a)

Breakeven Point: 250,000/$20

12500
b)
Breakeven Point: 250000/$25
10000
c)
Breakeven Point: 275000/$20
13750
3. High Low Method
High (October)
Low (May)
Change
Variable Rate=
Fixed Costs=

4. Income Statements
a)

Direct Materials

Direct Labor
Variable Factory Overhead
Fixed Factory Overhead

b)

Sales
Variable Costs:
Variable Cost of goods sold
Variable Operating Expenses
Total variable costs
Contribution Margin
Fixed Costs:
Fixed Factory Overhead
Fixed Operating expenses
Total Fixed Costs
Income from operations

Sales
Cost of Goods Sold

Gross Profit
Operating Expenses
Income from operations

Differenc

$6,000.00

Ending Inventory Costs

5. Budgets

Estimated units to be produced

x lbs./unit
Pounds required to meet production
Add: Anticipated Ending Inventory (pounds)

Less: Anticipated Beginning Inventory (poun

Materials to be purchased to meet productio
x cost/pound
Direct material purchases
6. Budgets

Projected sales (units)

Add: Desired ending inventory units
Less: Estimated beginning inventory units
Desired units to be produced

a)

nt: 250,000/$20

nt: 250000/$25

nt: 275000/$20

(October)

ble Rate=
Costs=

Repair and Mainte

$13,160
$9,000
$4,160

$9000=$3.20(1,40
4520
$4,520

Unit Cost of Produ

Variable Costing
$0.80

y Overhead
Overhead

$1.60
$1.90
$4.30

Artic Company
Variable Costing In
For the year ended

ble Costs:
ble Cost of goods sold
ble Operating Expenses
variable costs
ibution Margin
Costs:
Factory Overhead
Operating expenses
Fixed Costs
me from operations

of Goods Sold

Artic Company
Absorption Costing
For the year ended

ating Expenses
me from operations

(3,000 units at $2.00 per unit)=6,000

Dean Company
Direct Materials Pu
For the month of M

ated units to be produced

ds required to meet production

Anticipated Ending Inventory (pounds)

Anticipated Beginning Inventory (pounds)

ials to be purchased to meet production (pounds)
t/pound
t material purchases

Corbin Company
Production Budget
For the year of 20

cted sales (units)

Desired ending inventory units

Estimated beginning inventory units

ed units to be produced

Schedule of Cash

Cash Sales
Cash collected from past credit sales:
August
48000
September
64000
October
56000
November
40000
December
80000
Total Cash Collections

Molly Corp.

Cash Budget
For the months Oc

Estimated cash collected

Estimated cash payments:
Purchase of inventory
Operating Expenses
Purchase of equipment
Payment of dividends
Total estimated cash payments
Increase (Decrease)
Add: beginning cash balance

pair and Maintenance Costs

$4,160/1,300=
000=$3.20(1,400)+x

it Cost of Production

riable Costing

Absorption Costing
$0.80

$1.60
$1.90
$2.00
$6.30

ic Company
riable Costing Income Statement
r the year ended 20XX

ic Company
sorption Costing Income Statement
r the year ended 20XX

$51,600.00
$15,000.00

$30,000.00
$20,000.00

an Company
ect Materials Purchases Budget
r the month of March

rbin Company
oduction Budget
r the year of 20XX

4,000
4
16,000
9,600
25,600
7,200
18,400
$3.00
$55,200.00

6,000
800
6,800
600
6,200

hedule of Cash Collections

October
November
$
14,000.00 $
10,000.00
$
$
$

4,800.00
19,200.00 $
33,600.00 $
$

6,400.00
16,800.00
24,000.00

71,600.00 $

57,200.00

lly Corp.

sh Budget
r the months October, November, and December
October
November
$
71,600.00 $
57,200.00
$
$

8,500.00 $
39,000.00 $
$

10,000.00
39,000.00
17,000.00

$
$
$

47,500.00 $
24,100.00 -$
4,000.00

66,000.00
8,800.00

Machine Hours
2,700
1,400
1,300
$3.20 per machine hour

$144,000.00

$66,600.00
$77,400.00

$50,000.00
$27,400.00

$
$

144,000.00
75,600.00

$
$
$

68,400.00
35,000.00
33,400.00

December
$
20,000.00

$
$
$
$

5,600.00
12,000.00
48,000.00
85,600.00

December
$
85,600.00
$
$

17,500.00
39,000.00

$
$
$

26,000.00
82,500.00
3,100.00