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Set 2
1. (TCO C) Madlem, Inc., produces and sells a single product whose
selling price is $120.00 per unit and whose variable expense is $46.20
per unit. The company's fixed expense is $405,900 per month.
Required: Determine the monthly breakeven in either unit or total dollar
sales. Show your work! (Points : 25)
Question 2.2. (TCO B) Industrial Supply Corporation uses the weighted-
average method in its process costing system. Data concerning the first
processing department for the most recent month are listed below.
Work in process, beginning:
Units in beginning work in process inventory 400
Materials costs $6,900
Conversion costs $2,500
Percent complete for materials 80%
Percent complete for conversion 15%
Units started into production during the month 6,000
Units transferred to the next department during the month 5,200
Materials costs added during the month $112,500
Conversion costs added during the month $210,300
Ending work in process:
Units in ending work-in-process inventory 1,200
Percentage complete for materials 75%
Percentage complete for conversion 30%
Required: Calculate the equivalent units for conversion for the month in
the first processing department. (Points : 25)
Question 1.1. (TCO D) The following absorption costing income
statement and additional data are available from the accounting records
of Bernon Co. for the month ended May 31, XXXX. During the
accounting period, 17,000 units were manufactured and sold at a price of
$60 per unit. There were no beginning inventories.
Bernon Co.
Absorption Costing Income Statement
for the Month Ended May 31, XXXX