1) Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:Work-in-process inventory (January 1) Work-in-process inventory (March 31) Finished goods inventory (January 1) Finished goods inventory (March 31) Direct materials usedIndirect materials usedDirect manufacturing labourIndirect manufacturing labourProperty taxes on manufacturing plant building Salespersons' company vehicle costs Amortization of manufacturing equipment Amortization of office equipment Miscellaneous plant overheadPlant utilitiesGeneral office expensesMarketing distribution costs$140,400 171,000 540,000 510,000 378,00084,000 480,000 186,00028,80012,000 264,000 123,600 135,00092,400 305,400 30,000Required:a. Prepare a cost of goods manufactured schedule for the quarter.b. Prepare a cost of goods sold schedule for the quarter.2) Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500.Required:a. What is the contribution margin per phone?b. What is the break-even point in phones?c. How many phones must be sold to earn pre-tax income of $7,500?
1) Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:
Work-in-process inventory (January 1) Work-in-process inventory (March 31) Finished goods inventory (January 1) Finished goods inventory (March 31) Direct materials used
Indirect materials used
Direct manufacturing labour
Indirect manufacturing labour
Property taxes on manufacturing plant building Salespersons' company vehicle costs Amortization of manufacturing equipment Amortization of office equipment Miscellaneous plant overhead
Plant utilities
General office expenses
Marketing distribution costs
$140,400 171,000 540,000 510,000 378,000
84,000 480,000 186,000
28,800
12,000 264,000 123,600 135,000
92,400 305,400 30,000
Required:
a. Prepare a cost of goods manufactured schedule for the quarter.
b. Prepare a cost of goods sold schedule for the quarter.
2) Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed
Required:
a. What is the contribution margin per phone?
b. What is the break-even point in phones?
c. How many phones must be sold to earn pre-tax income of $7,500?
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