University Of California, San Diego Operations And Supply Chain Management Assignment Help - Midterm Exam

Question - 1.
1.(TCO A) The following data (in thousands of dollars) have been taken from the
accounting records of Larop Corporation for the just-completed year:
Sales................................................................................. $910
Purchases of raw materials................................................ $225
Direct labor....................................................................... $245
Manufacturing overhead.................................................... $265
Administrative expenses.................................................... $150
Selling expenses................................................................ $140
Raw materials inventory, beginning..................................... ...Read More $15
Raw materials inventory, ending......................................... $45
Work-in-process inventory, beginning................................. $20
Work-in-process inventory, ending..................................... $55
Finished goods inventory, beginning................................... $100
Finished goods inventory, ending....................................... $135
Required:Prepare a Schedule of Cost of Goods Manufactured in the text box below.
(Points : 15)

2.(TCO F) The Illinois Company manufactures a product that goes through three processing
departments. Information relating to activity in the first department during June is given
below.
Percentage Completed
Units Materials Conversion
Work in process, June 1 150,000 75% 55%
Work in process, Jun 30 145,000 85% 75%
The department started 475,000 units into production during the month and transferred
480,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June,
assuming that the company uses the weighted-average method of accounting for units and
costs.
(Points : 20)

3.(TCO B) A tile manufacturer has supplied the following data:
Boxes of tile produced and sold 625,000
Sales revenue $2,975,000
Variable manufacturing expense $1,720,000
Fixed manufacturing expense $790,000
Variable selling and admin expense $152,000
Fixed selling and admin expense $133,000
Net operating income $180,000

Required:
a. Calculate the company's unit contribution margin.
b. Calculate the company's unit contribution ratio.
c. If the company increases its unit sales volume by 5% without increasing its fixed
expenses, what would the company's net operating income be?
(Points : 25)

4.

(TCO E) Lehne Company, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price $ 125
Units in beginning inventory 600
Units oroduced 3000
Units sold 3500
Units in ending inventory 100
Variable costs per unit:
Direct materials $ 15
Direct labor $ 50
Variable manufacturing overhead $ 8
Variable selling and admin $ 12
Fixed costs:
Fixed manufacturing overhead $ 75,000
Fixed selling and admin $ 20,000
The company produces the same number of units every month, although the sales in
units vary from month to month. The company's variable costs per unit and total fixed
costs have been constant from month to month.
Required:

a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare an income statement for the month using the variable costing method.
d. Prepare an income statement for the month using the absorption costing method.
(Points : 30)

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