Computation
Direct Materials Prime Cost b. Total Conversion Cost Computation
Conversion Cost c. Total Manufacturing Costs Computation
Total Manufacturing Costs d. Cost of Goods Manufactured Calculation
Cost of Goods Manufactured e. Cost of Goods Sold Calculation
Cost of Goods Sold
Given Data P02-44: SANTA CRUZ, INC. Information provided by accounting records: Direct material inventory, March 1 $ Direct material inventory, March 31 Work-in-process inventory, March 1 Work-in-process inventory, March 31 Finished goods inventory, March 1 Finished goods inventory, March 31 Direct materials purchased during March Direct labor costs, March Manufacturing overhead, March
6,000 5,000 3,000 2,000 18,000 24,000 80,000 64,000 84,000
Student Name: Class: Problem 02-46A PRINCETON FABRICATION, INC. a. Computations 1. Variable Manufacturing Cost per Unit
Variable Manufacturing Cost 2. Full Cost per Unit
Full Unit Cost 3. Variable Cost per Unit
Variable Cost 4. Full Absorption Cost per Unit
Full Absorption Cost 5. Prime Cost per Unit
Prime Cost 6. Conversion Cost per Unit
Conversion Cost 7. Profit Margin per Unit
Profit Margin
8. Contribution Margin per Unit
Contribution Margin 9. Gross Margin per Unit
Gross Margin
b. If the number of units decreases from 1,200 to 800, which is within the relevant range, will the fixed manufacturing cost per unit increase, decrease, or remain the same? Explain.
Given Data P02-46: PRINCETON FABRICATION, INC. Information provided by accounting system: Sales price (per unit) $ Manufacturing costs: Fixed overhead (for the month) $ Direct labor (per unit) Direct materials (per unit) Variable overhead (per unit) Marketing and administrative costs: Fixed costs (for the month) $ Variable costs (per unit)
896 100,800 70 224 140 134,400 28
Student Name: Class: Problem 02-56A TUNES 2 GO Drive Systems Division (DSD) a. This year's income statement Revenue Operating costs: Variable Fixed (cash expenditures) Equipment depreciation Other depreciation Loss from equipment write-off Operating profit (before taxes) Baseline (status quo) Rent Equipment
Difference
Change
b. Next year's income statement Revenue Operating costs: Equipment rental Variable Fixed cash expenditures Equipment depreciation Other depreciation Operating profit
Baseline (status quo)
Rent Equipment
Difference
c. Would you rent the new equipment? Why or why not?
Given Data P02-56: TUNES 2 GO Drive Systems Division (DSD) Cost of existing automated testing equipment No salvage value Annual rental charge for new testing machine Percentage increase in DSD's annual revenue Percentage decrease in fixed cash expenditures Revenue and expense estimates without new machine: Sales revenue Variable operating costs Fixed operating costs Equipment depreciation Other depreciation $ 3,000,000
696,000 7% 6%
$ 4,800,000 600,000 2,250,000 450,000 375,000
