Practice Problems for Exam 1

Practice Problems for Exam 1 - Practice Problems for Exam 1...

This preview shows pages 1–2. Sign up to view the full content.

Practice Problems for Exam 1 1. During its first year of operations, Teddy Company paid \$4,000 for direct materials and \$8,500 for production workers’ wages. Lease payments and utilities on the production facilities amounted to \$7,500 while general, selling, and admin expenses totaled \$3,000. The company produced 5,000 units and sold 4,000 units at a price of \$8 a unit. What is the amount of cost of goods sold for the first year? a. \$20,000 b. \$18,400 c. \$16,000 d. \$ 4,000 e. None of the above 2. Peterson Manufacturing Company has sales of \$20,000, variable manufacturing costs of \$8,000, fixed manufacturing costs of \$2,000, variable selling and admin costs of \$4,000 and fixed and selling and admin costs of \$3,000. The company’s contribution margin per unit is \$8. What is the selling price per unit? 3. Trinkle Company sells two kinds of mainframe computer power supplies. The company projected the following cost information for the two products: Standard Supply Heavy-Duty Supply Sales price per unit \$250 \$120 Variable cost per unit \$110 \$ 50 Units made & sold 7,000 3,000 Assuming total fixed costs are \$214,200. Based on this information, what is the combined number of units of the two products that would be required to break even?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern