Question 1. Jones Co. manufactures a product called Zenns in a three-process series. All materials are introduced at the beginning of the first process. Jones uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of October 2003 follow:
Units Completion Cost Work in Process Inventory:
Octobet: 1 """"""""""""""""""""""""""" 11,000 70% $122,500
October 31 """"""""""""""""""""""""""" 6,000 50% '?
Started in October:
Direct Materials Cost , 96,000
Conversion .Cost 61,000
Completed in October , 17,000 '?
Prepare Jones' Department A Cost of Production Report for October
Question 2. Hitch Company sells Products Sand T and has made the following estimates for the coming year: Product Unit Selling Price Unit Variable Cost Sales Mix
S $30 $24 60% T 70 56 40
Fixed costs are estimated at $202,400. Determine (a) the estimated sales in units of the overall product necessary to reach the breakeven point for the coming year, (b) the estimated number of units of each product necessary to be sold to reach the breakeven point for the coming year, and (c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year.