practice exam 2 problem key

practice exam 2 problem key - -50800 469900 1010100...

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file:keytest207s dgd: 04/07 Accounting 208 - Test 2 Problem Key for Spring 07 Problem 1 10 POINTS A. Absorption Costing Income Statement for 2004 Sales (52,000 x $20) 1040000 Less: COGS Beg F.G. Inv (5,000 x $11.35) 56750 + COGM (50,000 x $10.35) 517500 GAFS 574250 - End F.G. Inv (3000 x $10.35) -31050 543200 Gross Profit 496800 Less: Operating Expenses 59800 FS&A Exp 120000 179800 Net Income (Absorption) $317,000 B. Variable Costing Income Statement for 2006: 10 PT Sales (74000 x $20) 1480000 Less: VC Variable COGS Beg F. G Inv (2000 x $6.35) 12700 +COGM (80,000 x $6.35) 508000 GAFS 520700 -End F.G. Inv (8,000 x $6.35)
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Unformatted text preview: -50800 469900 1010100 Variable S&A (74000 x $1.15)-85100 Contribution Margin 925000 Less: Fixed Expenses FOH 200000 FS&A 120000 320000 Net Income (Variable) $605,000 C. Reconcile Year 2005: 5 points Variable Net Income $500,000 Plus: FOH Deferred in End F.G. Inv. (2000 x $2.00) 4000 Subtotal $504,000 Less: FOH Released from Beg F.G. Inv (3000 x $4)-12000 Net Income (Absorption) $492,000 D. Determine BEP in Units: 5 points FC + NI/unit CM (320,000 + 36,150)/$12.50 = 28492 units FC = FOH 200000 FSC 120000 320000 CM = SP 20-VC-Vprod 6.35-Vselling 1.15 7.5 Unit CM 12.5...
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This note was uploaded on 12/10/2011 for the course ACCT 208 taught by Professor Kingery during the Winter '08 term at University of Delaware.

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