F09-ReviewProb2a - Name_ ACCTG225A&CFall2009...

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Name _____________________ REVIEW QUESTION 2  (FROM Spring 2009) Instructions : please work this to hand November 17 (big class) in and be graded as a  starred problem. Also keep a copy for yourself since we will go over the solution in class  as part of our review for MT2. Question 2  (45 points) Foster Inc. is a manufacturing company that produces just one product.  Its income  statement for the month of April is presented below. Sales $456,000 Cost of goods sold 349,600 Gross margin $106,400 Selling and administrative expenses  110,900 Operating Loss $  (4,500)                 Additional information: Selling price  per unit $60 Variable costs  per unit : Direct materials $10 Direct labor $13 Variable manufacturing overhead $7 Variable selling and administrative $5 Beginning finished goods inventory 1,500 units Ending finished goods inventory    300 units Foster produces the same number of units every month, although sales in units vary  from month to month.  Their variable costs per unit and total fixed costs have been  constant from month to month and are expected to remain so if the foreseeable  future. Upon reviewing the income statement presented above, Samantha Brown, CEO, 
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This note was uploaded on 11/17/2009 for the course ACCTG 225 taught by Professor Adams during the Spring '08 term at University of Washington.

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F09-ReviewProb2a - Name_ ACCTG225A&CFall2009...

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