There are four solutions within this tutorial highlighted in bold~

1. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just completed year:
Sales.................................................................................
$870
Purchases of raw materials................................................
$190
Direct labor.......................................................................
$200
Manufacturing overhead....................................................
$230
Administrative expenses....................................................
$150
Selling expenses................................................................
$140
Raw materials inventory, beginning.....................................
$10
Raw materials inventory, ending.........................................
 

$40
Work in process inventory, beginning.................................
 
$20
 
Work in process inventory, ending.....................................
 
$50
 
Finished goods inventory, beginning...................................
 
$90
 
Finished goods inventory, ending.......................................
$130
 
Required: Prepare a Schedule of Cost of Goods Manufactured in the text box below.
 
2. (TCO F) The Illinois Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below:
 
Percent completed
 Units Materials Conversion
 Work in process, June 1 150,000 75% 55%
 Work in process, Jun 30 145,000 85% 75%
 
The department started 475,000 units into production during the month and transferred 480,000 completed units to the next department.
 
REQUIRED: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.
 
3. (TCO B) A cement manufacturer has supplied the following data:
 
Tons of cement produced and sold 220,000
 
Sales revenue $924,000
 
Variable manufacturing expense $297,000
 
Fixed manufacturing expense $280,000
 
Variable selling and admin expense $165,000
 
Fixed selling and admin expense $82,000
 
Net operating income $100,000
 
Required:
 
a. Calculate the company's unit contribution margin
 
b. Calculate the company's unit contribution ratio
 
c. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?

4. (TCO E) Lehne Company, which has only one product, has provided the following data concerning its most recent month of operations:
 
Selling Price $ 112
 
Units in beginning Inventory 500
 Units Produced 2600
 Units sold 3000
 Units in ending Inventory 100
 
Variable Costs per unit:
Direct materials $ 13
 Direct labor $ 49
 Variable manufacturing overhead $ 6
 Variable selling and admin $ 10
 
Fixed Costs:
Fixed manufacturing overhead $ 80,600
 Fixed selling and admin $ 15,000
 
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
 

Required:
 

a. What is the unit product cost for the month under variable costing?
 b. What is the unit product cost for the month under absorption costing?
 c. Prepare an income statement for the month using the variable costing method.
 d. Prepare an income statement for the month using the absorption costing method.