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  • Accounting Exercises

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    Thanh Dung Huynh
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    The document presents sales, cost of sales, inventory, and cash collection data for a company over three months. In June, total sales were $1.7 million with $1.5 million in sales on account and $200,000 in cash sales. Cost of sales was 80% of total sales at $1.36 million. Cash collections in June included $200,000 in cash sales and $800,000 in sales on account. In July, total sales increased to $1.81 million and cost of sales increased accordingly. Cash collections included the prior month's cash sales plus collections on account from June and the current month's cash sales. This pattern continued for August.

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    The document presents sales, cost of sales, inventory, and cash collection data for a company over three months. In June, total sales were $1.7 million with $1.5 million in sales on account and $200,000 in cash sales. Cost of sales was 80% of total sales at $1.36 million. Cash collections in June included $200,000 in cash sales and $800,000 in sales on account. In July, total sales increased to $1.81 million and cost of sales increased accordingly. Cash collections included the prior month's cash sales plus collections on account from June and the current month's cash sales. This pattern continued for August.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    10 views5 pages

    Accounting Exercises

    Uploaded by

    Thanh Dung Huynh
    The document presents sales, cost of sales, inventory, and cash collection data for a company over three months. In June, total sales were $1.7 million with $1.5 million in sales on account and $200,000 in cash sales. Cost of sales was 80% of total sales at $1.36 million. Cash collections in June included $200,000 in cash sales and $800,000 in sales on account. In July, total sales increased to $1.81 million and cost of sales increased accordingly. Cash collections included the prior month's cash sales plus collections on account from June and the current month's cash sales. This pattern continued for August.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 5

    Sale mix (200 000 units)

    Selling price
    Varialble Cost/unit
    TFC

    a)
    b)
    c)

    Contribution Margin
    % Sale mix
    WACM
    BEP in total units
    BEP in units per product
    Revenue
    Profit
    % New sale mix
    New WACM
    New BEP
    New sale mix
    New CM
    New FC
    New Profit

    A
    50000
    10
    6

    B
    30000
    15
    10

    C
    100000
    8
    6

    D
    20000
    25
    15

    4
    0.25
    1

    5
    0.15
    0.75

    2
    0.5
    1

    10
    0.1
    1

    30000
    200000

    18000
    150000

    60000
    200000

    12000
    200000

    0.25
    1

    0.15
    0.75

    0.4
    0.8

    0.2
    2

    50000
    200000

    30000
    150000

    80000
    160000

    40000
    400000

    450000

    120000

    109890

    500000
    410000

    Total
    200000

    3.75

    750000
    300000
    4.55
    200000
    910000

    a)

    b)

    Per unit
    Direct material
    Direct labour
    Variable overhead
    Fixed overhead

    $4
    30
    15
    25

    Total

    74

    If the company decides to make subassemlies, the total cost for each product will be $74
    If the company decides to buy subassemlies, the total cost for each product will be $55+$2
    Therefore, the company should make subassemblies because of cheaper cost.
    Assume that:
    Total fixed cost
    1000000
    Total required units
    40000
    Buy
    5000
    Make
    35000
    New FC
    950000
    New FC per unit
    27.14286
    Total cost per unit
    $76

    ach product will be $74


    h product will be $55+$25=$80
    heaper cost.

    MAKE

    June

    a)
    b)

    c)
    d)

    July

    August

    Sales on account
    Cash sales

    1,500,000
    200,000

    1,600,000
    210,000

    1,700,000
    220,000

    Total sales

    1,700,000

    1,810,000

    1,920,000

    0.8

    1,360,000

    1,448,000

    1,536,000

    0.3

    408,000
    460,800
    434,400
    1,360,000 1,448,000 1,536,000
    (434,400) (460,800)
    1,333,600 1,421,600

    Cost of sales
    Inventory
    Beginning
    Cost of sales
    Ending balance
    Purchases
    Cash collections
    June
    July
    August
    Cash Sales
    Total cash collections

    600,000

    200,000
    800,000

    750,000
    640,000

    210,000
    1,600,000

    800,000
    680,000
    220,000
    1,700,000

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