Homework Chapter 4 Managerial Accounting

E -11
DM 5
DL 4
VMO 3
FMO = 180,000/50,000 = 3.6
Total = 15.6

15.6 * 5,000 (50,000-45000) = 78,000
E-12
DM 5
DL 4
VMO 3
Cost per unit = 12 $
EIV = 12 * 5000 = 60,000

E-13
Difference 3.6 * 5000 = 18,000
And 78,000 – 60,000 = 18,000
E-14
CGS sold = 45000(sold) * 15.60 = 702,000

E15
12 * 45000 = 540,000
E16
Sales = 30 * 45,000 = 1,350,000
CGS 702,000
CM 648,000
Less S & admin. 160,000
Net income 488,000
E17
Sales = 30 * 45,000 = 1,350,000
Less var. CGS 12*45000 540,000
CM 810,000 less fixed costs:
FMO 180,000
Fixed S & admin. 160,000
Net income 470,000

EX5-18

3.6 * 5000 = 18,000
And 488,000 – 470,000 = 18,000
Problem 5-2
VC per unit = 75 2013 2014 2015
Full cost per unit = 50,000/5000 50,000/6,000 50,000/4000 10 8.33 12.50
Add 75 75 75
= 85 83.33 87.50
Sales= 225*5000 1,125,000 1,125,000 1,125,000
Less CGS 85*5,000 83.33*5000 87.5 *4000 +83.33*1000 = 425,000 416,000 433,333

CM = 700,000 708,350 691,667
Less s&admin 5,000 5,000 5,000
Net Income 695,000 703,350 686,667
EINV 0 83.33 * 1000 0 =83,330
b. In 2016 production exceeded the sales. The fixed manufacturing ov. Expense from 2015 ending inventory is included in CGS in 2016. Which explains the lowest income in 2016.
In 2015 because production was more than sales . The FMOverhead costs were applied to production is not part of CGsold but part of ending inventory.

c. 2013 2014 2015
Full cost per unit = 50,000/5000 50,000/6,000 50,000/4000 10 8.33 12.50
Add 75 75 75
= 85 83.33 87.50
Sales= 225*5000 1,125,000 1,125,000 1,125,000
Less vCGS(75*5,000)
= 375,000 375,000 375,000 cm = 750,000 750,000 750,000

CM = 700,000 708,350 691,667
Less FC:
Mfo/production 50,000 50,000 50,000
Less s&admin 5,000 5,000 5,000