TEST 2 – Take Home

You must support ALL of your answers with clearly labeled calculations. Only one answer per page. Label each page with the
name of the problem. Example: The first problem would be labeld “YUN”

For breakeven analysis problems you MUST use the unit contribution margin for the number of units to achieve goals and
contribution margin ratio for the number of dollars to achieve goals

If your answers do not come out even, round to THE NEAREST DOLLAR.

Suggested Step 1.

Each member of the group work all the problems on their own by writing down the solution first and then filling
in the data needed to solve the problem. Work the problem two or three times until you understand what you need
to know to solve the problem and are not just memorizing. I am available for help with this, but only to understand the
concept not to help you solve a specific problem on the test.

Suggested Step 2.

Meet as a group and repeat Step 1 as a group and turn in.

Given the following data for Yun Company for the year 2015. Yun began business
in 1991. Partial financial information is given below

Beginning work-in-process $200

Direct Materials transferred out 300

Direct Materials available to be put into production 900

Direct Labor 500

Work-in-process transferred to finished goods 400

Goods Available for sale 2,800

Cost of Goods Sold using applies factory overhead 700

Actual overhead costs 800

Applied factory overhead is twice the direct labor costs. Applied factory overhead is 70% variable.

Ending direct materials inventory is:

Beginning finished goods inventory is

Ending work-in-process inventory is:

The dollar amount of variable manufacturing costs for the year is:

Cost of goods sold for income statement purposes is:

Selected data concerning the past fiscal year’s operation of the KNY Manufacturing Company are presented below.
Inventories
Beginning Ending
Direct materials $ 60 $ 50
Work-in-process 10 80
Finished goods 15 90

Other data:
Direct materials purchased: 580
Work in process to account for 700
Selling and general expenses 100
Actual overhead 70

Total manufacturing costs charged to production during

the year (includes direct materials, direct labor, and applied
factory overhead (fixed and variable combined) applied at a rate of 2 times direct labor costs) .

The cost of direct materials transferred to work in process is:

The amount of applied factory overhead charged to production during the year is:

The cost of goods manufactured for the year is:

The cost of goods sold using applied factory overhead is:

The cost of goods sold for income statement purposes is:

The Cypress Refrigerator Co. shows the following records for the period ended December 31, 2009:

Inventories January 1
Materials $ 50,000
Work-in-process $ 190,000
Finished Goods $ 40,000
Work-in-process (units) -0- units
Finished goods (units) 5,000 units

Direct labor $ 70,000

Applied Factory Overhead $ 48,000
Actual Factory Overhead $ 46,000
Selling expenses (all fixed) $ 52,000
General and administrative (all fixed) $ 75,000
Sales (16,000 units) $420,000
Materials purchased $150,000

Inventories, December 31
Materials $ 30,000
Work-in-process $ 100,000
Finished goods (dollars) $ 60,000
Finished goods (units) 3,000 units

The number of units started and completed is:

The gross profit on the income statement is:
The number of units available for sale is:
The dollar amount of cost of goods sold for income statement purposes is:
The dollar amount transferred out of work-in-process to finished goods is:
Thunderbird uses a job order cost system and applies factory overhead to production
orders on the basis of direct-labor hours. Budgeted factory overhead for the year was $20,000
and budgeted direct labor hours was 100,000 .

Direct labor was paid at the rate of $10 per hour.

Job 123 was started last year and still not finished this year and Job 456 was started and completed
in the current year.

JOB 123 JOB 456

Direct Labor Hours 2,000 1,000

Beginning Work-In-Process $ 7,000 $ -0-
Direct Materials $ 4,000 $ 3,000
Actual overhead to date $10,200 $ 4,700

The total manufacturing costs for both jobs combined are:

The total cost of goods manufactured for both jobs combined is:

The total ending work-in-process for both jobs combined is:

NEU Manufacturing Co. (USE THE WEIGHTED AVERAGE METHOD)

Beginning Work-in-Process: 14,000 units 90% completed at a cost of $70,000

Ending Work-in -process: 10,000 units 20% complete

Units transferred out 40,000 units

Manufacturing costs for the current period:

Direct Materials $48,000
Direct Labor 35,000
Applied Manufacturing Overhead 15,000
Actual overhead 14,900

INVENTORY ITEM UNITS DOLLARS

BEGINIINING FINISHED GOODS INVENTORY 6,000 22,000
ENDING FINISHED GOODS INVENTORY 9,000 35,000

The dollar amount of the units transferred to finished goods is:

The dollar amount of the ending work-in-process is:

The dollar amount of cost of goods sold using the applied overhead rate is:

The dollar amount of cost of goods sold for income statement purposes is:

The number of units started and completed is:

The number of units sold is:

 Vande Kamps Inc. books showed the following data for 2015:

Unit sales price $16

Variable cost per unit $ 12
Total fixed Cost $60,000
Corporation flat income tax rate 40%

Sales dollars needed to breakeven is:

Sales dollars needed to achieve net income after tax of $90,000 assuming the
company will not pay income tax is:

Sales dollars needed to achieve net income after tax of $120,000 is:

Units needed to to achieve net income after tax of $24,000 assuming the company
will not pay income tax is:

The number of units to breakeven is:

The number of units to achieve after tax net income of $30,000 is:
The Westwood Tool Manufacturing Company shows the following factory overhead costs at
various levels of direct labor hours for the first half of the year.

MONTHS DIRECT LABOR HOURS FACTORY OVERHEAD

JANUARY 6,000 $12,000
FEBRUARY 12,000 25,000
MARCH 11,000 22,000
APRIL 4,000 11,000
MAY 14,000 31,000
JUNE 16,000 35,000

The estimated total costs for 25,000 direct labor hours using the high-low method are:
John Li has a booth at the county fair. He is selling bottles of Cleaning Solution,
The selling price of the bottles is $10 and he pays the elf $7 to buy the bottles.
Rent, his only fixed cost, is $30.

John sold two bottles, paid the Ninja his share of the sales dollars collected and put the rest in the rent
basket..

(1)After selling two bottles, how much money does John have in the rent basket to help pay his rent?

(2) How much more money must John pay the elf before he has enough money in the basket to
pay his rent?
 Kinbex, Inc. produces cutlery sets out of high-quality wood and steel.

The company makes a deluxe cutlery set and a standard set that have the following
unit contribution margin data:

DELUXE STANDARD
SELLING PRICE $15 $10
VARIABLE COST PER UNIT 12 5
SALES MIX 3 2

FIXED COST = $76,000

How many deluxe and standard units must Kinbex sell in order to break even?

Deluxe =

Standard =