Practice Problems for Exam 1

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

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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? a. $20 b. $50 c. $10 d. $25 e. None of the above 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 7,000 3,000 Assuming total fixed costs are $214,200. Based on this information, what is the
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This test prep was uploaded on 04/22/2008 for the course ACCT 2302 taught by Professor All during the Spring '08 term at Texas Tech.

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

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