Question
In: Accounting
Vinson Co. manufactures and sells one product. Assume the selling price for each item is $225/per...
Vinson Co. manufactures and sells one product. Assume the selling price for each item is $225/per unit. The following information pertains to the company’s first two years of operation:
Variable Costs Per Unit:
Manufacturing:
Direct Materials $34/unit
Direct Labor $23/unit
Variable Selling and Administrative $4/unit
Variable Manufacturing Overhead $6/unit
Fixed Costs:
Fixed Manufacturing Overhead $720,000
Fixed Selling and Administrative $120,000
Additionally, Vinson Company provides you with the following inventory flow information in terms of units for YEAR 1 & YEAR 2:
YEAR 1:
Beginning Inventory (units): 0
Units Produced: 120,000
Units Sold: 90,000
Ending Inventory (units): 30,000
YEAR 2:
Beginning Inventory (units): 30,000
Units Produced: 100,000
Units Sold: 115,000
Ending Inventory (units): 15,000
FOR YEAR 2 PLEASE ANSWER THE FOLLOWING QUESTIONS:
A. Calculate Vinson’s Unit Product Cost/Unit using the Variable Cost Method and Absorption Cost Method:
B. Using the Variable Cost Method----Compute Cost Goods Sold:
C. Using the Absorption Cost Method----Compute Cost Goods Sold:
D. Prepare the Company’s YEAR 2 Contribution Margin Income Statement---properly label and show all amounts:
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Vinson Co. manufactures and sells one product. Assume the selling price for each item is $225/per...
Vinson Co. manufactures and sells one product. Assume the
selling price for each item is $225/per unit. The following
information pertains to the company’s first two years of
operation:
Variable Costs Per Unit:
Manufacturing:
Direct Materials $34/unit
Direct Labor $23/unit
Variable Selling and Administrative $4/unit
Variable Manufacturing Overhead $6/unit
Fixed Costs:
Fixed Manufacturing Overhead $720,000
Fixed Selling and Administrative $120,000
Additionally, Vinson Company provides you with the following
inventory flow information in terms of units for YEAR 1 & YEAR...
Vinson Co. manufactures and sells one product. Assume the selling price for each item is $225/per...
Vinson Co. manufactures and sells one product. Assume the
selling price for each item is $225/per unit. The following
information pertains to the company’s first two years of
operation:
Variable Costs Per Unit:
Manufacturing:
Direct Materials $34/unit
Direct Labor $23/unit
Variable Selling and Administrative $4/unit
Variable Manufacturing Overhead $6/unit
Fixed Costs:
Fixed Manufacturing Overhead $720,000
Fixed Selling and Administrative $120,000
Additionally, Vinson Company provides you with the following
inventory flow information in terms of units for YEAR 1 & YEAR...
Vinson Co. manufactures and sells one product. Assume the selling price for each item is $200/per unit. The...
Vinson Co. manufactures and sells one product. Assume
the selling price for each item is $200/per unit. The
following information pertains to the company’s first two years of
operation:
Variable Costs Per Unit:
Manufacturing:
Direct
Materials $32/unit
Direct
Labor $20/unit
Variable
Manufacturing
Overhead $4/unit
Variable Selling and
Administrative $3/unit
Fixed Costs:
Fixed Manufacturing
Overhead $660,000
Fixed Selling and
Administrative $120,000
Additionally, Vinson Company provides you with the following
inventory flow information in terms of units for YEAR 1 & YEAR
2:
YEAR
1 YEAR
2
Beginning Inventory
(units) 0 20,000
Units...
Vinson Co. manufactures and sells one product. Assume the selling price for each item is $200/per unit. The...
Vinson Co. manufactures and sells one product. Assume
the selling price for each item is $200/per unit. The
following information pertains to the company’s first two years of
operation:
Variable Costs Per Unit:
Manufacturing:
Direct
Materials $32/unit
Direct
Labor $20/unit
Variable
Manufacturing
Overhead $4/unit
Variable Selling and
Administrative $3/unit
Fixed Costs:
Fixed Manufacturing
Overhead $660,000
Fixed Selling and
Administrative $120,000
Additionally, Vinson Company provides you with the following
inventory flow information in terms of units for YEAR 1 & YEAR
2:
YEAR
1 YEAR
2
Beginning Inventory
(units) 0 20,000
Units...
Monterey Co. makes and sells a single product. The current selling price is $18 per unit....
Monterey Co. makes and sells a single product. The current
selling price is $18 per unit. Variable expenses are $10.8 per
unit, and fixed expenses total $39,080 per month. (Unless otherwise
stated, consider each requirement separately.)
Calculate the break-even point expressed in terms of total sales
dollars and sales volume. (Do not round intermediate
calculations.)
Break-even sales
Break-even volume
units
b. Calculate the margin of safety and the margin of safety
ratio. Assume current sales are $115,700. (Do not round...
Riveria Co. makes and sells a single product. The current selling price is $38 per unit....
Riveria Co. makes and sells a single product. The current
selling price is $38 per unit. Variable expenses are $19 per unit,
and fixed expenses total $37,000 per month. Sales volume for May
totaled 4,760 units.
Required:
Calculate operating income for May.
Calculate the breakeven point in terms of units sold and total
revenues.
Management is considering installing automated equipment to
reduce direct labor cost. If this were done, variable expenses
would drop to $13 per unit, but fixed expenses...
Riveria Co. makes and sells a single product. The current selling price is $39 per unit....
Riveria Co. makes and sells a single product. The current
selling price is $39 per unit. Variable expenses are $17 per unit,
and fixed expenses total $39,500 per month. Sales volume for May
totaled 4,550 units. Required: a. Calculate operating income for
May. b. Calculate the break-even point in terms of units sold and
total revenues. (Round your intermediate calculations to the
nearest whole dollar.) c. Management is considering installing
automated equipment to reduce direct labor cost. If this were...
Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is $105.
Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is $105. Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800, and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month. The budgeted accounts receivable balance at the end of August is closest to: A) $525,000 B) S315,000 C) $472,500 D) $787,500
Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted...
Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted unit sales are shown below:
July
August
September
October
Budgeted unit sales
7,300
11,500
14,200
12,100
All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for August is closest to:
Multiple Choice
$551,880
$1,131,480
$919,800
$579,600
ABC Inc. manufactures and sells toys. Price and cost data are as follows: Selling price per...
ABC Inc. manufactures and sells toys.
Price and cost data are as follows:
Selling price per unit (package of 2
CDs)......................................
$20.00
Variable costs per unit:
Direct
material...............................................................................................................
$4.00
Direct
labor......................................................................................................................
$5.00
Artist's
royalties..............................................................................................................
$3.50
Manufacturing
overhead..........................................................................................
$3.00
Selling
expenses............................................................................................................
$1.00
Total variable costs per
unit............................................................
$16.50
Annual fixed costs:
Manufacturing
overhead..........................................................................................
$180,000
Selling and
administrative.......................................................................................
$220,000
Total fixed
costs................................................................................
$400,000
Forecasted annual sales volume (120,000
units).........................
$2,400,000
If the company's direct-labor costs do increase by 8%,
what selling price...
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