Yoder Furniture Works----the question is a the very end, I just provided support
ID: 2427363 • Letter: Y
Question
Yoder Furniture Works----the question is a the very end, I just provided supporting documents.
Yoder Furniture Works manufactures a high-quality, wooden rocker-recliner. A key differentiating feature of this rocker-recliner is the ease with which a hand-operated lever raises and lowers the footrest. Yoder left the prototype phase and began commercial production on January 1, 2015. A retired accountant of the founder, Steve Yoder, maintained the accounting records on a temporary basis through January 31, 2015. Now, Yoder is searching for a replacement. Potential candidates are being asked to evaluate the information from the first month of commercial operation as follows:
Cost information
Administrative expenses
$22,000
Advertising expenses
11,700
Cash account balance, January 1, 2015
0
Depreciation on production equipment and factory building
2,000
Depreciation on administrative offices
750
Insurance on production equipment and factory building
1,700
Administrative supplies expense
550
Property taxes on production equipment and factory building
425
Sales commissions
18,700
Utilities for production equipment and factory building
1,650
Wages paid to production workers
67,800
Direct materials inventory, January 1, 2015
0
Direct materials inventory, January 31, 2015
0
Direct materials purchases during January 2015
83,400
Work in process inventory, January 1, 2015
0
Work in process inventory, January 31, 2015
0
Finished goods inventory, January 1, 2015
0
Production and sales information
Units produced during January 2015
600
Units sold during January 2015
490
Sales price per unit
$500
Based on the above information, answer the following questions:
Classify costs as either product costs or period costs using the format shown below. Enter the dollar amount for each cost in the appropriate column and total each classification.
Item
Product Costs
Period Costs
Direct Materials
Direct Labor
Manufacturing Overhead
Admin Expenses
22,000
Advertising Exp
11,700
Depreciation Equipment and Building
2,000
Depreciation on Admin Offices
750.00
Insurance on production Equip and Fac. Building
1,700
Administrative Supplies Exp
550.00
Property taxes on production Equipment and Factory Build.
425.00
Sales commissions
18,700
Utilities for production equipment and factory building
1,650.00
Wages paid to production workers
67,800
Direct materials purchases during January 2015
83,400.00
Total
83,400
67,800
5,775
53,700
Classify costs as either variable costs or fixed costs. Assume there are no mixed costs. Enter the dollar amount for each cost in the appropriate column and total each classification. Use the format shown below. Assume that Utilities for production equipment and factory building are a fixed cost
Item
Variable Costs
Fixed Costs
Total Costs
Admin Expenses
22,000
Advertising Exp
11,700
Depreciation Equipment and Building
2,000
Depreciation on Admin Offices
750.00
Insurance on production Equip and Fac. Building
1,700
Administrative Supplies Exp
550
Property taxes on production Equipment and Factory Build.
425
Sales commissions
18,700
Utilities for production equipment and factory building
1,650.00
Wages paid to production workers
67,800
Direct materials purchases during January 2015
83,400.00
Total
169,900
40,775.00
The ones below, I am having trouble with.
Determine the per-unit variable cost of a chair.
Determine the per-unit contribution margin and the contribution margin percentage.
Cost information
Administrative expenses
$22,000
Advertising expenses
11,700
Cash account balance, January 1, 2015
0
Depreciation on production equipment and factory building
2,000
Depreciation on administrative offices
750
Insurance on production equipment and factory building
1,700
Administrative supplies expense
550
Property taxes on production equipment and factory building
425
Sales commissions
18,700
Utilities for production equipment and factory building
1,650
Wages paid to production workers
67,800
Direct materials inventory, January 1, 2015
0
Direct materials inventory, January 31, 2015
0
Direct materials purchases during January 2015
83,400
Work in process inventory, January 1, 2015
0
Work in process inventory, January 31, 2015
0
Finished goods inventory, January 1, 2015
0
Production and sales information
Units produced during January 2015
600
Units sold during January 2015
490
Sales price per unit
$500
Explanation / Answer
Raw Marterial Used Direct materials inventory, January 1, 2015 0 Purchases During the Month 83400 Less: Direct materials inventory, January 31, 2015 0 Material Used for Production of Material 83400 No. Of Units Produced during the Month Work in process inventory, January 1, 2015 0 Units produced during January 2015 600 Less: Work in process inventory, January 31, 2015 0 No. Of Units Produced during the Month 600 Calculation of Variable Costs per Unit Raw Material Used ($83400 / 600 Units) 139.00 Wages Paid (67800 / 600 Units) 113.00 Sales Commission ($18700 / 490 (no of Units sold)) 38.16 Total Variable Cost per unit 290.16 Calculation of Per Unit Contribution Margin A. SP per Unit 500.00 B. Less: Variable Cost per Unit 290.16 C. Contribution (A-B) 209.84 Contribution Margin Ratio 41.97%
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