Managerial accounting and cost concepts ppt

Southeastern University Managerial Accounting and Cost Concepts PPT
Subject
Business Finance

School
Southeastern University

Question Description
Greetings ,,

Help with Managerial accounting homework

see attachment , I have attached questions needs to be submitted within 2 days

Guided Example Chapter 1 – Managerial Accounting and Cost Concepts Click on links Exercise 1-4 Fixed and Variable Cost Behavior Exercise 1-4 Exercise 1-6 Traditional and Contribution Format Income Statements Exercise 1-6 Exercise 1-11 Cost Behavior; Contribution Format Income Statement Exercise 1-11 Exercise 1-15 Traditional and Contribution Format Income Statements Exercise 1-15 Guided Example Exercise 1-4 Guided Example Java Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,500 and the variable cost per cup of coffee served is $0.19. Required: Estimate the total costs and average cost per cup of coffee at the indicated levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest cent. Cups Cups of of Coffee Coffee Served Served in in aa Week Week 3,700 3,800 3,900 Fixed cost Variable cost Total cost Average cost per cup of coffee served [LO4] Guided Example Exercise 1-6 Guided Example Otsego, Inc., is a merchandiser that provided the following information: Number of units sold 12,000 Selling price per unit $25 Variable selling expense per unit Variable administrative expense per unit $2.50 $2 Total fixed selling expense $16,000 Total fixed administrative expense $17,000 Merchandise inventory, beginning balance $25,000 Merchandise inventory, ending balance $18,000 Merchandise purchases $101,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. [LO6] Guided Example Requirement 1: Prepare a traditional income statement. Otsego, Inc. Traditional Income Statement Sales ($25 per unit X 12,000 units) $46,000 Cost of goods sold ($25,000 + 101,000 - 18,000) Gross margin Selling and administrative expenses: Selling expenses (($2.50 per unit X 12,000 units) + $16,000) Administrative expenses (($2 per unit X 12,000 units) + $17,000) Net operating income Guided Example Requirement 2: Prepare a contribution format income statement. Otsego, Inc. Contribution Format Income Statement Sales ($25 per unit X 12,000 units) Variable expenses: Cost of goods sold ($25,000 + 101,000 - 18,000) Selling expenses ($2.50 per unit X 12,000 units) Administrative expenses ($2 per unit X 12,000 units) Contribution margin Fixed expenses: Selling expenses Administrative expenses Net operating income Guided Example Exercise 1-11 Guided Example Hough Company manufactures and sells a single product. A partially completed schedule of the company’s total and per unit costs over a relevant range of 80,000 to 120,000 units produced and sold each year is given below: Total costs: Variable costs Fixed costs Total costs Cost per unit: Variable cost Fixed cost Total cost per unit Units produced and sold 80,000 100,000 120,000 $240,000 320,000 $560,000 Required: 1. Complete the schedule of the company’s total and unit costs. 2. Assume that the company produces and sells 110,000 units during the year at the selling price of $6.50 per unit. Prepare a contribution format income statement for the year. [LO4, LO6] Guided Example Requirement 1: Complete the schedule of total costs and unit costs. Units produced and sold 80,000 100,000 120,000 Total costs: Variable costs Fixed costs Total costs Cost per unit: Variable cost Fixed cost Total cost per unit $240,000 320,000 $560,000 Guided Example Requirement 2: Assume that the company produces and sells 110,000 units during the year at the selling price of $6.50 per unit. Prepare a contribution format income statement for the year. Hough Company Contribution Format Income Statement For the year Sales (110,000 units × $6.50 per unit) Variable expenses (110,000 units × $3.00 per unit) Contribution margin Fixed expenses Net operating income Guided Example Exercise 1-15 Guided Example Maui Mike’s is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31: Amount Total sales revenue Selling price per unit $750,000 $500 Variable selling expense per unit $40 Variable administrative expense per unit $15 Total fixed selling expense $125,000 Total fixed administrative expense $100,000 Merchandise inventory, beginning balance $65,000 Merchandise inventory, ending balance $85,000 Merchandise purchases $295,000 Required: 1. Prepare a traditional income statement for the quarter ended May 31. 2. Prepare a contribution format income statement for the quarter ended May 31. 3. What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter? (State this figure in a single dollar amount per surfboard.) [LO6] Guided Example Requirement 1: Prepare a traditional income statement. Maui Mike’s Traditional Income Statement Sales ($750,000/$500 = 1,500 units) Cost of goods sold ($65,000 + 295,000 - 85,000) Gross margin Selling and administrative expenses: Selling expenses (($40 per unit X 1,500 units) + $125,000) Administrative expenses (($15 per unit X 1,500 units) + $100,000) Net operating income Guided Example Requirement 3: Requirement 2: What was the contribution toward fixed expenses and profits for each surfboard sold Prepare a contribution income statement. during the quarter? (State this figure in aformat single dollar amount per surfboard.) Maui Mike’s Contribution Format Income Statement Sales ($750,000/$500 = 1,500 units) Variable expenses: Cost of goods sold Selling expenses ($40 per unit X 1,500 units) Administrative expenses ($15 per unit X 1,500 units) Contribution margin Fixed expenses Selling expenses Administrative expenses Net operating income ...