Student Name:
Class:
Part a.
7,800$
48,300
43,800
12,300$
Correct!
Instructor
McGraw-Hill/Irwin
Exercise 02-41
Beginning direct materials inventory
MONROE FABRICATORS
Transferred Out
Transferred In
Ending direct materials inventory
Part b.
81,450$
Ending work-in-process inventory
Cost of goods sold
Direct labor
Manufacturing overhead
Total manufacturing cost
Total Manufacturing cost
Beginning work-in-process inventory
Cost of goods manufactured
Gross margin
7,800$
a. ?
8,100
11,400
5,700
Work-in-process inventory, December 31
Given Data E02-41:
MONROE FABRICATORS
Direct materials inventory, January 1
Work-in-process inventory, January 1
Direct materials inventory, December 31
Finished goods inventory, January 1
Sales revenue
Manufacturing overhead
Direct materials used
Direct labor
Gross margin
Cost of goods sold
Total manufacturing cost
Cost of goods manufactured during the year
Purchases of direct materials
Finished goods inventory, December 31
Student Name:
Class:
270$
165
60
495$ «- Correct!
MADRID CORPORATION
Instructor
McGraw-Hill/Irwin
Exercise 02-46
Direct Materials
Direct Labor
Variable Manufacturing Overhead
Variable Manufacturing Costs
Fixed Manufacturing overhead:
Full-absorption Cost
Fixed Marketing and Administrative Cost
Full Cost of Making and Selling Product
Variable Marketing and Administrative Cost
Unit Variable Cost
900$
Given Data E02-46:
Information provided by accounting system:
Fixed costs (for the month)
Sales price (per unit)
MADRID CORPORATION
Units produced and sold (for the month)
Direct labor
Manufacturing overhead
Direct materials
Marketing and administrative
Variable costs (per unit)
Manufacturing overhead
Marketing and administrative
Student Name:
Class:
a.
9,000$
120,000
Correct!
c.
4,500$
e.
Manufacturing Overhead
Direct Labor
Direct materials
Manufacturing Overhead
Total Manufacturing Costs Computation
Direct Labor
Total Conversion Cost Computation
Ending Finished Goods Inventory
Beginning Finished Goods Inventory
Cost of Goods Manufactured
Cost of Goods Manufactured Calculation
Cost of Goods Sold Calculation
Ending Work-in-Process
Total Manufacturing Costs
Beginning Work-in-Process
Problem 02-54
McGraw-Hill/Irwin
Instructor
CHELSEA, INC.
Total Prime Cost Computation
Plus Purchases
Beginning Inventory
Minus Ending Inventory
Direct Labor
Direct materials
9,000$
7,500
Given Data P02-54:
Information provided by accounting records:
CHELSEA, INC.
Direct materials inventory, May 1
Direct materials inventory, May 31
Manufacturing overhead, May
Direct materials purchased during May
Direct labor costs, May
Work-in-process inventory, May 1
Work-in-process inventory, May 31
Finished goods inventory, May 1
Finished goods inventory, May 31
Student Name:
Class:
a.
Computations
1.
70$
Correct!
2.
56$
3.
14$
4.
56$
Direct materials
Direct labor
Variable manufacturing overhead
Direct labor
Variable overhead
Variable cost
Variable Cost per Unit
Fixed manufacturing overhead
Full Absorption Cost per Unit
Direct materials
Direct labor
Variable costs
Variable overhead
Direct materials
75
Problem 02-56
McGraw-Hill/Irwin
Instructor
COLUMBIA PRODUCTS
Variable Manufacturing Cost
Manufacturing overhead
Fixed marketing and administrative cost
Fixed manufacturing
Full Unit Cost
Direct materials
Direct labor
5.
35$
Correct!
6.
35$
Manufacturing overhead
Correct!
7.
448$
8.
448$
9.
448$
Full absorption cost
Sales price
Gross Margin per Unit
Variable costs
Sales price
Contribution Margin per Unit
Full cost
Profit Margin per Unit
Direct labor
Sales price
Conversion Cost per Unit
Direct labor
Prime Cost per Unit
Direct materials
448$
Manufacturing costs:
Information provided by accounting system:
Given Data P02-56:
COLUMBIA PRODUCTS
Sales price (per unit)
Variable overhead (per unit)
Fixed costs (for the month)
Variable costs (per unit)
Direct labor (per unit)
Direct materials (per unit)
Marketing and administrative costs:
Fixed overhead (for the month)
Student Name:
Class:
Baseline Rent
(status quo) Equipment Difference Change
4,800,000$ 4,800,000$ –$ No Change
(600,000) (600,000) – No Change
Baseline Rent
(status quo) Equipment Difference
Other depreciation
Equipment depreciation
Fixed cash expenditures
Variable
c. Would you rent the new equipment? Why or why not?
4,800,000$ 5,136,000$ 336,000$ Higher
– (690,000) 690,000 Higher
Instructor
McGraw-Hill/Irwin
Variable
Operating costs:
Sales Revenue
Integrative Case 2-69
a. This year’s income statement
Drive Systems Division (DSD)
Tunes2Go
Equipment rental
Operating costs:
Sales Revenue
b. Next year’s income statement
Loss from equipment write-off
Other depreciation
Equipment depreciation
Fixed (cash expenditures)
3,000,000$
690,000$
7%
No salvage value
Given Data IC2-69:
Tunes2Go
Percentage increase in DSD’s annual revenue
Annual rental charge for new testing machine
Cost of existing automated testing equipment
Drive Systems Division (DSD)
4,800,000$
Sales revenue
Percentage decrease in fixed cash expenditures
Variable operating costs
Fixed operating costs
Equipment depreciation
Other depreciation