Homework Answers
Solution:
| Income Statement - Variable Costing - Dowell Company | ||
| Particulars | 2018 | 2019 |
| Sales | $10,12,000 | $18,92,000 |
| Variable Costs: | ||
| Direct Material ($4*units sold) | $92,000 | $1,72,000 |
| Direct Labor ($9*Units sold) | $2,07,000 | $3,87,000 |
| Variable Overhead ($6*units sold) | $1,38,000 | $2,58,000 |
| Variable Selling and administrative expenses ($2*units sold) | $46,000 | $86,000 |
| Total Variable Costs | $4,83,000 | $9,03,000 |
| Contribution Margin | $5,29,000 | $9,89,000 |
| Fixed Expenses: | ||
| Fixed manufacturing overhead | $3,30,000 | $3,30,000 |
| Fixed Selling & Administrative Expenses | $2,45,000 | $2,45,000 |
| Net Operating Income | -$46,000 | $4,14,000 |
| Reconciliation of Net Operating income under absorption costing & Variable Costing - March 31 | ||
| Particulars | 2018 | 2019 |
| Variable Costing Income (Loss) | -$46,000 | $4,14,000 |
| Add : Fixed manufacturing overhead deferred in ending inventory ($10*10000) | $1,00,000 | $0 |
| Less: Fixed manufacturing overhead released in beginning inventory ($10*10000) | $0 | -$1,00,000 |
| Absorption Costing Income (Loss) | $54,000 | $3,14,000 |
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variable selling and ausura Live expenses 32 pa unit) Fixed selling and administrative expenses Total selling...
Required information (The following information applies to the questions displayed below) Dowell Company produces a single...
Required information (The following information applies to the questions displayed below) Dowell Company produces a single product. It income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936,000 Cost of goods sold ($29 per unit) 696,000 1,276,000 Gross margin 360,000 660,000 Selling and administrative expenses 299.000 344,000 Net Income 61,000 $ 316,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($44 per unit) cout of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $880,000 $1,760,000 580,000 1,160,000 300,000 600,000 285,000 325,000 $ 15,000 $275,000 Additional Information a. Sales and production data for these first two years follow. Units produced 2018 30,000...
Required information (The following information applies to the questions displayed below. Dowell Company produces a single...
Required information (The following information applies to the questions displayed below. Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $1,164,000 $2,064,000 759,000 1,419,000 345,000 645,000 297,500 347,500 $ 47,500 $ 297,500 Additional Information a. Sales and production data for these first two years follow. Units produced Units...
Required information The following information applies to the questions displayed below) Dowell Company produces a single...
Required information The following information applies to the questions displayed below) Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936.000 Cost of goods sold ($29 per unit 696,000 1,275,000 Gross margin 360,000 660,000 Selling and administrative expenses 299,000 344.000 Net income $ 61,000 $316,000 Additional information a. Sales and production data for these first two years follow Units produced Units sold...
Dowell Company produces a single product. Its income statements under absorption costing for its first two...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $1,104,000 $2,064,000 759,000 1,419,000 345,000 645,000 286,000 326,000 $ 59,000 $ 319,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 33,000 23,000 2017 33,000 43,000 b. Variable cost per...
Dowell Company produces a single product. Its income statements under absorption costing for its first two...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 20162017 $1,152,000 $2,112,000 Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 92,000 1,452,000 360,000 660,000 305,000 355,000 $55,000 305,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016-1120171 34,000 34,000 24,000 44,000 b. Variable cost per unit and total fixed...
Dowell Company produces a single product. Its income statements under absorption costing for its first two...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 20182019Sales ($46 per unit)$1,150,000$2,070,000Cost of goods sold ($31 per unit)775,0001,395,000Gross margin375,000675,000Selling and administrative expenses301,250346,250Net income$73,750$328,750Additional Information a. Sales and production data for these first two years follow. 20182019Units produced35,00035,000Units sold25,00045,000b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials$6Direct labor8Variable overhead7Fixed overhead ($300,000//30, 000 units )10Total...
Dowell company produces a single po Dowell Company produces a single product. Its income statements under...
Dowell company produces a single po Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.20182019Sales ($46 per unit)$920,000$1,840,000Cost of goods sold ($31 per unit)620,0001,240,000Gross margin300,000600,000Selling and administrative expenses290,000340,000Net income$10,000$260,000Additional Information a. Sales and production data for these first two years follow. 20182019Units produced30,00030,000Units sold20,00040,000b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials$5Direct labor9Variable...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of oper...
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($46 per unit)
$
1,104,000
$
2,024,000
Cost of goods sold ($31 per unit)
744,000
1,364,000
Gross margin
360,000
660,000
Selling and administrative expenses
287,000
322,000
Net income
$
73,000
$
338,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017
Units produced
34,000
34,000
Units sold
24,000
44,000
Variable cost per...
Problem 19-1A Part 1 1. Complete income statements for the company for each of its first...
Problem 19-1A Part 1 1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) Required Information Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3 [The following Information applies to the questions displayed below.] Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow Sales...
Required information (The following information applies to the questions displayed below) Dowell Company produces a single product. It income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936,000 Cost of goods sold ($29 per unit) 696,000 1,276,000 Gross margin 360,000 660,000 Selling and administrative expenses 299.000 344,000 Net Income 61,000 $ 316,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($44 per unit) cout of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $880,000 $1,760,000 580,000 1,160,000 300,000 600,000 285,000 325,000 $ 15,000 $275,000 Additional Information a. Sales and production data for these first two years follow. Units produced 2018 30,000...
Required information (The following information applies to the questions displayed below. Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $1,164,000 $2,064,000 759,000 1,419,000 345,000 645,000 297,500 347,500 $ 47,500 $ 297,500 Additional Information a. Sales and production data for these first two years follow. Units produced Units...
Required information The following information applies to the questions displayed below) Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936.000 Cost of goods sold ($29 per unit 696,000 1,275,000 Gross margin 360,000 660,000 Selling and administrative expenses 299,000 344.000 Net income $ 61,000 $316,000 Additional information a. Sales and production data for these first two years follow Units produced Units sold...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $1,104,000 $2,064,000 759,000 1,419,000 345,000 645,000 286,000 326,000 $ 59,000 $ 319,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 33,000 23,000 2017 33,000 43,000 b. Variable cost per...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 20162017 $1,152,000 $2,112,000 Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 92,000 1,452,000 360,000 660,000 305,000 355,000 $55,000 305,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016-1120171 34,000 34,000 24,000 44,000 b. Variable cost per unit and total fixed...
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($46 per unit)
$
1,104,000
$
2,024,000
Cost of goods sold ($31 per unit)
744,000
1,364,000
Gross margin
360,000
660,000
Selling and administrative expenses
287,000
322,000
Net income
$
73,000
$
338,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017
Units produced
34,000
34,000
Units sold
24,000
44,000
Variable cost per...
Problem 19-1A Part 1 1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) Required Information Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3 [The following Information applies to the questions displayed below.] Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow Sales...
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