8. What was Lewisburn's gross margin (or gross profit)? A) $103,000 B) $152,000 C) $268,000 D) $317,000 9. What was Lewisburn's operating income? 10. How much of the above would be considered period costs for Lewisburn Manufacturing? 11. Helmer Sporting Goods Company manufactured 100,000 units in 20X5 and reported the following costs:Sandpaper$ 32,000Leasing costs-plant$ 384,000Materials handling320,000Depreciation-equipment224,000Coolants & lubricants22,400Property taxes-equipment32,000Indirect manufacturing labor275,200Fire insurance-equipment16,000Direct manufacturing labor2,176,000Direct material purchases3,136,000Direct materials, 1/1/X5384,000Direct materials, 12/31/X5275,200Finished goods, 1/1/X5672,000Sales revenue12,800,000Finished goods, 12/31/X51,280,000Sales commissions640,000Work-in-process, 1/1/X596,000Sales salaries576,000Work-in-process, 12/31/X564,000Advertising costs480,000Administration costs800,000Required:a.What is the amount of direct materials used during 20X5?b.What manufacturing costs were added to WIP during 20X5?c.What is cost of goods manufactured for 20X5?d.What is cost of goods sold for 20X5?
12. Using the following information find the unknown amounts. Each set of information is an independent case.a) Direct MaterialsPurchases$ 128,000Beginning balance$ 40,000Ending balance$ 46,000Direct materials used?b) Work-in-process inventoryEnding balance$ 35,000Cost of goods manufactured$ 350,000Beginning balance$ 29,000Current manufacturing costs?c) Finished Goods inventoryCost of goods manufactured$ 212,000Ending balance$ 201,000Beginning balance$ 203,000Cost of goods sold?d) Operating incomeCost of goods sold$ 700,000Period costs$ 150,000Operating income$ 62,000Revenue?Direct materials usedCurrent mfr costs Cost of goods soldRevenueA) 122,000;356,000; 214,000; 912,000B) 122,000; 344,000; 310,000; 850,000C) 134,000; 356,000; 214,000; 762,000D) 134,000;344,000;310,000;912,000
Chapter 3Answer questions 1 through 3 using this information:Holly’s Ham Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs and $24,000 of fixed costs.1. Breakeven point in units is: ___________________________2. The number of hams that must be sold to achieve $75,000 of operating income is _______________________ hams3. Holly is considering purchasing one new roasting oven at a cost of $100,000, to be depreciated straight-line over ten (10) years. If she buys it, she will increase the selling price perunit by $2. Variable cost per unit will not increase. By how much will breakeven revenue increase if she buys the oven?$ ______________________Answer questions 4 and 5 using this information:Bush Manufacturing produces a single product that sells for $100.