Question: Felix & Co. reports the following information about
Felix & Co. reports the following information about its sales and cost of sales. Draw an estimated line of cost behavior using a scatter diagram, and compute fixed costs and variable costs per unit sold. Then use the high-low method to estimate the fixed and variable components of the cost of sales.
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Units Cost of Units Cost of Period Sold Sales Period Sold Sales 1. $2,500 6.. 2,000 5,500 2... 400 3,100 7.. 2,400 6,100 3... 800 3,700 8.. 2,800 6,700 4.. 1,200 4,300 9... 3,200 7,300 5.... 1,600 4,900 10..... 3,600 7,900 ... .. .. .. .. ... .. . .. .. .. . .. ...
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> Assume that you are preparing for a second interview with a manufacturing company. The company is impressed with your credentials but has indicated that it has several qualified applicants. You anticipate that in this second interview, you must show what
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> What is a variable cost? Identify two variable costs.
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> When units produced exceed units sold for a reporting period, would income under variable costing be greater than, equal to, or less than income under absorption costing? Explain.
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> Why are multiple departmental overhead rates more accurate for product costing than a single plantwide overhead rate?
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> Define and describe contribution margin per unit.
> Define and explain the contribution margin ratio.
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> Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming
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> List the headings of the three major sections of a process cost summary.
> Put the four steps in accounting for production activities in the order in which they would occur. a. Determine physical flow of units b. Compute the cost per equivalent unit c. Compute equivalent units of production d. Assign and reconcile costs
> The cost of beginning inventory plus the costs added during the period should equal the cost of units _____________________ plus the cost of _____________________.
