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CAP #1 SPREADSHEET
Actual Level Of Activity for March: Production 14,960 units ← from Goods Manufactured Statement
Sales 8,734 units ← from Income Statement
Manufacturing
Indirect Production Labor 145,000
Production Planning & Control 10,000
Purchasing and Receiving 106,149
Factory Insurance 2,000
Training 5,000
Depreciation, PET 30,833
Depreciation, Building 6,667
Utilities 3,500
Supplies 1,000
Total Manufacturing 310,149
Manufacturing
Material Ex-11 367,296
Material Wy-22 347,300
ALL Materials 714,596 47.767 per unit produced
Direct Labor--Cutting 149,600
Direct Labor--Assembly 90,194
Direct Labor--Finishing 0
ALL Direct Labor 239,794 16.029 per unit produced
Repairs & Maintenance 29,920
Spoilage 27,600
Utilities 11,220
Supplies 11,220
ALL Manufacturing Overhead 79,960 5.345 per unit produced
Total Manufacturing Unit Variable Costs 1,034,350 69.141 per unit produced
REQUIRED:
1 What is the linear equation that represents total costs/expenses for B.Widget ? 2863016.52
(in the form TC = vQ + F, where v and F are total dollar amounts determined above)
2 Compute TOTAL marketing, general and administrative, and manufacturing fixed costs
and TOTAL variable costs for B.Widget at each of the following activity levels:
# of Units Marketing Gen & Admin Manufacturing Total Cost per Unit
Net
Account GROUP
ASSETS Totals: TOTALS:
CURRENT:
Cash $0
Accounts Receivable $0
Allowance for Bad Debts (0) 0
Inventory:
Raw Materials 237,304
Finished Product 674,347 911,651
TOTAL CURRENT ASSETS 911,651
FIXED:
Production Equipment & Tools 3,700,000
Accumulated Depreciation, PET (92,500) 3,607,500
Building 2,000,000
Accumulated Depreciation, Bldg. (25,000) 1,975,000
TOTAL FIXED ASSETS 5,875,000
INVESTMENTS:
Investments in Stock 0 0
LIABILITIES
CURRENT:
Accounts Payable $0
Notes Payable - First National Bank 500,000
Notes Payable - Commerce Bank 450,093
Accrued Income Taxes Payable (345,532)
TOTAL CURRENT LIABILITIES 604,561
LONG TERM:
Bonds Payable 3,000,000
( 3,000,000 less discount 51,543.63 ) (57,544) 2,942,456
STOCKHOLDERS' EQUITY
Common Stock (Authorized: 80,000; Issued:30,000) 3,000,000
Premium (Discount) on Common Stock 600,000
Retained Earnings (Deficit) (360,366)
EXPENSES:
Selling
Sales Salaries 108,000 117,000 180,000 0 405,000
Sales Commissions 47,280 63,039 99,288 0 209,607
Sales Training 30,120 8,760 47,280 0 86,160
Sales Travel 17,730 13,135 16,548 0 47,413
Advertising 92,000 80,200 125,000 0 297,200
Packaging 3,940 5,254 8,274 0 17,468
Bad Debts 0 0 0 0 0
Sales Office Rentals 5,000 5,000 5,000 0 15,000
Sales Office Operations 20,000 20,000 20,000 0 60,000
Home Office Selling Expense 5,498 7,331 11,546 0 24,375
Credit Department Expense 0 0 0 0 0
Total Selling Expense 329,568 319,719 512,936 0 1,162,223
Interest Income 0
Other Income 0
Interest Expense (28,181)
Other Expense 0
DIRECT LABOR:
Cutting Department 149,600
Assembly Department 90,194
Finishing Department 0
TOTAL DIRECT LABOR: 239,794
MANUFACTURING OVERHEAD:
Variable:
Repairs & Maintenance 29,920
Spoilage 27,600 57,520
Fixed:
Indirect Production Labor 145,000
Production Planning & Control 10,000
Purchasing and Receiving 106,149
Factory Insurance 2,000
Training 5,000
Depreciation, PET 30,833
Depreciation, Building 6,667 305,649
Mixed:
Utilities 14,720
Supplies 12,220 26,940
TOTAL MANUFACTURING OVERHEAD: 390,109
NOTE 1
All freight-in costs are for Wy-22;
no freight for Ex-11
B. Widget Company
Finished Product Inventory
for the month ending March 31, 2003
Units $ Amount