Bright Lighting Company had net income for the first 10 months of the current year of...
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 (40,000 units * $4110 per unit) Cost of goods sold (40,000 units * $22 per unit) $1,644,000 880,000 Gross margin Selling and administrative expenses 764,000 460,000 Net operating income $304,000 The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $22...
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $63 per unit) Cost of goods sold (@ $43 per unit) Gross margin Selling and administrative expenses* Net operating income Year 1 $ 945,000 645,000 300,000 294,000 $ 6,000 Year 2 $1,575,000 1,075,000 500,000 324,000 $ 176,000 *$3 per unit variable: $249,000 fixed each year. The company's $43 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement Sales (40,000 units × $44.10 per unit) $ 1,764,000 Cost of goods sold (40,000 units × $24 per unit) 960,000 Gross margin 804,000 Selling and administrative expenses 420,000 Net operating income $ 384,000 The company’s selling and administrative expenses consist of $300,000 per year in fixed expenses and $3 per unit sold in variable expenses. The...
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (e $63 per unit) Cost of goods sold ( 540 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $1,071,000 680,000 391.000 301.000 $ 190,0001 Year 2 $1,701,000 1,080,000 621,000 331,000 $ 290,000 ances *$3 per unit variable: $250,000 fixed each year. The company's $40 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing...
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 3 Year 2 Inventories Beginning (units) Ending (units) Variable costing net operating income 210 160 190 230 160 190 $300,000 $279,000 $260,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Required: 1....
During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $62 per unit) $ 1,054,000 $ 1,674,000 Cost of goods sold (@ $40 per unit) 680,000 1,080,000 Gross margin 374,000 594,000 Selling and administrative expenses* 300,000 330,000 Net operating income $ 74,000 $ 264,000 * $3 per unit variable; $249,000 fixed each year. The company’s $40 unit product cost is computed as follows: Direct materials $ 7...
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (40,000 units X $41.60 per unit) Cost of goods sold (40,000 units X $24 per unit) Gross margin Selling and administrative expenses Net operating income $1,664,000 960,000 704,000 460,000 $ 244,000 The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $24...
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...
During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows: $ Sales (@ $60 per unit) Cost of goods sold (@ $39 per unit) Gross margin Selling and administrative expenses* Net operating income Year 1 $1,020,000 663,000 357,000 299,000 $ 58,000 Year 2 1,620,000 1,053,000 567,000 329,000 $ 238,000 *$3 per unit variable; $248,000 fixed each year. The company's $39 unit product cost is computed as follows: $ Direct materials Direct labor...
Problem 7-22 Variable Costing Income Statements; Income Reconciliation [LO7-1, LO7-2, LO7-3] Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 7 Direct labor 10 Variable manufacturing overhead 5 Variable selling and administrative 3 Total variable cost per unit $ 25 Fixed costs per month: Fixed manufacturing overhead $ 315,000 Fixed selling and administrative 245,000 Total fixed cost per month $ 560,000 The product sells for $60 per...