unit product cost | |||||
Absorption costing | Variable costing | ||||
DM | 10.8 | 10.8 | |||
DL | 3.6 | 3.6 | |||
VMOH | 2.16 | 2.16 | |||
16.56 | 16.56 | ||||
FMOH | 2.88 | 0 | |||
Unit product cost | 19.44 | 16.56 | |||
Dodner Company | ||||||||
Income Statement-Variable Costing | ||||||||
For the Year Ended December 31, 2020 | ||||||||
Sales | 720000 | |||||||
Variable Costs: | ||||||||
Cost of goods sold: | ||||||||
Direct Materials | 259200 | |||||||
Direct Labor | 86400 | |||||||
Variable Manufacturing overhead (24000*2.16) | 51840 | |||||||
Total Production cost | 397440 | |||||||
Less: Inventory (4000*16.56) | 66240 | 331200 | ||||||
Manufacturing Margin | 388800 | |||||||
Variable selling and administrative expenses | 43200 | |||||||
Contribution margin | 345600 | |||||||
Fixed Cost: | ||||||||
Fixed Manufacturing overhead | 69120 | |||||||
Fixed selling and administrative | 144000 | 213120 | ||||||
Net Income | 132480 | |||||||
Dodner Company | ||||||||
Income Statement-Absorption Costing | ||||||||
For the Year Ended December 31, 2020 | ||||||||
Sales | 720000 | |||||||
Cost of goods sold: | ||||||||
Direct Materials | 259200 | |||||||
Direct Labor | 86400 | |||||||
Manufacturing overhead | 120960 | |||||||
Total Production Cost | 466560 | |||||||
Less: Inventory | 77760 | 388800 | ||||||
Gross Margin | 331200 | |||||||
Selling and administrative expenses | 187200 | |||||||
Net Income | 144000 | |||||||
Dodner Company uses an absorption costing system in accounting for the single product it manufactures. The...
Dodner Company uses an absorption costing system in accounting for the single product it manufactures. The following selected data are for the year 2020: Sales (20,000 $720,000 units) Direct materials $259,200 used Direct labor $86,400 costs Variable manufacturing $25,920 overhead Fixed manufacturing $34,560 overhead Variable selling and $43,200 administrative expenses Fixed selling and $144,000 administrative expenses The company produced 24,000 units and sold 20,000 units in 2020. Direct materials and direct labor are variable costs. One unit of direct material...
Complete Absorption Costing vs. Variable Costing Income statements for Randeris Company, Year 1 & Year 2. RANDERIS COMPANY - YEAR ONE 30,000 25,000 30 $ $ 10 Number of units produced Number of units sold Unit sales price Variable costs per unit: Direct materials, direct labor variable mfg. overhead Selling & administrative expenses Fixed costs per year: Manufacturing overhead Selling & administrative expenses $ 3 $ 150,000 $100,000 RANDERIS COMPANY - YEAR TWO 20,000 25,000 5,000 30 $ Number of...
1. Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $38.30 Direct labor 13.80 Fixed factory overhead 5.30 Variable factory overhead 4.70 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing $ Variable costing...
Exercise 06-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $219 per unit. Data for its single product for its first year of operations follow Direct materials Direct labor Overhead costs 23 per unit 31 per unit 9 per unit $253,000 per year Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed 21 per unit $206,000 per year 23,000 units Units produced and sold 1. Prepare an...
Variable vs. Absorption Costing $ 50.00 No Video for this worksheet Selling price per unit Manufacturing costs Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $ 11.00 REQUIRED: Calculate the unit cost and prepare a traditional 6.00 $ 3.00 120,000 Selling and administrative expenses Variable per unit sold Fixed per year $ 4.00 70,000 Year 1 Units in beginning inventory Units produced during the year Units sold during the year Units in...
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...
value: 4.00 points Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 13 7 1 1 $ 288,000 $ 198,000 During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company's...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 10 Variable manufacturing overhead 3 Variable selling and administrative 1 Total variable cost per unit $ 18 Fixed costs per month: Fixed manufacturing overhead $ 96,000 Fixed selling and administrative 163,000 Total fixed cost per month $ 259,000 The product sells for $53 per unit. Production and sales data for July and August, the first...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $385.000 $295,000 During the year, the company produced 35,000 units and sold 17,000 units. The selling price of the company's product is $58 per unit. Required: 1. Assume that the company uses absorption...
E5-20 Comparing Full Absorption Costing and Variable Costing [LO 5S-1] The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: 3,000 2,500 350 80 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 ($225,000 - 3,000 units) Total variable selling expenses ($15 per unit sold) Total fixed general and administrative expenses 60 10 75 37,500...