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The following data have been taken from the accounting records of Larder Corporation for the just completed year.

	Sales...........................................................................	$2,250,000
	Purchases of raw materials...........................................................................	$520,000
	Direct labor...........................................................................	$455,000
	Applied Manufacturing overhead...........................................................................	$410,000
	Administrative expenses...........................................................................	$385,000
	Selling expenses...........................................................................	$257,000
	Raw materials inventory, beginning...........................................................................	$340,000
	Raw materials inventory, ending...........................................................................	$290,000
	Work in process inventory, beginning...........................................................................	$315,000
	Work in process inventory, ending...........................................................................	$295,000
	Finished goods inventory, beginning...........................................................................	$275,000
	Finished goods inventory, ending...........................................................................	$310,000

Required:

1. Prepare a Schedule of Cost of Goods Manufactured in good form.
2. Compute the Cost of Goods Sold.
3. Using data from your answers above, prepare an Income Statement (using the traditional format).

2. (8 points) Gonzalez, Inc. manufactures stereo speakers in two factories; one in Vandalia, Illinois and another in Merced, California. The Vandalia factory uses direct labor hours (DLHs) for its overhead rate and the Merced factory uses machine-hours (MHs) for its overhead rate. Information related to both plants for last year is presented below:

		Vandalia factory	Merced factory
	Estimated manufacturing overhead...........	$990,000	$3,225,000
	Estimated amount of allocation base........	(a)______________	150,000 MHs
	Predetermined overhead rate.....................	$18 per DLH	(d)______________
	Actual amount of allocation base..............	(b)______________	149,000 MHs
	Actual manufacturing overhead...............	$1,185,000	$3,185,000
	Applied manufacturing overhead.............	$1,026,000	(e)_______________
	Under or overapplied overhead (indicate the dollar amount and whether it is over or underapplied)...........................	(c)______________	(f)_______________

Required:

Fill in the lettered blanks above. SHOW YOUR CALCULATIONS BELOW (For partial credit)!

3. (12 points) Anchor Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

	Work in process, beginning:
	Units in process...........................................................	5,000
	Costs in the beginning inventory:
	Materials cost...........................................................	$281,250
	Conversion cost........................................................	$50,000
	Units started into production during the month.............	130,000
	Units completed and transferred out..............................	110,000
	Costs added to production during the month:
	Materials cost..............................................................	$500,000
	Conversion cost...........................................................	$400,000
	Work in process, ending:
	Units in process...........................................................	25,000
	% of completion with respect to materials..................	60%
	% of completion with respect to conversion...............	40%

Required:

Prepare a process costing departmental production report (calculation of equivalent units, cost per equivalent unit, and cost reconciliation) for the department using the weighted-average method. Round the cost per unit to the nearest cent.

4. (8 points) The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:

	Amount
Sales	$	220,000
Sales in units		440 pairs
Selling price per pair of skis	$	500
Variable selling expense per pair of skis	$	35
Variable administrative expense per pair of skis	$	19
Total fixed selling expense	$	31,000
Total fixed administrative expense	$	28,000
Beginning merchandise inventory	$	80,000
Ending merchandise inventory	$	60,000
Merchandise purchases	$	100,000

Note: to calculate COGS you will need to use the following equation: Beg. Merch. Inventory + Merch. Purchases End. Merch. Inventory. COGS is a variable expense.

Required:

1. Prepare a traditional income statement for the quarter ended March 31.

2. Prepare a contribution format income statement for the quarter ended March 31.

3. What was the contribution margin per unit?

Could you please answer these questions.

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