Assignment Questions

Exercise 3-3 During 2017,its first year of operations as a delivery service, Sheffield Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $195,000 in cash. 2. Borrowed $46,000 by issuing bonds. 3. Purchased delivery trucks for $51,000 cash. 4. Received $18,000 from customers for services performed. 5. Purchased supplies for $3,600 on account. 6. Paid rent of $4,700. 7. Performed services on account for $11,700. 8. Paid salaries of $28,200. 9. Paid a dividend of $11,700 to shareholders.

Part B Revolutionary Designs, Inc. Revolutionary Designs, Inc. Balance Sheets (Common Size) in $000s) As At December 31 20Y2 20Y1 Current assets Cash and equivalents Accounts receiva $ 310 95 1,194 36.6 230 7.8 221 8.6 794 311 846 288 501 15.4 452 13.9 146 4.5 1.099 33.7 611 20.8 409 13.9 156 5.3 1176 40.0 440 17.2 275 10.8 156 6.1 871 34.1 Raw materials Work in process Finished goods Total inventory Other current assets 23 0.9 36 1.1 2,639 80.9 41 1.4 2.293 78.1 Total current assets 1,909 74.7 Gross fixed assets 699 214 723 24.6 99 3.4 624 21.2 701 274 89 3.5 612 24.0 Less: Accumulated depreciation Net fixed assets 582 178 Patents and trademarks 40 1.2 2。0.7 34 1.3 TOTAL ASSETS s 3,261 1000 2,937 100.0 2,555 100.0 LIABILITIES AND EQUITY Current liabilities Current portion-LTD Notes payable Note payable Jack Newsome-subordinated $ 19 0.6 19 0.6 $ 810 24.8 200 6.1 1053 32.3 288 8.8 11 0.3 2,381 73.0 775 26.4 200 6.8 834 28.4 207 7.0 25 0.9 2.060 70.1 745 29.2 200 78 551 21.6 155 6.1 Accounts payable Accrued expenses Other current liabilities 12 0.5 1,682 65.8 Total current liabilities 169 5.8 0.1 175 6.8 Long term debt Other noncurrent liabilities 162 5.0 3 0.1 Total liabilities 2,546 2,232 1,860 wners’ equity 715 21.9 705 24.0 695 27.2 TAL LIABILITIES AND EQUITY 3,261 100.0 2,937 100.0 2,555 100.0

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: 13. If the selling price is $22 per unit, what is the contribution margin per unit sold?

Martinez Company’s relevant range of production is 7, 500 units to 12, 500 units. When it produces and soils 10, 000 units, its unit costs are as follows: 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?