The following information is available for company X, regarding their flexible budget. 

Indicate whether the following sentences are TRUE or FALSE.

Company X uses process costing. During the period under analysis the company produced 10000

units, of which 622 units were spoiled, due to the fact that the manufacturing process, even though

carefully and efficiently executed, is unable to produce good units 100% of the

time. The total number of units spoiled in the period was 722 units. During the period there was a machine breakdown. The standard normal spoilage rate for the company is unknown.

What was the actual normal spoilage rate for the period under analysis? (round to two decimal

places)

Company X uses the weighted-average method in its process costing system. There were 15124 units in the department's beginning work in process inventory, which were 62% complete with respect to conversion costs. During the current month, 105745 units were started and 100000 were completed and transferred out of the department. A total number of 103345 equivalent units of production was computed with respect to conversion costs during the current month. Conversion costs are added evenly in the process.

Assuming that there is no spoilage, the ending work in process inventory in the department has the following degree of completion in terms of conversion costs:

Company X produced 3000 units and presents the following information:

Manufacturing costs

• Variable cost: $150 /unit
• Fixed cost: $183 /unit

Inventory data

• Beginning inventory: 1200 units

• Ending inventory: 2200 units

If Company X uses an absorption costing system, what is the amount of fixed manufacturing costs expensed in the Income statement assuming no variances?

Company X manufactures a single product. For each unit, $2891 of direct material is used and there is $2000 of direct manufacturing labor at $20 per hour. Manufacturing overhead is applied at $22 per direct manufacturing labor hour.

Calculate the profit earned on 50 units if each unit sells for $9000.

Company X presents the following information:

• Beginning inventory of Finished goods: $120000
• Ending inventory of Finished goods: $60000
• Beginning inventory of Work in progress: $150000
• Ending inventory of Work in progress: $90000
• Direct materials used in production: $30000
• Direct Labor and overhead costs: $180000

Based on the information above, determine the cost of goods sold (COGS) for the period.

The following information is available for Company

X:

• Revenue

  = $400000

• Selling

  price = $40/unit

• Fixed costs = $200000

• Operating

  income before taxes = $100000

How much is the net income after taxes if the

company sells 20000 units, assuming an income tax rate of 21% ?