ACCT 311 TAKE HOME TEST #2 1. A.

Units transferred to the next department Ending work in process: Materials: 3,000 units * 100% Conversion: 3,000 units * 1/3 Equivalent units of production b. Cost of beginning work in process inventory Cost added during the period Total cost Equivalent units of production Cost per equivalent unit Units completed and transferred out: Unites transferred to the next department Cost per equivalent unit Cost of units completed and transferred out c. Ending work in process inventory: Cost per equivalent unit Cost of ending work in process inventory 2. a. b. c. d. e. f. Unit CM= $29.00 CM Ratio = 58% Total fixed expenses = $110,000 Margin of safety = 81.03% Increase in units sold 4,000 x $29 (contribution margin per unit) = $116,000 New break-even in dollars = $113,6000.532 = $213,534 Materials 7,000 3,00 10,000 Materials $600 2,560 $3,160 10,000 $0.316 Materials 7,000 $0.316 $2,212 Materials 3,000 $0.316 $948 Conversion 7,000 1,000 8,000 Conversion $100 1,500 $1,600 8,000 $0.200 Conversion 7,000 $0.200 $1,400 Conversion 1,000 $0.200 $200 Total $3,612 Total $1,148

Ire Corp 9,845, 10.89 Jaderton 20.46, 36.47, 74,000 units, 69,800 units Nando Company - $316,000, $101,400 Seidl Corp 10,000, $121,000 Knepp Corp - $182,000, $195,000