Review for Midterm

Review for midterm Note You must be able to answer calculations, make decisions under various alternative situation. Simply knowing the definition is not sufficient to clear up good grade. Chapter 1 Management functions Manufacturing prices Cost classifications Prepare Cost of goods Manufactured schedules/Cost of goods change commands Cost of goods exchange statements Calculate missing amounts from given information set Ethical issues Chapter 2 oddment between line of reasoning be and functioning cost systemCost flow in Job order costing (Cost accumulation and assignment by cost elements), including journal entries Be able to calculate applied manufacturing belt/under-over applied manufacturing overhead from given data, including adjustments of under-over applied overhead Chapter 3* Cost flow in process cost system Be able to prepare production cost report and its components Analyze drudgery cost report Compute missing data within the production cost report * still Weig hted average method Chapter 5 Know cost behavior, identify types of costs from given data set and why it is so important Relevant rangeApply High-low method to determine fixed/variable cost CVP Assumptions of CVP analysis Be able to prepare CVP income statement Compute Contribution margin, and contribution margin symmetry What is Break-even phase Be able to complete break-even analysis under different scenario Include Target web income with break-even analysis, Margin of safety Review problem 1. Temp Range Company prepared the following income statement for 2014 TEMP RANGE COMPANY Income Statement For the Year Ended December 31, 2014 gross sales (5,000 units)$200,000 Variable expenses 75,000Contribution margin125,000 placed expenses 83,200 Net income$ 41,800 Instructions Answer the following independent questions and show computations to support your answers. 1. What is the companys break-even point in units? 2. How many units would the company have had to sell to pee-pee a t arget net income of $33,000 in 2014? 3. If the company expects a 65% increase in sales volume in 2015, what would be the evaluate net income in 2015? 4. How much sales (in dollars) would the company have to generate in order to earn a target net income of $288,000 in 2015? 2 Job order costingSandro Clean uses a play order cost computeing system. On October 1, the company has a balance in put to work in wreak Inventory of $4,200 and two jobs in process Job No. R92, $1,600 and Job No. R93, $2,600. During October, a summary of source documents reveals the following ForMaterials Requisition SlipsLabor Time Tickets Job No. R92$ 2,200$ 7,100 Job No. R931,7004,100 Job No. R944,7003,300 Job No. R952,2005,100 General Use 1,800 2,000 $12,600$21,600 Sandro applies manufacturing overhead to jobs at an overhead rate of 90% of direct assiduity cost. Job No. R92 was completed during the month.Instructions (a)Prepare summary journal entries to record the requisition slips, clock time tickets , the assignment of manufacturing overhead to jobs, and the completion of Job No. R92. Show computations. (b)Answer the following questions. 1. What is the balance in Work in Process Inventory at October 31? 2. If Sandro incurred $13,000 of manufacturing overhead in addition to indirect labor and indirect materials, was overhead over- or underapplied in October and by how much? Cost of Goods Manufactured and Sold Selected account balances of Santana Manufacturing Company appear below for 2014Beginning of YearEnd of Year Finished Goods Inventory$15,000$ 17,000 Work In Process Inventory22,00021,000 Raw Materials Inventory13,00019,000 Sales380,000 Direct Labor43,000 Factory Supervisory Salaries17,000 Income Tax Expense32,000 Factory Insurance18,000 Raw Material Purchases93,000 Administrative Expenses12,000 Sales Returns and Allowances3,000 Factory Depreciation8,000 Indirect Labor14,000 Selling Expenses44,000 Instructions Using the above information for Santana Manufacturing Company, Pr epare Cost of goods sold statement. Support your answers with clearly identified computations.