Student Name: Team Phoenix

Class:
Problem 1-22A
ALDEN COMPANY
Expenses

Quarter
Year 1-1st
2nd
3rd
4th
Year 2-1st
2nd
3rd
4th
Totals

Units Sold
(X) (000)
16,000
18,000
23,000
19,000
17,000
20,000
25,000
22,000
160,000

Units
Sold
High activity level
Low activity level
Change

25,000
16,000
9,000
Correct!

Variable cost per unit

$
$

Shipping
(Y) Expense
160,000
175,000
217,000
180,000
170,000
185,000
232,000
208,000
1,527,000

Shipping
Expense
232,000
160,000
72,000
Correct!

8
Correct!

Fixed cost element:

Total shipping expense at high activity level
Less variable element
Fixed cost element
Cost formula:

$
$

232,000
200,000
32,000

<--Correct!
<--Correct!
<--Correct!

Y=$32000+$8X

ALDEN COMPANY
Budgeted Contribution Format Income Statement
For the First Quarter, Year 3
Sales
Variable expenses:
Cost of goods sold
Shipping expense
Sales commission
Total variable expenses
Contribution margin
Fixed expenses:

$
$

1,050,000

420,000
168,000
52,500
640,500
409,500

Shipping expense
Advertising expense
Administrative salaries
Depreciation expense
Total fixed expenses
Net operating income

32,000
170,000
80,000
50,000
$

332,000
77,500
Correct!

Student Name: Team Phoenix

Class:
Problem 02-24A
PACIFIC MANUFACTURING COMPANY
Computations
1a.
Estimated total manufacturing overhead cost
Estimated total amount of the allocation base
Predetermined overhead rate
1b.
Actual manufacturing overhead costs:
Insurance, factory
Depreciation of equipment
Indirect labor
Property taxes
Maintenance
Rent, building
Total actual costs
Applied manufacturing overhead costs
Underapplied overhead

2.
PACIFIC MANUFACTURING COMPANY
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning
Add: purchases of raw materials
Total raw materials available
Deduct: raw materials inventory, ending
Raw materials used in production
Direct labor
Manufacturing overhead applied to work in process
Total manufacturing costs
Add: Work in process, beginning
Deduct: Work in process, ending
Cost of goods manufactured

Student Name: Team Phoenix

Class:
Problem 02-24A

3.
Unadjusted cost of goods sold:
Finished goods inventory, beginning
Add: Cost of goods manufactured
Goods available for sale
Deduct: Finished goods inventory, ending
Cost of goods sold

4.
Direct materials
Direct labor
Overhead applied
Total manufacturing cost
Price to customer

5.
The amount of overhead cost in Work in Process was:
Direct labor cost
Overhead rate
Work in process overhead cost
The amount of direct materials cost in Work in Process was:
Total ending work in process
Deduct:
Direct labor
Manufacturing overhead
Direct materials
The completed schedule of costs in Work in Process was:
Direct materials
Direct labor
Manufacturing overhead
Work in process inventory

C MANUFACTURING COMPANY
Computations
$
$

126,000
84,000
150%
Correct!

7,000
18,000
42,000
9,000
11,000
36,000
123,000
126,000
3,000
Correct!

PACIFIC MANUFACTURING COMPANY

Schedule of Cost of Goods Manufactured

21,000
133,000
154,000
16,000
$

138,000
80,000
120,000
338,000
44,000
382,000
40,000
342,000
Correct!

$
$

68,000
342,000
410,000
60,000
350,000
Correct!

3,200
4,200
6,300
13,700
19,180
Correct!

s:
$
$

8,000
150%
12,000
Correct!

ss was:

40,000

20,000
20,000
Correct!

8,000
12,000

was:
$

20,000
8,000
12,000
40,000
Correct!

<--Correct!
<--Correct!

Student Name: Team Phoenix

Class:
Problem 2-25A
3.
SOUTHWORTH COMPANY
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning
Add: Purchases of raw materials
Total raw materials avaliable
Deduct: Raw materials inventory, ending
Materials used in production
Direct labor

18,000
142,000
160,000
10,000
$

Manufacturing overhead applied to work in process

Total manufacturing costs
Add: Work in process, beginning
Deduct: Work in process, ending
Cost of goods manufactured

4.
SOUTHWORTH COMPANY
Schedule of Cost of Goods Sold
Finished good inventory, beginning
Add: Cost of goods manufactured
Cost of goods avaliable for sale
Deduct: Finished goods inventory, ending
Unadjusted cost of goods sold
Add: Underapplied overhead
Adjusted cost of goods sold

35,000
590,000
625,000
25,000
600,000
3,000
603,000
Correct!

150,000
216,000
240,000
606,000
24,000
630,000
40,000
590,000
Correct!

Student Name: Team Phoenix

Class:
Problem 2-25A

5.
SOUTHWORTH COMPANY
Income Statement
Sales
Cost of goods sold
Gross Margin
Selling and Admin expenses
Salaries expense
Depreciation expense
Rental Expense
Miscellaneous
Advertising Expense
Net operating income

145,000
5,000
18,000
17,000
130,000
$

6.
SOUTHWORTH COMPANY
Price per Unit
Direct materials
Direct labor
Manufacturing overhead cost applied
Total manufacturing cost
Add markup
Total billed price of job 218

Price per unit

3,600
4,400
5,760
13,760
175%
24,080
Correct!
48.16
Correct!

1,000,000
603,000
397,000

315,000
82,000
Correct!