7.

3)

reconcilition of VC & AC - NOI

YEAR 1 YEAR 2 YEAR3
VC NOI $1,080,400 $1,032,400 $996,400
F.MOH cost deffered in inventory
under AC
( Y2- 10×$560 ) 5600
( Y3- 40×$560 ) 22400

(-) F.MOH coct released from inventory

under AC ( Y1- 30×$560 ) 16800

AC NOI $1,063,600 $1,038,000 $1,018,800

7.5)

1) VC
D.M $50
D.L 80
V.MOH 20
UNIT PRODUCT COST $150

2) VC
$ $
sales (19000×$210 ) 3990000
variables expenses ;
VEOGS;
Begin inventory 0
(+) V. MOH cost (20000×$150) 3000000
good available for sales 3000000
(-) end inventory (1000×$150) 150000
V.COGS 2850000
(+) V. S/ A expenses (19000×$10) 190000
3040000
CM (19000×$50) 950000
FC ;
F MOH ( 20000×$35) 700000
F SELLING & ADMIST 285000
985000
NET/LOSS OI 35000

3)
BEV= ΣFE ÷ CM/UNIT

$985000÷$50/UNIT
JAWPAN- 19700 UNIT
7.6)

1) AC
D.M $50
D.L 80
V MOH 20
$150
(+) F MOH 35
UNIT PRODUCT COST $185

2)
AC

$ $
SALES (19000×$210) 3990000
(-) COGS ;
BEGIN INVENTORY 0
(+) COGM (20000×$185) 3700000
GOOD OF AVAILABLE FOR SALE 3700000
(-) END INVENTORY (1000×$185) 185000
COGS 3515000
GROSS MARGIN 475000
SELLING & ADM ;
F S/A 285000
V S/A 190000
465000
NOI 0

7.7)

1.A) D.M $6
D.L 9
PRODUCT COST $15
V MOH 3
F MOH $12
UNIT PRODUCT COST $30

1.B)
$ $
SALES (20000×$50) 1000000
(-) COGS
BEGIN INV 0
(+) COGM (25000×$30) 750000
GOOD AVAILABLE FOR SALE 750000
(-) END INV (5000×$30) 150000
COGS 600000
GROSS MARGIN 400000
 (-) SELLING & ADM ;
F S/A 190000
V S/A (20000×$40) 80000
270000
NOI 130000

2.A)
D.M $6
D.L 9
V MOH 3
UNIT PRODUCT COST $18

2.B) $ $
SALES ( 20000× $50) 1000000
(-) VE ;
VCOGS;
BEGIN INV 0
(+) VMC (25000×&18) 450000
GOOD AVAILABLES FOR SALE 450000
(-) END INV 90000
VCOGS 360000
V S/A 80000
440000
CM ($28×20000) 560000
(-) FC;
F MOH 300000
F S/A 190000
490000
70000