Compute the total expected dollar sales for next period and


Question 1:

Prepare journal entries to record the following production activities.

1 Purchased $30,000 of raw materials on credit.

Event General Journal Debit Credit
1 Raw materials inventory $30,000  
  Accounts payable
$30,000

2 Used $21,000 of direct materials in production.

Event General Journal Debit Credit
1 Goods in process inventory $21,000  
  Raw materials inventory
$21,000

3 Used $19,500 of indirect materials.

Event General Journal Debit Credit
1 Factory overhead $19,500  
  Raw materials inventory
$19,500

Question 2:

Prepare journal entries to record the following production activities.

1 Incurred total labor cost of $83,000 which is paid in cash

Event General Journal Debit Credit
1 Factory payroll $83,000  
  Cash
$83,000

2 Used $64,000 of direct labor in production.

Event General Journal Debit Credit
1 Goods in process inventory $64,000  
  Factory payroll
$64,000

3 Used $19,000 of indirect labor.

Event General Journal Debit Credit
1 Factory overhead $19,000  
  Factory payroll
$19,000

Question 3: Prepare journal entries to record the following production activities.

1 Transferred completed products with a cost of $133,000 to finished goods inventory

Event General Journal Debit Credit
1 Finished goods inventory $133,000  
  Goods in process inventory
$133,000

2 Sold $448,000 of products on credit. Their cost is $166,000

Event General Journal Debit Credit
1
$448,000  
 

$448,000

Question 4:

Bloom Company management predicts that it will incur fixed costs of $261,000 and earn pretax income of $393,900 in the next period. Its expected contribution margin ratio is 59%.

1 Compute the amount of total dollar sales.

2 Compute the amount of total variable costs.

Sales
Fixed Costs
Pretax income
Variable costs

Question 5:

Felix & Co. reports the following information about its sales and total costs.

Period Units Sold Total Costs Period Units Sold Total Costs
1 0 2,530 6 2,030 5,530
2 430 3,130 7 2,430 6,130
3 830 3,730 8 2,830 6,730
4 1,230 4,330 9 3,230 7,330
5 1,630 4,930 10 3,630 9,064

Hint: (Draw an estimated line of cost behavior using a scatter diagram offline.)

Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method. (Round cost per unit to 2 decimal places.)

Question 6:

A jeans maker is designing a new line of jeans called the Slims. The jeans will sell for $295 per pair and cost
(Round your answers to 2 decimal places.)

(1) Compute the contribution margin per pair

(2) Compute the contribution margin ratio

Question 7:

Blanchard Company manufactures a single product that sells for $184 per unit and whose total variable costs are $138 per unit. The company's annual fixed costs are $699,200.

price per unit
total variable costs per unit
annual fixed costs

Prepare a contribution margin income statement for Blanchard Company at the break-even point

BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even) % of sales
Sales


   
Contribution margin

Assume the company's fixed costs increase by $137,000

What amount of sales (in dollars) is needed to break even?

Question 8:

Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $152 per unit. The company targets an annual after-tax income of $665,000. The company is subject to a 30% income tax rate. Assume that fixed costs remain at $562,400.

(1) Compute the unit sales to earn the target after-tax income.

(2) Compute the dollar sales to earn the target after-tax net income

Question 9:

Nombre Company management predicts $530,000 of variable costs, $830,000 of fixed costs, and a pretax income of $209,500 in the next period. Management also predicts that the contribution margin per unit will be $63.

(1) Compute the total expected dollar sales for next period

(2) Compute the number of units expected to be sold next period

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Accounting Basics: Compute the total expected dollar sales for next period and
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