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Cost of paper for each batch cost of ink and glue for each batch Cost of 1,000 gold boxes for each batch Direct labor for producing each batch cost of designing each batch Cost per batch
Overhead Charges Total Cost Total Cost No. of boxes Cost per box of stationery b. Boxes per month No. of boxes/ batch No. of Batches *Same cost behavior pattern in June Cost of paper for each batch cost of ink and glue for each batch Cost of 1,000 gold boxes for each batch Direct labor for producing each batch
Overhead Charges Total Cost Total Cost No. of boxes Cost per box of stationery c.
d. 120,000 boxes of stationery No. of boxes per month Sales price per box Sales Cost of Goods Sold Gross Margin Gross Margin (120,000 boxes) Gross Margin (80,000 boxes) Excess of Gross Margin of 120,000 boxes over 80,000 boxes Boxes Excess of Sales price per box(120,000 boxes) 120,000 boxes of stationery Sales price per box Excess in Sales Price to equate with Gross Margin of 80,000 boxes Should be price per box
No. of boxes per month Sales price per box Sales Cost of Goods Sold Gross Margin
e. No. By producing more boxes per batch, PlumView Printers would also incur higher Cost of paper, Cost of ink and glue, Cost of gold boxes, direct labor and cost of designing per batch which will not result to lower cost.
49. LO.4-LO.7 (Cost Flows; CGM; CGS) Case 1 Sales Direct Materials Used Direct Labor Prime Cost Conversion Cost Manufacturing Overhead Cost of Goods Manufactured Beginning Work In Process Inventory Ending Work In Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income 9,300 1,200 2,500 3,700 4,800 6,200 500
Solutions: CASE 1 Sales Cost of Goods Sold Gross Margin Operating Expenses Income from Operations
Beginning Work In Process Inventory Manufacturing Costs for the Period Direct Materials Used Direct Labor Manufacturing Overhead Total Costs to account for Ending Work In Process Inventory
Beginning Finished Goods Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Finished Goods Inventory Cost of Goods Sold
CASE 2 Sales Cost of Goods Sold Gross Margin Operating Expenses Income from Operations 19700 12200 7500 3500 4000
Beginning Work In Process Inventory Manufacturing Costs for the Period Direct Materials Used Direct Labor Manufacturing Overhead Total Costs to account for Ending Work In Process Inventory Cost of Goods Manufactured
Beginning Finished Goods Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Finished Goods Inventory Cost of Goods Sold
CASE 3 Sales Cost of Goods Sold Gross Margin Operating Expenses Income from Operations
Manufacturing Costs for the Period Direct Materials Used Direct Labor Manufacturing Overhead Total Costs to account for Ending Work In Process Inventory Cost of Goods Manufactured
Beginning Finished Goods Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Finished Goods Inventory Cost of Goods Sold
Fixed Direct
Indirect
Period
Product
80,000 500 160 10,000 1,000 32,000 16,000 20,000 79,000 160 12640000 408,000 13,048,000 13,048,000 80,000 163.1
batches
20,000 79,000 240 batches 18960000 408,000 19,368,000 19,368,000 120,000 161.4
120,000 195 23400000 19368000 4032000 4032000 2552000 1480000 120,000 12.33333333
not equal to
80,000 boxes of stationery No. of boxes per month Sales price per box Sales Cost of Goods Sold Gross Margin
No. of boxes per month Sales price per box Sales Cost of Goods Sold Gross Margin
Case 2 19700 6,100 4900 11000 8200 3300 14000 900 1200 1900 3700 12200 7500 3500 4000
Case 3 112000 18200 32100 50300 49300 17200 5600 4200 7600 72200 18000
9,300
2200
500
6,200
6,200 1,200
900
112000
es per month