Financial Accounting and Managerial Decision-Making: A Comprehensive Assignment
An assignment integrating financial accounting principles with managerial decision-making.
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Financial Accounting and Managerial Decision-Making: A Comprehensive
Assignment
Question 1: Product costs: A cost incurred by a business when manufacturing a good or
producing a service.
Question 2: Use the following information and the indirect method to calculate the net cash
provided or used by operating activities:
$20,900
Question 3: Actual fixed overhead for Kapok Company during March was $92,780. The flexible
budget for fixed overhead this period is $89,000 based on a production level of 5,000 units. If the
company actually produced 4,200 units what is the fixed overhead volume variance for March?
Unit variance = 5,000 - 4,200 = 800 units
Fixed overhead volume variance = 800($89,000/5,000)
800 x $17.80 = $14,240 unfavorable
Question 4: A company's income statement showed the following: net income, $124,000;
depreciation expense, $30,000; and gain on sale of plant assets, $14,000. An examination of the
company's current assets and current liabilities showed the following changes as a result of
operating activities: accounts receivable decreased $9,400; merchandise inventory increased
$18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the
net cash provided or used by operating activities.
$141,000
Question 5: Chance, Inc. sold 3,000 units of its product at a price of $72 per unit. Total variable
cost per unit is $51, consisting of $32 in variable production cost and $19 in variable selling and
administrative cost. Compute the manufacturing margin for the company under variable costing.
120,000
Question 6: A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the
product sells for $75 per unit. What is the company's break-even point in dollar sales?
Assignment
Question 1: Product costs: A cost incurred by a business when manufacturing a good or
producing a service.
Question 2: Use the following information and the indirect method to calculate the net cash
provided or used by operating activities:
$20,900
Question 3: Actual fixed overhead for Kapok Company during March was $92,780. The flexible
budget for fixed overhead this period is $89,000 based on a production level of 5,000 units. If the
company actually produced 4,200 units what is the fixed overhead volume variance for March?
Unit variance = 5,000 - 4,200 = 800 units
Fixed overhead volume variance = 800($89,000/5,000)
800 x $17.80 = $14,240 unfavorable
Question 4: A company's income statement showed the following: net income, $124,000;
depreciation expense, $30,000; and gain on sale of plant assets, $14,000. An examination of the
company's current assets and current liabilities showed the following changes as a result of
operating activities: accounts receivable decreased $9,400; merchandise inventory increased
$18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the
net cash provided or used by operating activities.
$141,000
Question 5: Chance, Inc. sold 3,000 units of its product at a price of $72 per unit. Total variable
cost per unit is $51, consisting of $32 in variable production cost and $19 in variable selling and
administrative cost. Compute the manufacturing margin for the company under variable costing.
120,000
Question 6: A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the
product sells for $75 per unit. What is the company's break-even point in dollar sales?
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Subject
Accounting