Meriden Company has a unit selling price of $600

Meriden Company has a unit selling price of $600, variable costs per unit of $300, and fixed costs of $236,400.

Compute the break-even point in units using the mathematical equation.

Break-even point units

Brief Exercise 18-10

For Turgo Company, variable costs are 55% of sales, and fixed costs are $176,600. Management’s net income goal is $137,860.

Compute the required sales in dollars needed to achieve management’s target net income of $137,860.

Required sales

$

Brief Exercise 18-11

For Kozy Company, actual sales are $1,120,000 and break-even sales are $705,600.

Compute the margin of safety in dollars and the margin of safety ratio.

Margin of safety

$

Margin of safety ratio

%

Brief Exercise 19-16

Montana Company produces basketballs. It incurred the following costs during the year.

Direct materials $14,150

Direct labor $25,515

Fixed manufacturing overhead $9,649

Variable manufacturing overhead $32,249

Selling costs $21,232

What are the total product costs for the company under variable costing?

Total product costs

$

Exercise 19-17

Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.

Variable Cost per Unit

Direct materials $7.88

Direct labor $2.57

Variable manufacturing overhead $6.04

Variable selling and administrative expenses $4.10

Fixed Costs per Year

Fixed manufacturing overhead $247,604

Fixed selling and administrative expenses $252,105

Polk Company sells the fishing lures for $26.25. During 2012, the company sold 81,000 lures and produced 95,600 lures.

(a)

Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)

Manufacturing cost per unit

$

(b)

Prepare a variable costing income statement for 2012.

POLK COMPANY

Income Statement

For the Year Ended December 31, 2012

Variable Costing

$

$

$

(c)

Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)

Manufacturing cost per unit

$

(d)

Prepare an absorption costing income statement for 2012.

POLK COMPANY

Income Statement

For the Year Ended December 31, 2012

Absorption Costing

$

$

Brief Exercise 21-1

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $311,800 budget; $325,800 actual.

Prepare a static budget report for the quarter.

MARIS COMPANY

Sales Budget Report

For the Quarter Ended March 31, 2012

Product Line Budget Actual Difference

Garden-Tools

$

$

$

Brief Exercise 21-4

Gundy Company expects to produce 1,242,960 units of Product XX in 2012. Monthly production is expected to range from 72,100 to 112,520 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $2.

Prepare a flexible manufacturing budget for the relevant range value using 20,210 unit increments. (List variable costs before fixed costs.)

GUNDY COMPANY

Monthly Flexible Manufacturing Budget

For the Year 2012

$

$

$

$Description / Instructions: Complete the following in WileyPLUS: *Brief Exercise 18-8 *Brief Exercise 18-10 *Brief Exercise 18-11 *Brief Exercise 19-16 *Exercise 19-17 *Brief Exercise 21-1 *Brief Exercise 21-4