Cost Accounting 303-01 Fall 2017 Quiz: Chapter 9 Quiz Time Remaining: 01:05:14 S
ID: 2580572 • Letter: C
Question
Cost Accounting 303-01 Fall 2017 Quiz: Chapter 9 Quiz Time Remaining: 01:05:14 Sumit Qur This Question: 10 pts 2015(0complete) This Quiz 50 pts possbie Vena, a loading fim in sur ndustry, producoem digialinngrad0a for he communiatos and dadlense mankDcnber 31. 2013 Vona seling price of $26 per unit. The folowing information also relates to 2013 (assume oonstant unit costs and no varianoss of any kind) EE (Cick the icon to vow the 2013 data) Read the requirements Deta Table Requirement 1. How many intograted cirouits did Vena produce in 2013 Vera produced urls in 2013. Requirement 2. Calculate the breakermen point (number of ICs soid) in 2013 under: (a) Vrable oing and() Absorption costnyg a Calculate the breakeven point in units under variable costing Inventory, January 1, 2013 Inventory, December 31,2013 Flwed manufacturing costs: xd administrative costs Direct mateials costs Direct labor costs 35,800 iCs 22,800 IC 1,400,000 821,70 7 per IC t per IC Breakeven point Print Done b. Caloulate the breakeven point in units under absorption oosting Fint, select the formula and enber the amounts. Then solve for Q in the next stop (Assume 1" is the breakarven point in unis absorption cooting 1/ Choose from any list or enter any number in the input fields and then continue to the next questionExplanation / Answer
Requirement 1
Units produced in 2013 = Closing Inventory + Inventory Sold - Opening Inventory
......................................= 22,600 + 213,300 - 35,900
......................................= 200,000
Vena produced 200,000 units in 2013
Requirement 2:
(a) Total fixed expenses = $1,400,000 + $821,700
.......................................= $2,221,700
Contribution margin per unit = $26 - $7 - $6
..............................................= $13
Break even point in units = Total fixed expenses / Contribution margin per unit
.........................................= $2,221,700 / $13
.........................................= 170,900 units
(b)
Quantity = Total Fixed Cost + [Fixed Manufacturing Cost Rate x (Breakeven sales in units - Units Produced)] / Contribution Margin per unit
Q = $2,221,700 + [$7 x (Q - 200,000)] / $13
Q = $2,221,700 + [$7Q - $1,400,000] / $13
Q = $821,700 + $7Q / $13
$13Q = $821,700 + $7Q
Q = $821,700 / $6
Q = 136,950
Q ( the breakeven point) under absorption costing is 136,950 units
Requirement 3:
a. Breakeven Point = $2,221,700 / ($13 - $3)
...............................= 222,170 units
b.
Q = $2,221,700 + [$7 x (Q - 200,000)] / $10
Q = $2,221,700 + [$7Q - $1,400,000] / $10
Q = $821,700 + $7Q / $10
$10Q = $821,700 + $7Q
Q = $821,700 / $3
Q = 273,900 units
Total fixed expenses / Contribution margin per unit = Breakeven point under variable costing $2,221,700 / $13 = 170900