Answer Happy

Agnes Manufacturing Company is a producer of sports equipment inOrange Country, California, USA. Inventory data from its mostrecently concluded year of operations 2021 at 5,000 units ofproduction were as follows: Raw materials, Beginning $15,000 Rawmaterials, Ending $10,000 Work in process, Beginning $25,000 Workin process, Ending $20,000 Finished goods, Beginning $90,000Finished goods, Ending $85,000 Direct labor was determined to be$300,000; indirect labor (fixed) $40,000; and supervisors in thefactory earns $50,000 (fixed) annually. General and administrativeexpenses represent salaries of executives and management totaling$110,000. Total sales reached $1,200,000 where commissions of 5%were paid to salespersons. Further ledger details were provided bythe company bookkeeper: Purchases of raw materials (all direct)$150,000 Indirect materials (variable) $ 5,000 Maintenance in thefactory $30,000 Supplies in the factory (variable) $3,000Depreciation of factory equipment (straight line) $18,000Depreciation office equipment (straight line) $12,000 As part ofits compensation package, the company provides meal tickets to itsemployees and factory workers. This is a fixed amount annuallyallocated as follows: factory workers $20,000 and office workers$2,000. Due to its shared facilities between the factory and theoffice, utilities, insurance and rent are allocated on a reasonablebasis. It was determined that 95% of the $100,000 total utilitiesgoes to factory operations and the remaining 5% chargeable to theoffice. Likewise, the fixed insurance policy for the propertyamounting to $80,000 is split 80% for the factory and 20% for theoffice. Rent is fixed at $150,000 and 80% based on floor area isallocated to the factory and the remaining 20% for the office.Based on earlier experience at production level of 9,000 units,maintenance costs (mixed) were determined to be $36,000 whileutilities costs (mixed) in the factory were recorded at $103,000.This is the highest activity level planned and currently thecompany is at its lowest production level of 5,000 due to theeffect of the pandemic. For decision making purposes, this wasdetermined as the company’s relevant range.
Compute the following at the current level of 5,000 productionunits: 1. Direct materials used in production 2. Totalmanufacturing overhead 3. Prime costs 4. Conversion costs 5. Costof goods placed in process 6. Cost of goods manufactured 7. Cost ofgoods available for sale 8. Cost of goods sold 9. Gross profit 10.Operating Expenses 11. Net operating income
Compute the following after considering a high-low costsegregation analysis 12. Manufacturing overhead total variable costrate per unit (slope) 13. Manufacturing overhead total fixed cost(intercept)
If management plans to manufacture 7,500 units next year computethe following: 14. Total cost of maintenance in the factory 15.Total cost of utilities in the factory 16. Cost function ofmaintenance 17. Cost function of utilities If management plans tomanufacture at 6,000 units next year compute the following: 18.Total manufacturing overhead 19. Cost function of totalmanufacturing overhead 20. Total manufacturing overhead at 8,000units of production