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Part 1:

Given the following information for a retail company, what is the total cost of goods purchased for the period?

Purchases discounts	$	4,550
Transportation-in		7,150
Ending inventory		37,850
Gross merchandise cost		331,000
Purchases returns		9,000
Beginning inventory		29,250
Sales discounts		10,900

$324,600

$306,550

$316,000

$331,000

Part 2:

Laner Company has the following data for the production and sale of 2,000 units.

Sales price		$	600.00	per unit
Fixed costs:
Marketing and administrative		$	240,000	per period
Manufacturing overhead		$	120,000	per period
Variable costs:
Marketing and administrative		$	37.50	per unit
Manufacturing overhead		$	60.00	per unit
Direct labor		$	75.00	per unit
Direct material		$	150.00	per unit

What is the contribution margin per unit?

$285.00

$97.50

$277.50

$322.50

Part 3:

Laner Company has the following data for the production and sale of 2,000 units.

Sales price		$	620.00	per unit
Fixed costs:
Marketing and administrative		$	230,000	per period
Manufacturing overhead		$	115,000	per period
Variable costs:
Marketing and administrative		$	38.75	per unit
Manufacturing overhead		$	62.00	per unit
Direct labor		$	77.50	per unit
Direct material		$	155.00	per unit

What is the conversion cost per unit?

$139.50

$254.50

$197.00

$77.50

Part 4:

The following information pertains to Syl Co.:

Sales	$750,000
Variable Costs	600,000
Fixed Costs	120,000

What is Syl's break-even point in sales dollars? (CPA adapted)

$30,000.

$150,000.

$600,000.

$24,000.

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