6. Minist Corporation sells a single product for $15 per unit. Last year, the co

Question

6. Minist Corporation sells a single product for $15 per unit. Last year, the company's sales revenue was $225,000 and its net operating income was $18,000. If fixed expenses totaled $72,000 for the year, the break-even point in unit sales was (choose the closest answer): A. 15,000 followination foar questions 7-5 Sales Direct Labor Cost Raw Materials Purchased Selling Expense Ple data froms the just completed year are taken from the accounting reconds of Mason use the information below 5524,000 $70,000 $118,000 $140,000 563,000 Administrative Expense rverhcad Applied to Work in Actual Manufacturing Overhead Cost anufacturing $90,000 $80,000 Beginning of Year End of Year Inventories Raw Materials Work in Process Finished Goods 7,000$15,000 $5,000 $20,000 Additional information: For the year, the cost of goods manufactured totaled $275,000; the unadjusted cost of goods sold totaled $260,000. The company's overapplied or underapplied overhead is closed entirely to Cost of Goods Sold How much was $280,000 Company's the Company's adjusted Cost of Goods Sold at the end of the year

Explanation / Answer

Mason Company Inventories Beginning of Year End of the Year Raw Materials $                   7,000.00 $            15,000.00 Given Work-in-process $                 10,000.00 $               5,000.00 (As per Note 2) Finished Goods $                 20,000.00 $            35,000.00 (As per Note 3) Note: 1 Raw Material Used in Production Beginning Raw Material Inventory $               7,000.00 Add: Purchase of Raw Material $          118,000.00 Raw Material available for use $          125,000.00 Less: Ending Raw Material Inventory $          (15,000.00) Raw Material used in production $          110,000.00 Note: 2 Calculation of Beginning Inventory of Work-in-process Cost of Goods Manufactured $          275,000.00 Given Add: Closing Inventory $               5,000.00 Total $          280,000.00 Less: Direct Labor Cost $          (70,000.00) Manufacturing Overhead applied to Work-in-process $          (90,000.00) Raw material used in the Production $        (110,000.00) As per Note 1 Beginning Inventory of work-in-process $            10,000.00 Balance Note: 3 Calculation of Closing Inventory of finished Goods Beginning finished goods inventory $            20,000.00 Add: Cost of goods Manufactured $          275,000.00 Goods Available for Sale $          295,000.00 Less: Cost of Goods Sold $        (260,000.00) Given Ending Finished Goods $            35,000.00 Balance

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