MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 5, Problem 1PSA
The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $500 each The Company has a 25% income tax rate.
| Variable production costs | |
| Plastic for casing……………………………………. | $ 17,000 |
| Wages of assembly workers…………………… | 82,000 |
| Drum stands…………………………………………….. | 26,000 |
| Variable selling costs | |
| Sales commissions…………………………………… | 15,000 |
| Fixed manufacturing | |
| Taxes on factory………………………………… | 5,000 |
| Factory maintenance……………………… | 10,000 |
| Factory machinery |
40,000 |
| Fixed selling and administrative costs | |
| Lasts of equipment for sales staff………… | 10,000 |
| Accounting staff salaries……………………… | 35,000 |
| Administrative management salaries….. | 125,000 |
Required
- Prepare a contribution margin income statement or the company.
- Compute its contribution margin per unit and its contribution margin ratio.
Analysis Component
- Interpret the contribution margin and contribution margin ratio from part2.
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The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $500 each. The company has a 25% income tax rate. Variable production costs Plastic for casing . . . . . . . . . . . . . . . . . . . . . . $17,000 Wages of assembly workers . . . . . . . . . . . . . 82,000 Drum stands . . . . . . . . . . . . . . . . . . . . . . . . . 26,000 Variable selling costs Sales commissions . . . . . . . . . . . . . . . . . . . . 15,000 Fixed manufacturing costs Taxes on factory . . . . . . . . . . . . . . . . . . . . . . . $ 5,000 Factory maintenance . . . . . . . . . . . . . . . . . . . 10,000 Factory machinery depreciation . . . . . . . . . . 40,000 Fixed selling and administrative costs Lease of equipment for sales staff . . . . . . . . 10,000 Accounting staff salaries . . . . . . . . . . . . . . . . 35,000 Administrative management salaries . . . . . . 125,000 Required 1. Prepare a…
The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $500 each. The company has a 25% income tax rate.
Variable production costs
Plastic for casing
$
17,000
Wages of assembly workers
82,000
Drum stands
26,000
Variable selling costs
Sales commissions
15,000
Fixed manufacturing costs
Taxes on factory
5,000
Factory maintenance
10,000
Factory machinery depreciation
40,000
Fixed selling and administrative costs
Lease of equipment for sales staff
10,000
Accounting staff salaries
35,000
Administrative management salaries
125,000
Required:
1. Prepare a contribution margin income statement for the year.2. Compute its contribution margin per unit and its contribution margin ratio.3. For each dollar of sales, how much is left to cover fixed costs and contribute to…
Mafraq company produces and sells a tablets for $300 per unit. in 2020, 46.125 tablets were produced and 37.958 were sold. Other information
for the year includes:
Direct materials
540.00 per unit
$ 5.00 per unit
$ 7.50 per unit
Direct manufacturing labor
Variable manufactunng costs
Fixed manufacturing costs
$6250 per unit
Admınistrative expenses, all fixed
53750 per unit
-What is the inventoriable cost per unit using variabie costing
$45.00 A O
552.50 .B O
$65.00.CO
S115.00.D O
None of the above E O
Chapter 5 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 5 - Prob. 1MCQCh. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Prob. 4MCQCh. 5 - Prob. 5MCQCh. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - When output volume increases, do fixed costs per...Ch. 5 - How is the cost-volume-profit analysis useful?Ch. 5 - Prob. 5DQ
Ch. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Prob. 10DQCh. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Prob. 13DQCh. 5 - Prob. 14DQCh. 5 - Prob. 15DQCh. 5 - Prob. 16DQCh. 5 - Prob. 17DQCh. 5 - Prob. 18DQCh. 5 - Prob. 19DQCh. 5 - APPLE Should Apple use single product or...Ch. 5 - Prob. 21DQCh. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - The following information is available for a...Ch. 5 - Prob. 4QSCh. 5 - Prob. 5QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Prob. 12QSCh. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Following are five graphs representing various...Ch. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Copper Company expect to sell 200,000 units of its...Ch. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Prob. 20ECh. 5 - Prob. 21ECh. 5 - Prob. 22ECh. 5 - Prob. 23ECh. 5 - Prob. 24ECh. 5 - Prob. 25ECh. 5 - The following costs result from the production and...Ch. 5 - Prob. 2PSACh. 5 - Prob. 3PSACh. 5 - Astro Co. sold 20,000 units of its only product...Ch. 5 - Prob. 5PSACh. 5 - Prob. 6PSACh. 5 - Patriot Co. manufactures and sells three products:...Ch. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Rivera Co. sold 20,000units of its only product...Ch. 5 - Prob. 5PSBCh. 5 - Prob. 6PSBCh. 5 - Prob. 7PSBCh. 5 - Prob. 5SPCh. 5 - Apple offers extended service contracts that...Ch. 5 - Prob. 2BTNCh. 5 - Prob. 3BTNCh. 5 - Prob. 4BTNCh. 5 - Prob. 5BTNCh. 5 - Prob. 6BTNCh. 5 - Fast Yeti Custom Tees, Launched by entrepreneurs...Ch. 5 - Prob. 8BTNCh. 5 - Access and review Samsungs website...
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