Wolf Pizza, Inc. produces two types of frozen pizzas, cheese…

Wolf Pizza, Inc. produces two types of frozen pizzas, cheese and veggie. The two products vary in terms of their contribution margin ratios. The sales mix is 50% cheese and 50% veggie. Which of the following statements regarding the calculation of Wolf’s break-even point in sales revenues is true?

Komodo Supply Company’s monthly sales budget is as follows:…

Komodo Supply Company’s monthly sales budget is as follows: April $160,000, May $130,000, and June $120,000. The company’s policy is to set selling prices to earn a 30% gross profit on sales revenue and to maintain an ending inventory balance equal to 40% of the next month’s cost of goods sold. What is the dollar amount of inventory purchases that is budgeted for the month of May?

Whey Inc. manufactures energy bars and uses process costing….

Whey Inc. manufactures energy bars and uses process costing. Whey has four processing departments: mixing, forming, cutting and packaging. Here are data regarding the work in process inventory of the forming department for the month of October: For purposes of computing the balance of the ending work in process inventory account, the forming department’s cost per equivalent unit of production with respect to transferred-in costs is greater than $1.40. This is attributable to:

Elm Industries uses a standard cost accounting system to com…

Elm Industries uses a standard cost accounting system to compute the cost of its inventory. During the month of May, Elm’s actual total direct labor costs are $51,450. The direct labor rate variance is $1,800 unfavorable, and the direct labor efficiency variance is $750 favorable. What is the total amount of direct labor costs that Elm applies to its work-in-process inventory for the month of May?

Laser Engraving, Inc. applies manufacturing overhead to jobs…

Laser Engraving, Inc. applies manufacturing overhead to jobs using departmental overhead rates based on direct labor costs. For the engraving department, the overhead rate is 160% of direct labor costs. For the packaging department, the overhead rate is 40% of direct labor costs. Job 777 was charged with the following costs: The total cost of producing Job 777 is $189,000. What amount of direct materials were used in the engraving department?