[The following information applies to the questions displayed below.]Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separatefactories and markets them through different channels. They have no shared costs. This year, the company sold 40,000units of each product. Income statements for each product follow.SalesVariable costsContribution marginFixed costsIncomeCarvings$ 720,000576,000Mementos$ 720,000144,000144,00034,000$110,000576,000466,000$ 110,0003. Assume that the company expects sales of each product to increase to 54,000 units next year with no change in unit selling price.Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round"per unit" answers to 2 decimal places.)Contribution marginIncome (loss)HENNA COMPANYContribution Margin Income StatementCarvingsMementosUnitsTotal$ Per unitTotal$ Per unitTotal

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Fixed costs Income (loss) Carvings $ 863,900 604,730 259, 170 116,170 $ 143,000 $ 143,000 2. Assume that the company expects sales of each product to decline to 36,000 units next year with no change in uni selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each the two products). (Round "per unit" answers to 2 decimal places.) Units Mementos $ 863,900 86,390 777,510 634,510 HENNA COMPANY Contribution Margin Income Statement Carvings 36,000 36,000 36,000 $ Per unit 69 $ Total 0 0 Mementos $ Per unit $ $ EA Total 0 0 0 $ HA $ Total 0 0 0…
! Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 45,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 787,500 551,250 236,250 111,250 Mementos $ 787,500 78,750 708,750 583,750 $ 125,000 $ 125,000 2. Assume that the company expects sales of each product to decline to 28,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total Sales 28,000 $ 0 $ 0…
! Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 51,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 821,100 492,660 328,440 187,440 Sales Variable cost Contribution margin Fixed costs Income (loss) Mementos $ 821,100 82,110 738,990 597,990 $ 141,000 $ 141,000 2. Assume that the company expects sales of each product to decline to 34,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Units HENNA COMPANY Contribution Margin Income Statement Carvings 34,000…
Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 46,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Mementos $ 800,400 160,080 640,320 512,320 $ 128,000 $ 128,000 Fixed costs Sales Variable cost Carvings $ 800,400 640,320 160,080 32,080 3. Assume that the company expects sales of each product to increase to 60,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit $ $ Total 0 0 0 Mementos $ Per unit $ $ Total 0 $ 0 0 $ Total 0 0 0 0
Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Contribution margin Carvings $ 2,000,000 1,600,000 400,000 125,000 $ 275,000 2. Assume that the company expects sales of each product to decline to 30,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). Income (loss) Mementos $ 2,000,000 250,000 1,750,000 1,475,000 $ 275,000 Units HENNA Company Contribution Margin Income Statement Carvings $ Per unit Total Mementos $ Per unit Total Total
Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 46,000 units of each product. Income statements for each product follow. Carvings Mementos Sales Variable costs Fixed costs Income $ 800,400 640,320 $ 800,400 160,080 Contribution margin 160,080 32,080 640,320 512,320 $ 128,000 $ 128,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Contribution Margin Ratio PRODUCT CARVINGS Numerator: 1 Denominator: Contribution margin / Sales Break-Even Point in Dollars Numerator: Total fixed costs Contribution margin ratio 0 Denominator: Sales = Break-even point in dollars 0 PRODUCT MEMENTOS Contribution Margin Ratio Contribution margin ratio 0…
Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income 3. Assume that the company expects sales of each product to increase to 67,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Sales Variable cost Contribution margin Fixed costs Income (loss) Mementos $ 863,900 Carvings $ 863,900 604,730 259, 170 116,170 86,390 777,510 634,510 $ 143,000 $ 143,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units 67,000…
Blossom Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income (a) Tingler Shocker Stunner $296,000 $504,000 $200,000 145.000 190,000 151,000 314,000 114,840 225,160 $36,160 $88,840 Net income Fixed expenses consist of $290,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler). $79.000 (Shocker), and $34,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Compute current net income for Blossom Company. 135,000 65,000 92,000 $(27,000)
Use the information below to answer the following question(s). Franscioso Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $1.15 Manufacturing overhead $0.25 Selling costs $1.85 Annual fixed costs $110,000 The Franscioso Company contribution margin ratio is O A. 0.702:1. O B. 1.425:1. O C. 0.298:1. O D. 1.102:1. O E. 0.637:1.
[The following information applies to the questions displayed below. Ramort Company reports the following for its single product. Ramort produced and sold 21,600 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute gross profit under absorption costing. RAMORT COMPANY Gross Profit (Absorption Costing) Sales Cost of goods sold Gross profit $ 1,814,400 21,600

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