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管理会计quiz 1--ch 1 2 3
QUIZ 1 ----CH1/2/31.Schedule of Cost of Goods Manufactured; Income Statement; Cost BehaviorSelected account balances for the year ended December 31 are provided below for Superior Company:(20 MARKS)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$100,000Maintenance, factory$25,000Inventory balances at the beginning and end of the year were as follows:Beginning ofEnd of?the 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 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 company’s income statement for the year.2.The company produced the equivalent of 25,000 units during the year. Compute the average cost 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 building? (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.2. Variable Costing Income Statement; Reconciliation (20 MARKS)During Denton Company’s first two years of operations, the company reported absorption costing net operating income as follows:Year 1Year 2Sales (@$60 per unit)$2,400,000$3,600,000Cost of goods sold?1,720,000?2,580,000Gross margin680,0001,020,000Selling and administrative expenses*????520,000????600,000Net operating income$??160,000$??420,000_______*$4 per unit variable;
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