|
CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year’s operations follow: |
| Units in beginning inventory | 0 | |
| Units produced | 9,700 | |
| Units sold | 8,000 | |
| Units in ending inventory | 1,700 | |
| Variable costs per unit: | ||
| Direct materials | $ 60 | |
| Direct labor | 20 | |
| Variable manufacturing overhead | 10 | |
| Variable selling and administrative | 30 | |
|
|
|
|
| Total variable cost per unit | $ 120 | |
|
|
|
|
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 210,000 |
| Fixed selling and administrative | 430,000 | |
|
|
|
|
| Total fixed costs | $ | 640,000 |
|
|
|
|
|
|
| Required: |
| 1. |
Assume that the company uses variable costing. Compute the unit product cost for one computer desk.(Omit the “$” sign in your response.) |
| Unit product cost | $ |
| 2. |
Assume that the company uses variable costing. Prepare a contribution format income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” sign in your response.) |
| Variable Costing Income Statement | ||
| (Click to select)Fixed selling and administrativeVariable selling and administrativeNet operating income (loss)SalesContribution marginFixed manufacturing overheadVariable cost of goods sold | $ | |
| Variable expenses: | ||
| (Click to select)Fixed manufacturing overheadVariable cost of goods soldFixed selling and administrative expensesSalesNet operating income (loss)Variable selling and administrative expensesContribution margin | $ | |
| (Click to select)Contribution marginNet operating income (loss)SalesFixed selling and administrative expensesVariable cost of goods soldVariable selling and administrative expensesFixed manufacturing overhead | ||
|
|
|
|
| (Click to select)Fixed selling and administrative expensesFixed manufacturing overheadSalesVariable selling and administrative expensesVariable cost of goods soldNet operating income (loss)Contribution margin | ||
| Fixed expenses: | ||
| (Click to select)SalesNet operating income (loss)Variable selling and administrative expensesContribution marginVariable manufacturing overheadFixed selling and administrative expensesFixed manufacturing overhead | ||
| (Click to select)Contribution marginNet operating income (loss)Variable manufacturing overheadFixed manufacturing overheadFixed selling and administrative expensesSalesVariable selling and administrative expenses | ||
|
|
|
|
| (Click to select)Fixed selling and administrative expensesContribution marginFixed manufacturing overheadSalesVariable cost of goods soldNet operating income (loss)Variable selling and administrative expenses | $ | |
|
|
||
|
|
| 3. | What is the company’s break even point in terms of units sold? (Round your answer to the nearest whole number.) |
| Break even point | units |
check my workeBook Links (2)