Cost-Volume-Profit (CVP) Analysis considers the impact that changes in output have on revenue, costs, and net income. In applying CVP Analysis, costs are separated into variable and fixed costs. This distinction is important because, as mentioned previously, variable costs change with changes in output, whereas fixed costs remain constant throughout what is referred to as a relevant range. CVP analysis is based on the following equation: Profit = Total Revenues - Total variable costs - Total fixed
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Practice Final Answer Key Answer Key 1. Direct materials used = 6,000 + 7,000 – 1,000 = 12,000 Cost of goods manufactured = 12,000 + 5,000 + (600 + 500 + 1,900 + 3,500) + 800 – 3,000 = 21,300 Cost of goods sold = 4,000 + 21,300 – 5,300 = 20,000 Gross margin = 31,800 – 20,000 = 11,800 2. B 3. D 4. D Sales 350,000 – CGS 160,000 = 190,000 5. B Sales 350,000 – CGS (variable) 160,000 – Var Sell and Adm 35,000 – Var Adm 15,000 = 140,000 6. C 7
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Case Study 1 Supplied Information Materials Purchased Direct Labor Sales Gross Margin Cost of Goods Available for Sale Prime Costs Manufacturer Overhead Direct Materials Beginning Balances Raw Materials Works in Progress Finished Goods Notes Conversion cost = Manufacturing overhead + direct labor Known: Manufacturing overhead= 65% of conversion Direct labor= Direct = 35% of Conversion costs 220,000= 35% of Conversion 220,000/.35= Conversion cost Conversion cost = Manufacturing overhead + direct
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Question : | (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just-completed year. | Sales | $950 | | Purchases of raw materials | $170 | | Direct labor | $210 | | Manufacturing overhead | $220 | | Administrative expenses | $180 | | Selling expenses | $140 | | Raw materials inventory, beginning | $70 | | Raw materials inventory, ending | $80 | | Work-in-process
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Page: | 1 2 | 1. | Question : | (TCO A) The variable portion of advertising costs is a | | | Student Answer: | | Conversion YES... Period NO. | | | | Conversion YES .... Period YES. | | | | Conversion NO.... Period YES. | | | | Conversion NO.... Period NO. | | Instructor Explanation: | Chapter 2 | | | | Points Received: | 0 of 6 | | Comments: | | | | 2. | Question : | (TCO A) The costs of staffing and operating the accounting department
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1. (TCO F) Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below. Estimated machine hours - 85,000 Estimated variable manufactruring overhead - $5.55 per machine hour Estimated total fixed manufacturing overhead - $951,888 Compute the company's predetermined overhead rate. Total variable manufacturing overhead = $5.55 * 85000 = $471750 So, total predetermined overhead = $951888 - 471450 =
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ACCT 505 Entire Course For more classes visits www.snaptutorial.com ACCT 505 Week 1-7 All Discussion Questions ACCT 505 Week 1 Case Study ACCT 505 Week 2 Quiz Job Order and Process Costing Systems ACCT 505 Week 3 Case Study II ACCT 505 Week 4 Midterm Exam ACCT 505 Week 5 Measuring Performance - Course Project A ACCT 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions ACCT 505 Week 7 Capital Budgeting Course Project -----------------------------------------------------------
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ACCT 505 Entire Course ¬For more classes visits www.snaptutorial.com ACCT 505 Week 1-7 All Discussion Questions ACCT 505 Week 1 Case Study ACCT 505 Week 2 Quiz Job Order and Process Costing Systems ACCT 505 Week 3 Case Study II ACCT 505 Week 4 Midterm Exam ACCT 505 Week 5 Measuring Performance - Course Project A ACCT 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions ACCT 505 Week 7 Capital Budgeting Course Project ---------------------------------------------------------
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ACCT 505 FULL WEEK 6 To purchase this visit following link: http://www.activitymode.com/product/acct-505-full-week-6/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACCT 505 FULL WEEK 6 ACCT 505 Full Week 6 ACCT 505 Week 6 Quiz ACCT 505 Week 6DQ 1 Segment Reporting & Relevant Costs ACCT 505 Week 6 DQ 2 Research and Application Activity mode aims to provide quality study notes and tutorials to the students of ACCT 505 Full Week 6 in order to ace their studies. ACCT 505 FULL WEEK 6 To purchase
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ACCT 505 FULL WEEK 2 To purchase this visit following link: http://www.activitymode.com/product/acct-505-full-week-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACCT 505 FULL WEEK 2 ACCT 505 Full Week 2 ACCT 505 Week 2 Chaper 3 Systems Design – Job-Order Costing ACCT 505 Week 2 DQ 1 Job Order and Process Costing Systems ACCT 505 Week 2 DQ 2 Research and Application ACCT 505 Week 2 Quiz Activity mode aims to provide quality study notes and tutorials to the students of ACCT 505 Full Week
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