3/16/2017 SLP ACC403 Principles of Accounting (FEB2017FT1) Table of Contents Module 3: Managerial Accounting - Variable Costing SLP SLP Listen Module...
3 /1 6/2 017 S LP A C C403 P rin cip le s o f A ccountin g ( F EB2017F T1 ) h ttp s://tlc .tr id ent.e du/d 2l/le /c onte nt/8 4065/v ie w Conte nt/2 046235/V ie w 1 /3 T ab le o f C on te n ts M od u le 3 : M an ag eria l A cco u n tin g - V aria b le C ostin g S LP S LP M odule 3 S LP M ANAG ER IA L A CCO UNTIN G V A R IA BLE C O STIN G W e'r e u sin g a d if f e re nt fic tit io us c o m pany fo r th e la st tw o m odule s, th e m anageria l a cco untin g p ortio n o f th is c o urs e . B elo w fin d p ro ductio n a nd s a le s i n fo rm atio n fo r L ew is C om pany. P ro duct in fo rm atio n P ro d B B egin nin g in ve nto ry 0 U nit s p ro duce d 1 0,0 00 U nit s s o ld 9 ,0 00 S ellin g p ric e p er u nit $ 300 V aria b le c o sts p er u nit D ir e ct m ate ria l 1 20 D ir e ct la bor 6 0 V aria ble o ve rh ead 4 0 V aria ble s e llin g a nd a dm in is tra tiv e 1 0 F ix ed c o sts F ix e d m anufa ctu rin g o ve rh ead 2 50,0 00 F ix e d s e llin g a nd a dm in is tra tiv e 1 00,0 00 L is te n 3 /1 6/2 017 S LP A C C403 P rin cip le s o f A ccountin g ( F EB2017F T1 ) h ttp s://tlc .tr id ent.e du/d 2l/le /c onte nt/8 4065/v ie w Conte nt/2 046235/V ie w 2 /3 R efle ct i n e P ortfo lio D ow nlo ad P rin t O pen w it h d ocR ead er F ix e d s e llin g a nd a dm in is tra tiv e 1 00,0 00 L ew is C om pan y A bso rp tio n In co m e S ta te m en t F or th e p erio d e n din g D ec. 3 1, 2 015 S ale s $ 2,7 00,0 00 C ost o f g oods s o ld 2 ,2 05,0 00 G ro ss p ro fit (m arg in ) $ 495,0 00 S ellin g a nd a dm in is tra tiv e e xp ense s 1 90,0 00 N et in co m e $ 305,0 00 P re pare a c o ntr ib utio n m arg in ( b ehavio ra l, v a ria ble ) in co m e s ta te m ent fo r L ew is C om pany, c o m pare n et o pera tin g p ro fit fr o m a c o ntr ib utio n m arg in i n co m e s ta te m ent w it h n et in co m e fr o m a n a bso rp tio n in co m e s ta te m ent, a nd e xp la in w hy th is d if f e re nce h appens. P re pare a s e co nd v e rs io n a ssu m in g th e s e llin g p ric e p er u nit in cre ase s to $ 320 p er u nit .
F urth er, a nsw er b re ak e ve n q uestio ns b elo w . U se th e o rig in al in fo rm atio n to : D ete rm in e th e n um ber o f u nit s th e c o m pany m ust s e ll to b re ak e ve n fo r th e y e ar?
C om pute b re ak e ve n a ssu m in g d ir e ct m ate ria ls c o st in cre ase fr o m $ 120 to $ 150, b ut a ll in fo rm atio n r e m ain s th e s a m e. S LP A ssig nm en t E xp ecta tio ns I t is im porta nt to a nsw er th e q uestio ns a s p ose d. T he d ocu m ent s h ould b e tw o t o fo ur p ages a nd w rit te n in a c le ar a nd c o ncis e m anner o r p re se nt ta ble s a s r e quir e d. S upport y o ur d is cu ssio n o r ta ble s w it h r e fe re nce s in A PA fo rm at. Y ou a re e nco ura ged to u se E xce l o r o th er c o m patib le s p re adsh eet w hen c o m puta tio ns a re in vo lv e d. Y ou c a n tu rn in th e s p re adsh eet in ste ad. T he Y ou h ave v ie w ed t h is t o p ic A ctiv it y D eta il s 3 /1 6/2 017 S LP A C C403 P rin cip le s o f A ccountin g ( F EB2017F T1 ) h ttp s://tlc .tr id ent.e du/d 2l/le /c onte nt/8 4065/v ie w Conte nt/2 046235/V ie w 3 /3 L ast V is it e d M ar 1 6, 2 017 4 :0 3 P M