ACCT 505 Course Great Wisdom / tutorialrank.com ACCT 505 Course Great Wisdom / tutorialrank.com | Page 19

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 weightedaverage method of accounting for units and costs.
3. Question :
(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?
4. Question :