|
|
Incurred total labor cost of $79,000, which is paid in cash.
Used $56,000 of direct labor in production.
Used $23,000 of indirect labor.
Exercise 20-5 Recording cost of completed goods LO P4
|
Prepare journal entries to record the following activities.
|
|
|
Transferred completed products with a cost of $128,000 to finished goods inventory
Sold $443,000 of products on credit. Their cost is $167,000
Exercise 21-5 Predicting sales and variable costs using contribution margin LO C2
|
Bloom Company management predicts that it will incur fixed costs of $255,000 and earn pretax income of $427,500 in the next period. Its expected contribution margin ratio is 65%.
|
|
|
Compute the amount of total dollar sales.
Compute the amount of total variable costs
Exercise 21-7 Cost behavior estimation-scatter diagram and high-low LO P1
|
Felix & Co. reports the following information about its sales and cost of sales.
|
|
Period
|
Units
Sold
|
Cost of
Sales
|
Period
|
Units
Sold
|
Cost of
Sales
|
|
1.
|
0
|
$
|
2,560
|
6.
|
2,060
|
5,560
|
|
2.
|
460
|
|
3,160
|
7.
|
2,460
|
6,160
|
|
3.
|
860
|
|
3,760
|
8.
|
2,860
|
6,760
|
|
4.
|
1,260
|
|
4,360
|
9.
|
3,260
|
7,360
|
|
5.
|
1,660
|
|
4,960
|
10.
|
3,660
|
8,050
|
|
|
Hint: (Draw an estimated line of cost behavior using a scatter diagram offline.)
|
|
Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method. (Round cost per unit to 2 decimal places.)
|
Exercise 21-12 Income reporting and break-even analysis LO C2
|
Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The company’s annual fixed costs are $432,000.
|
|
|
|
