HW2
HW2
HW2
E1-2
E1-3
E1-5
E1-7
E1-12
1a. Number of Batteries bought 8,000
Number of Batteries withdrawn 7,600
Cost per Battery $80.00
Finsished Goods Inventory = Number of Batteries used in Production x Degree of Completion x Unsold Quan
2,025.00
1d. Number of Batteries Sold = Number of Batteries used in Production - Work in Process Inventory - Finished G
4,725
Selling Expense = Batteries used in travelling sales staff car x cost per battery
$8,000.00
E1-8
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
20,000
ble manufacturing cost per unit) + Total fixed selling and administrative expense
22,000
ufacturing cost per unit) + Total fixed manufacturing cost
18,000
ble manufacturing cost per unit) + Total fixed selling and administrative expense
ng overhead * Number of units Produced
E1-15
Requirement 1
Sales $150,000
Cost of Good Sold $90,000 ($30,000 + $100000 – $40,000)
Gross Margin $60,000
Selling Expenses $30,000 (($50 per unit × 200 pairs of skis*) + $20,000)
Administrative Expenses $22,000 (($10 per unit × 200 pairs of skis*) + $20,000)
Sales $150,000
Variable Expenses
Cost of Good Sold $90,000 ($30,000 + $100000 – $40,000)
Selling Expenses $10,000 (($50 per unit × 200 pairs of skis*)
Administrative Expenses $2,000 (($10 per unit × 200 pairs of skis*)
$102,000
Contribution Margin $48,000
Selling Expenses $20,000
Administrative Expenses $20,000
$40,000
Requirement 3
Contribution Margin Per Unit $240 ($48,000/200= $240)
E1-17
P1-23
s of skis*) + $20,000)
s of skis*) + $20,000)