3. (TCO E) Topple Company produces a single p

3. (TCO E) Topple Company produces a single p

3. (TCO E) Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year is presented below: Units in beginning inventory 0Units produced 9,000Units sold 7,000Sales $100,000Less cost of goods sold:Beginning inventory 0Add cost of goods manufactured 54,000Goods available for sale 54,000Less ending inventory 12,000Cost of goods sold 42,000Gross margin 58,000Less selling and admin. expenses 28,000Net operating income $30,000Variable manufacturing costs are $4 per unit. Fixed factory overhead totals $18,000 for the year. This overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold. Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements. (Points : 30)4. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just-completed year.Sales 1,150Raw materials inventory, beginning 15Raw materials inventory, ending 40Purchases of raw materials 150Direct labor 250Manufacturing overhead 300Administrative expenses 500Selling expenses 300Work in process inventory, beginning 100Work in process inventory, ending 150Finished goods inventory, beginning 80Finished goods inventory, ending 120Use the above data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated? (Points : 25)Page 31. (TCO F) Carter Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.Work in process, beginning:Units in beginning work-in-process inventory 400Materials costs $6,900Conversion costs $2,500Percentage complete for materials 80%Percentage complete for conversion 15%Units started into production during the month 6,000Units transferred to the next department during the month 5,800Materials costs added during the month $112,500Conversion costs added during the month $210,300Ending work in process:Units in ending work-in-process inventory 1,400Percentage complete for materials 70%Percentage complete for conversion 40%Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department. (Points : 25)2. (TCO G) (Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $375,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of $50,000 at the end of 10 years. The machinery will also need a $35,000 overhaul at the end of Year 6. A $40,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $85,000 per year for each of the 10 years. Axillars discount rate is 16%. Required:(a) What is the net present value of this investment opportunity?(b) Based on your answer to (a) above, should Axillar go ahead with the new conditioning shampoo? (Points : 35)3. (TCO B) Madlem, Inc., produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $86.40 per unit. The companys fixed expense is $720,384 per month.Required:Determine the monthly break-even in either unit or total dollar sales. Show your work! (Points : 25)


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