Question

#24

Tuity Fruity Beverage​ Company's operating activities for the year are listed below.

Purchases	​$140,300
Operating expenses	80,200
Beginning inventory	12,800
Ending inventory	18,300
Sales revenue	300,200

What is the cost of goods sold for the​ year?

#25

Lie Around Furniture manufactures two​ products: Futons and Recliners. The following data are​ available:

	Futons	Recliners
Sales price	$ $530	$ $710
Variable costs	$ $390	$ $415

The company can manufacture either

3

futons per machine hour or

1

​recliner(s) per machine hour. The​ company's production capacity is

13,000

machine hours per month.

What is the contribution margin per machine hour for​ recliners?

Answer 1

Question 24
Cost of Goods Sold
Beginning inventory	12,800
Add: Purchases	1,40,300
Less: Ending Inventory	18,300
Cost of Goods Sold	1,34,800
Question 25
Sale value	710
Variable cost	415
Contribution	295
Units per machine hour	1
Contribution per machine hour	295