Question

What are the calculation needed to find the answer? Thank you!

Fall-2019 5. Molina Corp. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports net income of $80,000 after taxes of 60%, what were total sales for the year? a. $450,000 b. $466,667 c. $500,000 d. $700,000 e. None of the above 6. D'Amico Inc. incurred total manufacturing costs of $500,000. Manufacturing overhead was $100,000. Conversion costs were 30% of total manufacturing costs and prime costs were 80% of total manufacturing costs. What is amount of direct materials incurred? a. $50,000 b. $300,000 c. $350,000 d. $400,000 e. None of the above Use the following information for the next 3 questions. Baril Ltd. uses process costing. Conversion costs are added continuously throughout the process and direct materials are added at the beginning. During February, Department B had a beginning inventory of 2,000 units, 40% complete. Department A transferred out 18,000 units during the month to Department B. 4,000 units were still 60% incomplete at the end of February in Department B. 7. Using FIFO process costing, the equivalent units for direct materials for the month in Department B were a. 15,600 b. 16,400 c. 18,000 d. 20,000 8. Using FIFO process costing, the equivalent units for conversion costs for the month in Department B were a. 16,400 b. 16,800 c. 17,200 d. 17,600

Answer 1

The first 4 parts has been solved with detailed explanation and format. For remaining parts you have to post separate question

e answer Part 5) Sales = (Fixed cost + Net income before tax)/ contribution margin ratio = ((200000*40%)+(80000/(1-60%)))/40% = (80000+200000)/40% = $ 700000 5 5 3 Thus the correct answer is d) $ 700000 0 Part 6) 1 Conversion cost = direct labour + manufacturing overheads 2 150000 = direct labour +100000 3 direct labour = 150000-100000 4 Direct Labour = $ 50000 6 Prime cost = direct material + direct labour 7 80% of manufacturing cost = direct material +50000 8 80%*500000 = dircet material +50000 9 Direct material = 400000-50000 0 Direct Material = $ 350000 2 Thus the correct naswer is C) $ 350000

D E F 24 Part 7) 25 The correct answer is 18000 Units 26 27 Explanation Since material are added at the beginning of the process, sso it means the units already in the beginning inventory already has 100 % material and units started during the period are the only units for material cost has been incurred so the correct answer is 18000 units 30 Part 8) 31 The correct answer is b) 16800 Units Statement of equivalent unit for conversion cost 34 Particulars % Completion Equivalent units 35 Units to complete the beginning inventory (2000 u 60% 1200 (2000*60%) 37 Units started and completed (2000+18000-4000-200 100% 14000 (14000*100%) 39 Units in ending inventory (4000 units) 40% 1600 (4000*40%) 41 Total Equivalent units 16800 42 43 As per HomeworkLib policy we are required to solve the first 4 parts only. For remaining parts you have to post separate question.