ACCT 2321 Homework Assignment 1 Ms. Olga Frangie Exercise 1. Bilal, Inc. produces a high quality insulation material that passes through two processes. Data for November for the first process follow:...

ACCT 2321 Homework Assignment 1 Ms. Olga Frangie Exercise 1. Bilal, Inc. produces a high quality insulation material that passes through two processes. Data for November for the first process follow: Units Materials Conversion Work in process inventory, November 1…. 40,000 $ 135,150 $170,000 Units started into production...……………..380,000 Units transferred out...………….…………..260,000 Work in process inventory, November XXXXXXXXXX,000 Cost added during November (period) …… $853,500 $500,540 The beginning work in process inventory was 80% complete with respect to materials and 75% complete with respect to conversion. The ending work in process inventory was 45% complete with respect to materials and 10% complete with respect to conversion. Required: Assume the company uses the weighted – average method of accounting for units and costs. 1. Compute the equivalent units for November’s activity for the first department 2. Determine the costs per equivalent unit for November. 3. Determine the cost of ending work in process inventory. 4. Determine the cost of the units transferred to the next department.  Materials Conversion       Units transferred to the next department     Work in process, ending:     Materials     Labor and overhead     Equivalent units of production Materials Conversion       Cost of beginning work in process     Costs added during the period     Total cost (a)     Equivalent units of production (b)     Cost per equivalent unit (a):(b)       Department 1      Cost of Ending WIP Inventory and Units Transferred out Materials Conversion Total         Ending WIP inventory:       Equivalent units (a)       Cost per equivalent unit (b)       Cost of Ending WIP inventory (a*b)       Units completed and transferred out:       Units transferred (a)       Cost per equivalent unit (b)       Cost of units transferred out (a*b)   Department 1     Cost Reconciliation Costs to be accounted for:   Cost of beginning Work in Process Inventory     Costs added to production during the period Total cost to be accounted for       Cost accounted for as follows:   Cost of ending Work in Process Inventory     Cost of units transferred out Total cost accounted for Exercise 2. For the coming year, Saad Company anticipates the following information: Selling price $8 per unit Variable expense $3.7 per unit Fixed expense $37,400 Units of sales 20,000 units Required: 1. Compute the break-even point in terms of units must be sold (at budgeted sales). 2. Compute the break-even point in dollars. 3. Compute CM ratio to 2 decimal places. 4. Compute the margin of safety. 5. Compute the degree of operating leverage. 6. If next month sales will decrease by 10%, what will be the percentage change in net operating income? Exercise 3. The following data have been provided by Fattig Corporation, which uses the weighted-average method in its process costing. The data are for the company's Shaping Department for October.    Work in process, October 1 $23,550 $14,208 XXXXXXXXXXCost added during October $87,506 $62,700 Required: 1. Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method.  7. Compute the cost per equivalent unit for materials and conversion for the Shaping Department in October. 8. Total cost of ending inventory. 9. Total cost of units transferred out. Exercise 4. Butremovic Corporation's contribution format income statement for the most recent month follows:    Required: a. Compute the degree of operating leverage to two decimal places. b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from an 8% increase in sales.  c. Compute CM Ratio. d. Compute Break-even in units. e. Computer Margin of safety in dollars. Exercise 5. Longiotti Corporation produces and sells a single product. Data concerning that product appear below:    Required: Determine the monthly break-even in total dollar sales. Show your work!