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2. (TCO F) The Wisconsin Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below: Percent completed Units Materials Conversion Work in process, June 1 60,000 65% 45% Work in process, Jun 30 55,000 75% 65% The department started 275,000 units into production during the month and transferred 280,000 completed units to the next department. REQUIRED: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.

3. (TCO B) Drake Company's income statement for the most recent year appears below: Sales (26,000 units) $650,000 Less: Variable expenses 442,000 Contribution margin 208,000 Less: Fixed expenses 234,000 Net operating loss $(26,000) Required:

a. calculate the unit contribution margin

Sales Price per Unit = $650,000 / 26,000 = $25

Variable Cost per Unit = $442,000 / 26,000 = $17

CM = $25 - $17 = $8

b. calculate the break-even point in dollars

CM Ratio = $8 / $25 = 0.32

BEP in Dollars = $234,000 / 0.32

= $731,250

c. If the company desires a net operating income of $20,000, how many units must it sell?

= (Fixed Costs + Target Operating Income) / Unit Contribution Margin

= ($234,000 + $20,000) / $8

= 31,750 units

4. (TCO E) The Dean Company produces and sells a single product. The following data refer to the year just completed: Selling Price $ 350 Units in beginning Inventory 0 Units Produced 20000 Units sold 19000 Variable Costs per unit: Direct materials $ 190 Direct labor $ 40 Variable manufacturing overhead $ 25 Variable selling and admin $ 10 Fixed Costs: Fixed manufacturing overhead $ 250,000 Fixed selling and admin $ 225,000 Assume that direct labor is a variable cost. Required: a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. b. Prepare an income statement for...