Homeyer Corporation has provided the following data for its…
Homeyer Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 71 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 6 Variable manufacturing overhead $ 3 Fixed manufacturing overhead per year $ 264,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 74,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 11,000 12,000 Units sold during the year 8,000 14,000 Units in ending inventory 3,000 1,000 The net operating income (loss) under absorption costing in Year 1 is closest to:
Read DetailsJamestown Partners makes one product and it provided the fol…
Jamestown Partners makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The budgeted selling price per unit is $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit. Regarding credit sales, 20% are collected in the month of the sale and 80% in the following month. The ending finished goods inventory equals 20% of the following month’s sales. The ending raw materials inventory equals 30% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.00 per pound. Regarding raw materials purchases, 30% are paid for in the month of purchase and 70% in the following month. The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours. The variable selling and administrative expense per unit sold is $3.40. The fixed selling and administrative expense per month are $80,000. The budgeted sales for May are closest to:
Read DetailsJohnson Manufacturing has provided the following data for it…
Johnson Manufacturing has provided the following data for its most recent year of operation: Selling price per unit $ 47 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 10 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $130,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 63,000 Units in beginning inventory 0 Units produced during the year 10,000 Units sold during the year 9,000 Units in ending inventory 1,000 The net operating income (loss) under variable costing is closest to:
Read DetailsThe Purple Music had the following budgeted sales for the fi…
The Purple Music had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $90,000 $190,000 February $95,000 $210,000 March $30,000 $170,000 April $25,000 $110,000 May $35,000 $240,000 June $120,000 $40,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:Collections on credit sales:50% in month of sale40% in month following sale10% in second month following saleThe accounts receivable balance on January 1 of the current year was $65,000, of which $50,000 represents uncollected December sales and $15,000 represents uncollected November sales. (December credit sales were $100,000 and the November credit sales were $150,000.)The total cash collected during January by Purple Music would be:
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