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29. A. A firm operated at 80% of capacity for the past year, during which fixed...

29. A.

  1. A firm operated at 80% of capacity for the past year, during which fixed costs were $203,000, variable costs were 69% of sales, and sales were $1,082,000. Operating profit was

    a. $746,580

    b. $105,936

    c. $335,420

    d. $132,420

28. B.

  1. Zeke Company sells 24,700 units at $14 per unit. Variable costs are $7 per unit, and fixed costs are $38,100. The contribution margin ratio and the unit contribution margin are

    A. 2% and $7 per unit

    B. 50% and $14 per unit

    C. 50% and $7 per unit

  2. D.2% and $14 per unit

29. B.

  

  1. A business operated at 100% of capacity during its first month, with the following results:

    Sales (98 units) $480,200
    Production costs (122 units):
        Direct materials $64,622
        Direct labor 16,499
        Variable factory overhead 28,874
        Fixed factory overhead 27,499 137,494
    Operating expenses:
        Variable operating expenses $5,849
        Fixed operating expenses 4,180 10,029

    What is the amount of the gross profit that would be reported on the absorption costing income statement?

    a. $359,725

    b. $369,754

    c. $363,905

    d. $480,078

29. C.

  1. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business—September, October, and November—are $234,000, $320,000, and $426,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

    The cash collections expected in October from accounts receivable are estimated to be

    a. $211,960

    b. $254,352

    c. $146,440

    d. $179,200

Solutions

Expert Solution
Q29A.
Answer is d. $132,420
Explanation:
Sales revenue 10,82,000
Less: Variable cost @ 69% 746580
Contribution 3,35,420
less: Fixed cost 2,03,000
Operating profit 1,32,420
Q28b.
Answer is C. 50% and 7 per unit
Explanation:
Selling price per unit 14
Less: Variable cost per unit 7
Unit contribution 7
CM ratio= Unit contriution margin / Selling price
7/14 = 50%
Q29B.
Answer is b. $ 369,754
Explanation:
Sales revenue 4,80,200
Less: Manufacturing cost including fixed cost
Production cost of 122 units 1,37,494
Less: Ending inventory 27048
(137494/122*24)
Cost of goods sold 1,10,446
Gross profit 3,69,754
Q29C.
Answer is a. $211,960
Explanation:
Collection in October:
credit sales of Oct (320000*70%*80%) 179200
Credit sales of Sep (234,000*70%*20%) 32760
Collection from Accounts receivable 211960

ekkarill92 answered 2 years ago
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