From the following list of selected accounts taken from the records of Miller

Clinic, identify which would appear on the Balance sheet.

a) Jane Miller, Capital f) Accounts Payable
b) Patient Revenue g) Cash
c) Land h. h) Rent Expense
d. Wages Expense i) Medical Supplies
e) Notes Payable j) Utilities Expense

a)Jane Miller, Capital e)Notes Payable f) Accounts Payable g)cash i)medical supplies

Indicate in the space provided by each item whether it would appear on

the Income statement (IS), Balance sheet (BS), or Statement of
owner's equity (OE):
1. _____ Unearned Revenue 7. _____ Notes Payable
2. _____ Prepaid Expense 8. _____ D. Donovan,
Capital
3. _____ Salaries Expense 9. _____ Notes
Receivable
4. _____ D. Donovan, Drawings 10. _____ Insurance
Expense
5. _____ Land 11. _____ Accounts
Receivable
6. _____ Service Revenue 12. _____ Cash
1. BS 2. BS 3.IS 4.OE 5.BS 6. IS 7. BS 8.OE 9.BS 10.IS 11. BS 12.BS
For the accounts listed below, indicate if the normal balance of the account is a debit or
credit.
Normal Balance
Accounts Debit or Credit
1. Repairs & Maintenance __________________
2. Interest Receivable __________________
3. Prepaid Insurance __________________
4. Unearned Revenue __________________
5. Insurance Expense __________________
6. Fees Earned __________________
7. Machinery __________________
8. Notes Payable __________________
9. Land __________________
10. Owner Withdrawals __________________
1. Debit 2.Debit 3.Debit 4.Credit5.Debit 6.Credit 7.debit 8.credit9.debit 10. Debit

Indicate whether you would use a debit or a credit to record the following changes:
Debit or Credit
1. An increase in Salary Expense __________________
2. A decrease in Accounts Payable __________________
3. An increase in Prepaid Insurance __________________
4. An increase in Owner's Capital __________________
5. A decrease in Office Supplies __________________
6. An increase in Owner's Drawings __________________
7. An increase in Service Revenue __________________
8. A decrease in Accounts Receivable __________________
9. An increase in Rent Expense __________________
10. A decrease in Store Equipment __________________
1. debit 2. debit 3.debit 4.credit5. credit 6.debit 7. Credit 8. credit 9. debit 10. Credit

Martinez Company's relevant range of production is 7,500 units to 12,500

units. When it produces and sells 10,000 units, its unit costs are as
follows: (SHOW YOUR WORK)
Amount
Per Unit

Direct materials .. . .. ... ... . .. . . . . . . . . . . . .. . . . . . $8.00

Direct labour. . . .. . .. ... . .. . .. . . . . . . ... . . . . . . ... $4.50
Variable manufacturing overhead. . . .. . . . . . . . .. . .. . . $1.50
Fixed manufacturing overhead. . . . . . . . . ... . . .. . .. . . $5.00
Fixed selling expense .. . . . . . . . . . . .. . . . . . . . .. . .. . . $3.00
Fixed administrative expense . . . .. . . . . . . . . . . .. . .. . . $2.00
Sales commissions . ............ . . . . . . . . .... . . . . . $1.00
Variable administrative expense. . . . .. . . . . . . . .. . . . . . $0.50
1 For financial accounting purposes, what is the total amount of product
costs incurred to make 10,000 units?
2 For financial acoounting purposes, what is the total amount of period
costs incurred to sell 10,000 units?
3 If 8,000 units are sold, what is the variable cost per unit sold?
4 If 12,500 units are sold, what is the variable cost per unit sold?
5 If 8,000 units are sold, what is the total amount of variable costs
related to the units sold?
6 If 12,500 units are sold, what is the total amount of variable costs
related to the units sold? 2-7 If 8,000 units are produced, what is the average
fixed manufacturing cost per unit produced?
8 If 12,500 units are produced, what is the average fixed manufacturing
cost per unit produced?
9 If 8,000 units are produced, what is the total amount of fixed
manufacturing cost incurred to sup- port this level of production?
10 If 12.500 units are produced, what is the total amount of fixed
manufacturing cost incurred to support this level of production?
11 If 8,000 units are produced, what is the total amount of manufacturing
overhead cost incurred to support this level of production? What is this total
amount expressed on a per unit basis?
12 If 12,500 units are produced, what is the total amount of
manufacturing overhead cost incurred to support this level of production?
What is this total amount expressed on a per unit basis
13 If 11,000 units are produced, what are the total amounts of direct and
indirect manufacturing costs incurred to support this level of production?
1. Total product cost per unit: 8+4.5+1.5+5=19
total product cost per 10000 units: 10000 x 19 = $190,000
2. total period cost per unit: 3+2+1+0.5=6.5
total period cost for 10000 units: 10000 x 6.5=$65,000
3. Total variable cost per unit=1.5+1+0.5=$3.00
4. Total variable cost per unit: 1.5+1+0.5=$3.00 (cost remains the same no matter how many
units sold)
5.Total variable cost per unit=1.5+1+0.5=3
Total variable cost for 8000 units: 8000 x 3 = $24,000
6.Total variable cost per unit: 1.5+1+0.5=$3.00
total variable cost for 12,500 units: 12500x3=$37,500
7. Fixed manufacturing cost will remain the same no matter how many units are produced,
therefore answer is $5.00 per unit
8. Fixed manufacturing cost will remain the same no matter how many units are produced,
therefore answer is $5.00 per unit
9. Fixed manufacturing overheard: $5.00
Total fixed manufacturing cost for 8,000 units: 8000x5=$40,000
10. Fixed manufacturing overheard: $5.00
Total fixed manufacturing cost for 12,500 units: 12500x5=$62,500
11. Total manufacturing overhead = Fixed manufacturing overhead+ Variable manufacturing
overhead
Fixed manufacturing overhead for 8,000 units: 8000x5=$40,000
Variable manufacturing overhead for 8,000 units: 8000x1.5=$12,000
Total manufacturing overhead cost= 40,000+12,000=$52,000
Per unit vasis: $52,000/8,000 units=$6.50 per unit
12. Total manufacturing overhead = Fixed manufacturing overhead+ Variable manufacturing
overhead
Fixed manufacturing overhead for 12,500 units: 12500x5=$62,500
Variable manufacturing overhead for 12,500 units: 12,500x1.5=$18,750
Total manufacturing overhead cost= 62,500+18,750=$81,250
Per unit vasis: $81,250/12,500 units=$6.50 per unit
13. Direct manufacturing cost=direct materials + Direct labour
Direct Materials cost for 11,000 units: 11000x8=$88,000
Direct labour cost for 11,000 units: 11000x4.5=$49,500
Total direct manufacturing costs=$88,000 + $49,500 = $137,500
Indirect manufacturing costs=Fixed manufacturing overhead + Variable manufacturing
overhead
Fixed manufacturing overhead for 11,000 units: 11000x5=$55,000
Variable manufacturing overhead for 11,000 units: 11000x1.5=$16,500
Total indirect manufacturing costs $55,000 + $16,500=$71,500
TOTAL MANUFACTURING COST (direct and indirect) = $137,500 + $71,500 = $209,000