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Cost of goods manufactured for the year were $860,000. Begin…
Cost of goods manufactured for the year were $860,000. Beginning work-in-process inventory was $40,000. Ending work-in-process was $60,000. If the beginning finished goods inventory was $400,000 and the ending finished goods inventory was $990,000 what was the cost of goods sold for the year?
Read DetailsKing Enterprises, which uses the high-low method to analyze…
King Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company’s utilities cost. The company’s relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $ 8,700 800 February 8,360 720 March 8,950 810 April 9,360 920 May 9,625 950 June 9,150 900 The fixed utilities cost per month for King is:
Read DetailsCassie’s Cookies produces gourmet cookies, which sell for $1…
Cassie’s Cookies produces gourmet cookies, which sell for $16 a basket. Variable costs per basket are $6 and fixed costs are $5,000 per month. If the company expects to sell 1,500 baskets of cookies, what is the margin of safety in dollars?
Read DetailsAbbot Industries is deciding whether or not to discontinue i…
Abbot Industries is deciding whether or not to discontinue its Agave Division. The division’s contribution margin is $48,600 per year. The fixed costs charged to the division total $57,600 but $27,000 would be eliminated if the division is discontinued. If the division is eliminated, Abbot’s overall operating income would:
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