1. Cost of goods manufactured --- Numbers are in thousands
Direct Materials:
Beginning Inventory $22,000
Purchases of direct materials $75,000
Cost of direct materials for use $97,000
Ending Inventory $26,000
Direct Materials Used $71,000
Direct Manufacturing Labor $25,000
Manufacturing Overhead Cost:
Indirect Manufacturing Labor $15,000
Insurance $ 9,000
Repairs $ 4,000
Depreciation $11,000
Total manufacturing overhead costs $ 39,000
Manufacturing costs incurred $135,000
Beginning Work in Progress $ 21,000
Total Manufacturing Cost $156,000
Ending Work in Progress $ 20,000
Costs of goods manufactured $136,000
2. Income Statement --- Numbers are in thousands
Revenues $300,000
Cost of goods sold:
Beg. Finished Goods Inventory $ 18,000
Cost of goods manufactured $136,000
Cost of goods Available $154,000
Ending Finished Goods $ 23,000
Cost of goods sold $131,000
Gross Margin $169,000
Operating Costs:
Marketing etc. $93,000
Administrative $29,000
Total Operating Costs $122,000
Operating Income $ 47,000
3-33
1. Breakeven Point = (Selling Price*Quantity) – (Variable Cost*Quantity) – Fixed Cost
Set OI to $0
($4,000*Q) – ($3,600*Q) - $480,000 = $0
($4,000*Q) – ($3,600*Q) = $480,000
CM = FC
CM = $4,000 - $3,600 = $400
$400Q = $480,000
Q = $480,000 / $400
Q = 1200 trips is the break even quantity
2. OI = $100,000
$100,000 = ($4,000*Q) – ($3,600*Q) - $480,000
$580,000 = $4,000Q ...