管理会计作业1解析.docx

1、管理会计作业1解析Assignment 11. Contribution Format versus Traditional Income StatementMarwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $125 each from the manufacturer. Marwicks Pianos, Inc., sells the pianos to its custom

2、ers at an average price of $250 each. The selling and administrative costs that the company incurs in a typical month are presented below:CostsCost FormulaSelling:Advertising $800per monthSales salaries and commissions $1,200per month, plus 10% of salesDelivery of pianos to customers $15per piano so

3、ldUtilities $500per monthDepreciation of sales facilities $750per monthAdministrative:Executive salaries $2,000per monthInsurance $250per monthClerical $700per month, plus $5 per piano soldDepreciation of office equipment $400per monthDuring June, Marwicks Pianos, Inc., sold and delivered 100 pianos

4、.Required: 1. Prepare an income statement for Marwicks Pianos, Inc., for June. Use the traditional format, with costs organized by function. 2. Redo (1) above, this time using the contribution format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down

5、 through contribution margin. 3. Refer to the income statement you prepared in (2) above. Why might it be misleading to show the fixed costs on a per unit basis?2. Sales Mix; Break-Even Analysis; Margin of SafetyIsland Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy.

6、Present revenue, cost, and sales data for the two products follow:Hawaiian Fantasy Tahitian JoySelling price per unit $20.00$25.00Variable expenses per unit $14.00$10.00Number of units sold annually 25,00010,000Fixed expenses total $270,000 per year. The Republic of Palau uses the U.S. dollar as its

7、 currency.Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the break-even point in dollars for the company as a whole and the margin

8、 of safety in both dollars and percent. 2. The company has just developed a new product to be called Samoan Delight. Assume that the company could sell 12,000 units at $17.50 each. The variable expenses would be $14.00 each. The companys fixed expenses would not change. a. Prepare another contributi

9、on format income statement, including sales of the Samoan Delight (sales of the other two products would not change). b. Compute the companys new break-even point in dollars and the new margin of safety in both dollars and percent. 3. The president of the company examines your figures and says, “The

10、res something strange here. Our fixed costs havent changed and you show greater total contribution margin if we add the new product, but you also show our break-even point going up. With greater contribution margin, the break-even point should go down, not up. Youve made a mistake somewhere.” Explai

11、n to the president what has happened.3. Changes in Fixed and Variable Costs; Break-Even and Target Profit AnalysisNeptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new

12、 toy will sell for $5.50 per unit. Enough capacity exists in the companys plant to produce 20,000 units of the toy each month. Variable costs to manufacture and sell one unit would be $2.75, and fixed costs associated with the toy would total $70,000 per month. The companys Marketing Department pred

13、icts that demand for the new toy will exceed the 20,000 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed cost of $5,000 per month. Variable costs in the rented facility would total $3.00 per unit, due to somewhat less efficient o

14、perations than in the main plant. Required: 1. Compute the monthly break-even point for the new toy in units and in total dollar sales. Show all computations in good form. 2. How many units must be sold each month to make a monthly profit of $3,000? 3. If the sales manager receives a bonus of 5 cent

15、s for each unit sold in excess of the break-even point, how many units must be sold each month to earn a return of 4.9% on the monthly investment in fixed costs?4. Schedule of Cost of Goods Manufactured; Income Statement; Cost BehaviorSelected account balances for the year ended December 31 are prov

16、ided below for Superior Company: Selling and administrative salaries$80,000Insurance, factory$4,500Utilities, factory$20,000Purchases of raw materials$155,000Indirect labor$36,000Direct labor?Advertising expense$32,000Cleaning supplies, factory$3,000Sales commissions$60,000Rent, factory building$100

17、,000Maintenance, factory$25,000Inventory balances at the beginning and end of the year were as follows:Beginning ofEnd ofthe Yearthe YearRaw materials $13,000$18,000Work in process ?$21,500 Finished goods $31,000? The total manufacturing costs for the year were $399,500; the goods available for sale

18、 totaled $434,000; and the cost of goods sold totaled $405,600.Required: 1. Prepare a schedule of cost of goods manufactured and the cost of goods sold section of the companys income statement for the year. 2. The company produced the equivalent of 25,000 units during the year. Compute the average c

19、ost per unit for direct materials used and the average cost per unit for rent on the factory building. 3. In the following year the company expects to produce 20,000 units. What average cost per unit and total cost would you expect to be incurred for direct materials? For rent on the factory buildin

20、g? (Assume that direct materials is a variable cost and that rent is a fixed cost.) 4. Explain to the president the reason for any difference in the average cost per unit between (2) and (3) above.5. High-Low Method; Cost of Goods ManufacturedCarlyle Company manufactures a single product. The compan

21、y keeps careful records of manufacturing activities from which the following information has been extracted:Level of ActivityJanuaryLowAprilHighNumber of units produced 7,2009,000Cost of goods manufactured $225,000$270,000Work in process inventory, beginning $4,500$14,400Work in process inventory, e

22、nding $5,400$8,100Direct materials cost per unit $3.60$3.60Direct labor cost per unit $7.50$7.50Manufacturing overhead cost, total ?The companys manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning, management wants to determine how much

23、of the overhead cost is variable with units produced and how much of it is fixed per month.Required: 1. For both January and April, estimate the amount of manufacturing overhead cost added to production. The company had no underapplied or overapplied overhead in either month. (Hint: A useful way to

24、proceed might be to construct a schedule of cost of goods manufactured.) 2. Using the high-low method, estimate a cost formula for manufacturing overhead. Express the variable portion of the formula in terms of a variable rate per unit of product. 3. If 8,400 units are produced during a month, what

25、would the cost of goods manufactured be? (Assume that work in process inventories do not change and that overhead cost is neither underapplied nor overapplied for the month.)6.High-Low Analysis and Predicting CostProspero Corporations total overhead costs at various levels of activity are presented

26、below:MonthMachine-HoursTotal Overhead CostsAugust 8,000$119,400September 12,000$142,800October 16,000$166,200November 4,000$93,120Assume that the total overhead costs above consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of a

27、ctivity is:Utilities (variable) $11,520Supervisory salaries (fixed) 15,600Maintenance (mixed) 66,000Total overhead costs $93,120 Prospero Corporations management wants to break down the maintenance cost into its basic variable and fixed cost elements.Required: 1. Estimate how much of the $166,200 of

28、 overhead cost in October was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $166,200 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) 2. Using the high-low method, estimate a cost formula for maintenan

29、ce. 3. Express the companys total overhead costs in the linear equation form Y = a + bX. 4. What total overhead costs would you expect to be incurred at an operating activity level of 15,000 machine-hours?7.High-Low Method; Predicting CostSusumi Corporation, of Japan is a manufacturing company whose

30、 total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs (in Japanese yen, denoted by ) at high and low levels of activity for recent years are given below:Level

31、 of ActivityLowHighDirect labor-hours 5,0006,000Total factory overhead costs 14,000,00015,150,000The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 5,000-hour level of activity as follows:Indirect materials (variable) 2,500,000Rent (fixed) 7,000,000Maintenance (mixed) 4,500,000Total factory overhead costs 14,000,000To have data av