Thursday 2 August 2012

CompuDesk, Inc., makes an oak desk specially designed for personal computers.

CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year’s operations follow:

  Units in beginning inventory 0  
  Units produced 10,000  
  Units sold 9,000  
  Units in ending inventory 1,000  
  Variable costs per unit:
      Direct materials $  60  
      Direct labor 30  
      Variable manufacturing overhead 10  
      Variable selling and administrative 20  


  Total variable cost per unit $ 120  




  Fixed costs:
      Fixed manufacturing overhead $ 300,000  
      Fixed selling and administrative 450,000  


  Total fixed costs $ 750,000  






Required:
1.
Assume that the company uses variable costing. Compute the unit product cost for one computer desk. (Omit the "$" sign in your response.)

  Unit product cost $ 100 correct  

2.
Assume that the company uses variable costing. Prepare a contribution format income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Variable Costing Income Statement
  Sales correct $ 1,800,000 correct  
  Variable expenses:
       Variable cost of goods sold correct $  correct  
       Variable selling and administrative expenses correct  correct   1,080,000 correct  


  Contribution margin correct 720,000 correct  
  Fixed expenses:
       Fixed selling and administrative expenses correct  correct  
       Fixed manufacturing overhead correct  correct   750,000 correct  


  Net operating income (loss) correct $ -30,000 correct  




3. What is the company’s break-even point in terms of units sold?

  Break-even point n/r incorrect  units

4 comments:

  1. CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $300. Data for last year’s operations follow:


    Units in beginning inventory 0
    Units produced 10,300
    Units sold 8,700
    Units in ending inventory 1,600
    Variable costs per unit:
    Direct materials $ 60
    Direct labor 40
    Variable manufacturing overhead 10
    Variable selling and administrative 30

    Total variable cost per unit $ 140

    Fixed costs:
    Fixed manufacturing overhead $ 220,000
    Fixed selling and administrative 580,000

    Total fixed costs $ 800,000


    Required:
    1.

    Assume that the company uses variable costing. Compute the unit product cost for one computer desk. (Omit the "$" sign in your response.)

    Unit product cost $

    2.

    Assume that the company uses variable costing. Prepare a contribution format income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

    Variable Costing Income Statement
    $
    Variable expenses:
    $



    Fixed expenses:



    $


    3. What is the company’s break-even point in terms of units sold? (Round your answer to the nearest whole number.)

    Break-even point units
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    ReplyDelete
  2. Pl try to solve it . I will help you in it

    ReplyDelete
  3. 3.) $200-$120=$80
    $175000/$80=$9375

    ReplyDelete