1. Compute the following measures for year one. Show work and explain how to get each answer.
Homework Answers
| Year-1 | Year-2 | |
| Contribution margin | $10,800.00 | $13,500.00 |
| Gross Margin | $12,000.00 | $14,800.00 |
| Operating Income by Variable costing | $6,800.00 | $9,500.00 |
| Operating Income by absorption costing | $7,000.00 | $9,300.00 |
| Income Statement A- Absorption Costing | ||
| Year | Year-1 | Year-2 |
| Sale Unit | 400 | 500 |
| Sales (y) | $16,000.00 | $20,000.00 |
| Less: Cost of Goods Sold | ||
| Beginning Inventory (a) | $0.00 | $1,000.00 |
| Variable manufacturing cost (8X 500) (400X8) (b) | $4,000.00 | $3,200.00 |
| Fixed manufacturing Cost © | $1,000.00 | $1,000.00 |
| Total Cost of Goods Available for Sale (d=a+b+c) | $5,000.00 | $5,200.00 |
| Less:
Ending Inventory (c) (5000/500X100) |
-$1,000.00 | |
| Cost of goods Sold (d=b-c) | $4,000.00 | $5,200.00 |
| Gross Magin (y-d) | $12,000.00 | $14,800.00 |
| Less: Selling & Admin Expense | ||
| Variable Cost of S&A Expense | $2,000.00 | $2,500.00 |
| Fixed Cost of &A Expense | $3,000.00 | $3,000.00 |
| Net Operating Income | $7,000.00 | $9,300.00 |
| Income Statement As per - Variable Costing | ||
| Year | Year-1 | Year-2 |
| Sale Unit | 400 | 500 |
| Sales (y) | $16,000.00 | $20,000.00 |
| Less: Variable Cost of Goods Sold | ||
| Beginning Inventory (a) | $0.00 | $800.00 |
| Variable manufacturing cost (8X 500) (400X8) (b) | $4,000.00 | $3,200.00 |
| Total Cost of Goods Available for Sale (c=A=b) | $4,000.00 | $4,000.00 |
| Less: Ending Inventory (100*8) (d) | -$800.00 | |
| LessVariable Cost of goods Sold (e=c-d) | $3,200.00 | $4,000.00 |
| Manufacturing Margin(y-e) | $12,800.00 | $16,000.00 |
| Less: Variable cost of Selling & Admin Expense | $2,000.00 | $2,500.00 |
| Contribution Amrgin | $10,800.00 | $13,500.00 |
| Less: Fixed Expense | ||
| Fixed Manufacturing Overhead | $1,000.00 | $1,000.00 |
| Fixed S&A Expense | $3,000.00 | $3,000.00 |
| Operating Income | $6,800.00 | $9,500.00 |
| Reconciliation | ||
| Year-1 | Year-2 | |
| Income as per variable costing | $6,800.00 | $9,500.00 |
| Add:/(less) : Deferred fixed Overhead in Ending Inventory (1000/500*100) | $200.00 | -$200.00 |
| Income as per absorption costing | $7,000.00 | $9,300.00 |
Add Answer to:
1. Compute the following measures for year one. Show work and
explain how to get each...
Maher Corporation, which has only one product, has provided the following data concerning its most recent month of opera...
Maher Corporation, which has only one product, has provided the
following data concerning its most recent month of operations:
Selling price
$
187
Units in beginning inventory
0
Units produced
3,180
Units sold
2,810
Units in ending inventory
370
Variable costs per unit:
Direct materials
$
52
Direct labor
$
58
Variable manufacturing overhead
$
15
Variable selling and administrative expense
$
17
Fixed costs:
Fixed manufacturing overhead
$
111,300
Fixed selling and administrative
$
8,430
Required:
a. What is...
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Abe Company, which has only one product, has provided the following data concerning its most + recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead $156.600 Fixed selling and administrative $151,200 1. Using variable costing method, prepare the income statement for the year. Sales revenue Variable expenses Contribution margin Fixed expenses...
Show all supporting computations. 1. Hurst Co, manufacturers and sells a single product. Price and cost...
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The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: 3,000...
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The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: ...
The following information pertains to the first year of
operation for Crystal Cold Coolers Inc.:
Number of units produced
3,000
Number of units sold
2,400
Unit sales price
$
335
Direct materials per unit
$
55
Direct labor per unit
$
50
Variable manufacturing overhead per unit
$
13
Fixed manufacturing overhead per unit ($195,000/3,000
units)
$
65
Total variable selling expenses ($13 per unit sold)
$
31,200
Total fixed general and administrative expenses
$
60,000
Required:
Prepare Crystal...
Packer Company, which has only one product, has provided the following data concerning its most recent...
Packer Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 95 Units in beginning inventory 350 Units produced 2,100 Units sold 1,720 Units in ending inventory 730 Variable cost per unit: Direct materials $ 24 Direct labor $ 21 Variable manufacturing overhead $ 1 Variable selling and administrative $ 13 Fixed costs: Fixed manufacturing overhead $ 52,500 Fixed selling and administrative $ 5,160 The company produces the same...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent...
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Requirea: 1. Prepare the company's income statement in the contribution format using variable costing. Whitman Company...
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Maher Corporation, which has only one product, has provided the
following data concerning its most recent month of operations:
Selling price
$
187
Units in beginning inventory
0
Units produced
3,180
Units sold
2,810
Units in ending inventory
370
Variable costs per unit:
Direct materials
$
52
Direct labor
$
58
Variable manufacturing overhead
$
15
Variable selling and administrative expense
$
17
Fixed costs:
Fixed manufacturing overhead
$
111,300
Fixed selling and administrative
$
8,430
Required:
a. What is...
Abe Company, which has only one product, has provided the following data concerning its most + recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead $156.600 Fixed selling and administrative $151,200 1. Using variable costing method, prepare the income statement for the year. Sales revenue Variable expenses Contribution margin Fixed expenses...
Show all supporting computations. 1. Hurst Co, manufacturers and sells a single product. Price and cost data regarding this product are as follows: Selling price.. Variable manufacturing costs.............. Variable selling and administrative expenses........ Fixed manufacturing overhead....... Fixed selling and administrative expenses......... $40 per unit $20 per unit $6 per unit $208,000 per year $324.000 per year a. What is Hurst's Contribution Margin per unit? What is their contribution Margin Ratio? b. What is Hurst's break-even point in Units and in...
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: Whitman Company Income Statement Sales (39,000 units * $42.10 per unit) Cost of goods sold (39,000 units * $22 per unit) $1,641,900 858,000 Gross margin Selling and administrative expenses 783,900 448,500 Net operating income $335,400 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $22...
The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: 3,000 2,600 335 55 Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($240,000/3,000 units) Total variable selling expenses ($14 per unit sold) Total fixed general and administrative expenses 60 14 80 $ 36,400 $ 64,000 A tA A A A A A Full Absorption...
The following information pertains to the first year of
operation for Crystal Cold Coolers Inc.:
Number of units produced
3,000
Number of units sold
2,400
Unit sales price
$
335
Direct materials per unit
$
55
Direct labor per unit
$
50
Variable manufacturing overhead per unit
$
13
Fixed manufacturing overhead per unit ($195,000/3,000
units)
$
65
Total variable selling expenses ($13 per unit sold)
$
31,200
Total fixed general and administrative expenses
$
60,000
Required:
Prepare Crystal...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 108 770 2,400 2,850 320 $ $ $ $ 11 23 24 $57,600 $ 5,700 The company produces the same number of...
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