Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Columbia Company Income Statement-Variable Costing[…]
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“The Southern Company manufactures a single product. Assume the following data for 19×5: Variable costs per unit: Selling and administrative $14 Production $38 Fixed costs in total: Production $140,000 Selling and administrative $ 84,000 During 19×5, 7,000 units were produced and 6,800 units were sold. Page 23 Version 1 83. The inventory carrying value of finished goods at December 31, 19×5, under variable costing would be a. The same as absorption costing. b. $6,800 greater than under absorption costing. c. $6,800 less than under absorption costing. d. $4,000 less than under absorption costing.”,”4The inventory carrying value of finished goods at December 31, 19×5:Variable Costing = 200 x 38 = $7,600Absorption Costing: = 200 x (38 + (140,000/7000) = $11,60011,600 – 7,600 = 4,000Absorption costing would be $4
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Read more“During 19×2, Krepps Company manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Fixed Overhead $240,000 Variable Overhead $200,000 Direct Labor $110,000 Direct Materials $170,000 Sales totaled $825,000 for the year, variable selling expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There were no units in the beginning inventory. 84. Under absorption costing, the inventoriable cost of one unit of product would be a. $49.65. b. $43.20. c. $36.00. d. $31.20”,”3Under absorption costing, the inventoriable cost of one unit of product:Total absorption costs = Fixed Overhead + Variable Overhead + Direct Labor +Direct Materials Total absorption costs = 240,000 + 200,000 + 110,000 + 70,000 = $ 720,000Units produced = 20,000 unitsPer unit absorption (inventories) costs = 720,000 = $36 / unit 20
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“During 19×2, Krepps Company manufactured[…]
Read more“During 19×2, Krepps Company manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Fixed Overhead $240,000 Variable Overhead $200,000 Direct Labor $110,000 Direct Materials $170,000 Sales totaled $825,000 for the year, variable selling expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There were no units in the beginning inventory. 85. Under variable costing, the company’s net income for the year would be a. $101,250 lower than under absorption costing. b. $60,000 lower than under absorption costing. c. $101,250 higher than under absorption costing. d. $60,000 higher than under absorption costing.”,”2Difference between production and sales:20,000 – 15,000 = 5,000 unitsPer unit fixed overhead = 240,000 = $12 / unit 20,000 Production > Sales Absorption Net Income > Variable Net Income By 5,000 x 12 = $60
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“During 19×2, Krepps Company manufactured[…]
Read more“Elbrege Company manufactures a single product. Assume the following data for 19×4: Fixed costs in total: Selling and Administrative $50,000 Production $75,000 Variable costs per unit: Selling and Administrative $4 Production $7 There were no units in inventory on January 1. During the year 25,000 units were produced and 20,000 units were sold. Page 24 Version 1 86. Assume that the selling price Elbrege Company’s product is $30 per unit. The company’s net income for 19×4 under variable costing would be: a. $255,000 b. $270,000 c. $200,000 d. $280,000”,”1The company’s net income for 19×4 under variable costing:Sales (20000 x 30) $600,000 Less Variable Costs: Manufacturing (20000 x 7) 140,000 Selling (20000 x 4) 80,000 220,000Contribution Margin 380,000 Less Fixed Costs: Manufacturing 75,000 Selling 50,000 125,000Net Income $255
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Read more“Kosco Corporation Income StatementþAbsorption Costing For the Month Ended March 31, 19×4 Sales (2,400 units) $48,000 Cost of goods sold: Beginning Inventory $ 1,000 Variable Cost of Goods Manufactured 25,000 Goods Available for Sale $26,000 Ending Inventory 2,000 Cost of Goods Sold 24,000 Gross Margin 24,000 Less Operating Expenses: Fixed Administrative Expense $7,200 Variable Selling Expense 9,600 Total Operating Expenses 16,800 Net Income $ 7,200 ÍÍÍÍÍÍÍ During March, the company’s variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. 87. The contribution margin per unit during March was a. $8 b. $12 c. $10 d. $3”,”1The contribution margin per unit during March:Selling price per unit (48
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Kosco Corporation Income StatementþAbsorption Costing[…]
Read more“Kosco Corporation Income StatementþAbsorption Costing For the Month Ended March 31, 19×4 Sales (2,400 units) $48,000 Cost of goods sold: Beginning Inventory $ 1,000 Variable Cost of Goods Manufactured 25,000 Goods Available for Sale $26,000 Ending Inventory 2,000 Cost of Goods Sold 24,000 Gross Margin 24,000 Less Operating Expenses: Fixed Administrative Expense $7,200 Variable Selling Expense 9,600 Total Operating Expenses 16,800 Net Income $ 7,200 ÍÍÍÍÍÍÍ During March, the company’s variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. 88. The break-even point in units for the month would be a. 600 units. b. 900 units. c. 1,017 units. d. 1,525 units.”,”4The break-even point in units:Total fixed costs = 5,000 + 7,000 = $12,200Break-even point in units = Total fixed costs = 12,200 = 1
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Read more“Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: August 14,000 units September 14,500 units October 15,500 units November 12,600 units December 11,900 units The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month’s production needs. On July 31, 2,500 yards of Material K were on hand. The cost of Material K is $.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the fourth quarter. 89. The total needs of Material K for the month of November are: a. 37,800 yards b. 44,940 yards c. 37,380 yards. d. 45,360 yards.”,”2Total needs of material K for the month of November: October November DecemberBudgeted production 15,500 12,600 11,900Per unit needs of K 3 3 3 Production Needs 46,500 37,800 35,700+ Desired Ending Inv. 7,560 7,140 — Beginning Inv. 7,560Total Needs of K for November 37
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Read more“Young Enterprises has budgeted sales in units for the next five months as follows: June 4,600 units July 7,200 units August 5,400 units September 6,800 units October 3,800 units Past experience has shown that the ending inventory for each month must be equal to 10% of the next month’s sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a Production Budget for the second quarter of the year. 90. The total number of units to be produced in July is: a. 7,740 units. b. 7,200 units. c. 7,020 units. d. 7,280 units.”,”3Total units to be produced in July: July Sales 7,200 + Desired ending inventory (5,400 x 10%) 540 7,740- Beginning inventory = Desired ending inventory for June (7200 x 10%) 720 Units to be graded in July 7
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Read more“The Yost Company makes and sells a single product, Product A. Each unit of Product A requires 1.2 hours of labor at a labor rate of 8.40 per hour. Yost Company needs to prepare a Direct Labor Budget for the second quarter of 19×6. 91. The budgeted direct labor cost per unit of Product A would be: a. $8.40. b. $7.00. c. $10.08 d. $9.60”
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