a) Suppose there is ample idle capacity to produce the units required by the overseas
customer and the special discounted price on the special order is $75.30 per unit. By how
much would this special order increase (decrease) the company's net operating income for
the month?
Variable cost per unit on normal sales:
Direct Materials
Direct Labor
Variable Manufacturing Overhead
Variable Selling & Administrative Expense
Variable cost per unit on normal sales
$38.8
$ 9.7
$ 2.3
$ 1.7
$ 52.5
$ 52.5
$ (0.2)
$ 52.3
Soal III
The following data (in thousands of dollars) have been taken from the accounting records of
Larop Corporation for the just completed year:
Sales ...........................................................................................................$ 970
Purchases of raw materials..........................................................................$ 190
Direct labor..................................................................................................$ 200
Manufacturing overhead..............................................................................$ 230
Administrative expenses..............$ 250
Selling expenses.......................................................................................... $ 140
Raw materials inventory, beginning........................................................... $ 10
Raw materials inventory, ending................................................................. $ 40
Work in process inventory, beginning......................................................... $ 20
Work in process inventory, ending...............................................................$ 50
Finished goods inventory, beginning............................................................$ 90
Finished goods inventory, ending................................................................ $ 130
a) Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw materials inventory
Add: Purchases of raw materials
= Raw materials available for use
Deduct: Ending raw materials inventory
= Raw materials used in production
+ Direct labor
+ Manufacturing overhead:
= Total manufacturing costs
Add: Beginning work in process inventory
=
Deduct: Ending work in process inventory
= Cost of goods manufactured
b) Compute the cost of goods solds
Beginning finished goods inventory
Add: Cost of goods manufactured
Goods available for sale
Deduct: Ending finished goods inventory
Cost of goods sold
$ 10
$ 190
$ 200
$ (40)
$160
$ 200
$ 230
$ 590
$ 90
$ 680
$(130)
$ 550
$ 90
$ 550
$ 640
$(130)
$ 510
Using data from your answer above needed prepare an income statement in good form
Soal no IV
HanifahCompanyproducesandsellsasingleproduct.Thecompanysincomestatementforthemost
recentmonthisgivenbelow:
Therearenobeginningorendinginventories.
Required:
(a.)Computethecompanysmonthlybreakevenpointinunitsofproduct.
(b.)Whatwouldthecompanysmonthlynetoperatingincomebeifsalesincreasedby25%andthereis
nochangeintotalfixedexpenses?
(c.)Whatdollarsalesmustthecompanyachieveinordertoearnanetoperatingincomeof$50,000per
month?
(d.)Thecompanyhasdecidedtoautomateaportionofitsoperations.Thechangewillreducedirectlabor
costsperunitby40percent,butitwilldoublethecostsforfixedfactoryoverhead.Computethenew
breakevenpointinunits.
Level:MediumLO:4,5,6
Ans:(a.)Thecompanysincomestatementincontributionformatwouldbe:
Thebreakevenpointinunitswouldbe:
$72,000$16=4,500units.
(b.)6,000125%=7,500units
(c.)($72,000+$50,000) 0.40=$305,000
(d.)Directlaborcostsarepresently$10perunit($60,000 6,000units)andwilldecreaseby$4perunit
($10x40%).Therefore,thecompanysnewcoststructurewillbe:
(2x$30,000+$42,000) $20perunit=5,100units
c)