Saved A manufacturer sold 6,960 units of its product at the price of $40 last year. The variable cost petunt was $24 There operating leverage was 4. What was the margin of safety (in $) for this company last year? (All answers are whole numbers - unless specified otherwise. You should NOT include the Sra.com 1000 for one thousand. Negative numbers should be added with a minus sign, eg 1000 for deres Margin of Safety = $ 53:36 A company provided the following data for its first year of operations ended on June 30. Figures are all in the company closes any under-or over-applied manufacturing overhead costs to cost of goods sold at the end of the Selling and administrative expenses Manufacturing overhead applied to Work-in-process Actual manufacturing overhead cost Cost of goods available for sale during the year Finished goods, ending balance Net operating income (after adjusting COGS) 261 337 358 730 56 12 What was the total sales for the year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the 1000 for one thousand. Negative numbers should be added with a minus signe...000 fer Sales = $ Saved A company had the following operations: Inventories beginning balance Raw materials (all direct) ending balance $34,000 $37,500 Work in process $22,500 $15,000 Finished goods $67,500 $88.000 Additional information: Raw materials purchased $ 105,000 Direct manufacturing labor payroll (DL cost) $ 75,000 $ 12/DLH Direct manufacturing wage rate per hour $ 16/DLH Predetermined overhead rate per direct labor hour How much was the Raleigh's unadjusted cost of goods sold for the period? -47 (All answers are whole numbers -- unless specified otherwise. You should NOT include the signar 1000 for one thousand. Negative numbers should be added with a minus sign. eg. 1000 for a decades Cost of goods sold (unadjusted) - $

Req 1. Unit contribution= 40-24 = 16 Contribution margin ratio = 16/40 = 40% Total Contribution = 6960 units @16 = $111,360 Degree of Operating leverage = 4 Degree of Operating leverage = Contribution / Net Income 4 = 111,360 / Net Income Net Income = $ 27,840 Margin of Safety = Net Income / Contribution margin ratio 27,840 /40% = $69,600 Answer is $ 69,600 Req 2. Total sales: Cost of goods available for sale 730 Less: Ending Finished goods inventory -56 Cost of goods sold 674 Add: Selling and admin expense 261 Add: Net Operating income 17 Total sales: 952 Answer is $ 952. Req 3. Beginning RM inventory 34000 Add: Purchases 105000 Total Cost of Rm available 139000 Less: Ending RM inventory 37500 Direct material used 101500 Direct Labour used 75,000 Overheads applied (75000/12 *16) 1,00,000 Total Manufacturing cost 276500 Add: Beginning WIP inventory 22,500 Total cost of WIP 2,99,000 Less: Ending WIP inventory 15,000 Cost of goods manufactured 2,84,000 Add: Beginning Inventory of FG 67,500 Total cost of goods available for sale 3,51,500 Less: Ending inventory of FG 88,000 Cost of goods sold 2,63,500 Answer is $ 263,500 .

Saved A manufacturer sold 6,960 units of its product …

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Req 1.
Unit contribution= 40-24 = 16
Contribution margin ratio = 16/40 = 40%
Total Contribution = 6960 units @16 = $111,360

Degree of Operating leverage = 4
Degree of Operating leverage = Contribution / Net Income
4 = 111,360 / Net Income
Net Income = $ 27,840

Margin of Safety = Net Income / Contribution margin ratio
	27,840 /40% = $69,600

Answer is $ 69,600

Req 2.
Total sales:
Cost of goods available for sale		730
Less: Ending Finished goods inventory	-56
Cost of goods sold			674
Add: Selling and admin expense		261
Add: Net Operating income		17
Total sales:				952

Answer is $ 952.

Req 3.
Beginning RM inventory	34000
Add: Purchases		105000
Total Cost of Rm available	139000
Less: Ending RM inventory	37500
Direct material used			101500
Direct Labour used			75,000
Overheads applied (75000/12 *16)	1,00,000
Total Manufacturing cost		276500
Add: Beginning WIP inventory		22,500
Total cost of WIP			2,99,000
Less: Ending WIP inventory		15,000
Cost of goods manufactured		2,84,000
Add: Beginning Inventory of FG		67,500
Total cost of goods available for sale	3,51,500
Less: Ending inventory of FG		88,000
Cost of goods sold			2,63,500

Answer is $ 263,500

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