Please answer 4-7 oProblem Set: Module 41. EX.06.012. PR.06.02A.ALGO3. BE.06.02.ALGO4. BE.06.03.ALGOengagenow.com●●SalesCost of goods soldGross profitPortmann Company, operating at full capacity, sold 1,000,000units at a price of $188 per unit during the current year. Itsincome statement is as follows:Expenses:Selling expensesAdministrative expenses.Total expensesCost of goods soldSelling expenses$16,000,00010,600,000Administrative expenses+VariableOperating incomeThe division of costs between variable and fixed is as follows:Fixed70%75%50%$188,000,000(101,000,000)$87,000,000(26,600,000)$60,400,0004030%25%50%Management is considering a plant expansion program for thefollowing year that will permit an increase of $11,280,000 inyearly sales. The expansion will increase fixed costs by$5,000,000 but will not affect the relationship between salesand variable costs.Required:4. Compute the break-even sales (units) under the proposedprogram for the following year.units5. Determine the amount of sales (units) that would benecessary under the proposed program to realize the$60,400,000 of operating income that was earned in thecurrent year.units6. Determine the maximum operating income possible withthe expanded plant.7. If the proposal is accepted and sales remain at the currentlevel, what will the operating income or loss be for thefollowing year?DⓇ

The break-even point (BEP) in units is computed using the following formula: - BEP = Total Fixed…

Problem Set: Module 4 1. EX.06.01 2. PR.06.02A ALGO 3. BE 06.02. ALGO 4. BE.06.03 ALGO cengagenow.com ● Portmann Portmann Sales Cost of goods soid Gross profit Expenses Selling expenses Company, operating at full capacity, sold 1,000,000 units at a price of $188 per unit during the current year. Its income statement is as follows: Administrative expenses Total expenses Cost of goods sold Selling expenses Administrative expenses $16,000,000 10,600,000 + Variable 70% 75% 50% units $188,000,000 (101,000,000) $87,000,000

Problem Set: Module 4 1. EX.06.01 2. PR.06.02A ALGO 3. BE 06.02. ALGO 4. BE.06.03 ALGO cengagenow.com ● Portmann Portmann Sales Cost of goods soid Gross profit Expenses Selling expenses Company, operating at full capacity, sold 1,000,000 units at a price of $188 per unit during the current year. Its income statement is as follows: Administrative expenses Total expenses Cost of goods sold Selling expenses Administrative expenses $16,000,000 10,600,000 + Variable 70% 75% 50% units $188,000,000 (101,000,000) $87,000,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...

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Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-15 Refer to the information for Barnard Company on the previous page. The cost of goods sold per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
2-18 Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. Refer to the information for Barnard Company on the previous page. Operating income is a. 34,000. b. 110,000. c. 234,000. d. 270,000. e. 74,000.
Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of 3,000,000. The beginning finished goods inventory was 25,000 units at 310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-13Refer to the information for Barnard Company above. Prime cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
Waskowski Company sells three products (A. B. and C) with a sales mix of 3:2:1. Unit sales price are shown. What is the sales price per composite unit? A. $17.00 B. $25.00 C. $35.00 D. $20.00
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