During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $290,000. The company produced 29,000 units, and sold 19,500 units, leaving 9,500 units in inventory at year-end. What is the value of ending inventory under absorption costing?
Homework Answers
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Unit product cost under absorption costing = DM 5 + DL 3 + VOH 4 + FOH (290,000/29,000) = 5+3+4+10 = 22 per unit Value of ending inventory = 9500 * 22 = 209,000 |
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During its first year of operations, the McCormick Company
incurred the following manufacturing costs: Direct materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $4 per unit, Direct labor, $3 per unit, Variable overhead, $3 per unit, and Fixed overhead, $342,000. The company produced 38,000 units, and sold 29,500 units, leaving 8,500 units in inventory at year-end. What is the value of ending inventory under absorption costing?
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $7 per unit, Direct labor, $5 per unit, Variable overhead, $6 per unit, and Fixed overhead, $270,000. The company produced 27,000 units, and sold 18,500 units, leaving 8,500 units in inventory at year-end. Income calculated under variable costing is determined to be $355,000. How much income is reported under absorption costing?
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct Materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct Materials, $7 per unitto be $335,, Direct labor $5 per unit, Variable overhead $6 per unit and fixed overhead, $253,000. The company produced 23000 units and sold 16,500 units leaving 6,500 in inventory at year end. Income calculated under variable costing is determined to be $335,000. How much income is reported under absorption costing?
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $390,000. The company produced 39,000 units, and sold 30,000 units, leaving 9,000 units in inventory at year-end. Income calculated under variable costing is determined to be $415,000. How much income is reported under absorption costing? Multiple Choice $415,000 $325,000 $805,000 $505,000
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $324,000. The company produced 36,000 units, and sold 28,500 units, leaving 7,500 units in inventory at year-end. Income calculated under variable costing is determined to be $400,000. How much income is reported under absorption costing? Multiple Choice $400,000 $332,500 $724,000 $467,500
1.) During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct...
1.) During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $7 per unit, Direct labor, $5 per unit, Variable overhead, $6 per unit, and Fixed overhead, $270,000. The company produced 27,000 units, and sold 18,500 units, leaving 8,500 units in inventory at year-end. What is the value of ending inventory under absorption costing? 2.) Kluber, Inc. had net income of $915,000 based on variable costing. Beginning and ending inventories were 56,500 units and...
Help Save & Exit During its first year of operations, the McCormick Company incurred the following manufacturin...
Help Save & Exit During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, 54 per unit, Direct labor, $3 per unit, Variable overhead, $3 per unit, and Fixed overhead. $342.000. The company produced 38,000 units, and sold 29,500 units, leaving 8.500 units in inventory at year-end. Income calculated under variable costing is determined to be $410,000. How much income is reported under absorption costing? Multiple Choice O $752.000 O 186,500 O $410,000 O...
Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17...
Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity-at 20,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $ 80,000 Direct labor 101,400 Variable overhead 15,600 Fixed overhead 54,600 Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Direct Materials Cost $ Direct Labor Cost $ Variable Overhead Cost $ Fixed...
Brief Exercise 6-18 Burns Company incurred the following costs during the year: direct materials $22.90 per...
Brief Exercise 6-18 Burns Company incurred the following costs during the year: direct materials $22.90 per unit; direct labor $15.10 per unit; variable manufacturing overhead $17.80 per unit; variable selling and administrative costs $11.70 per unit; fixed manufacturing overhead $122,000; and fixed selling and administrative costs $11,000. Burns produced 6,100 units and sold 6000 units. Determine the manufacturing cost per unit under (a) absorption costing and (b) variable costing. (Round answers to 2 decimal places, e.g. 52.75.) Manufacturing cost (a)...
Trio Company reports the following information for the current year, which is its first year of operations. Dir...
Trio Company reports the following information for the current
year, which is its first year of operations.
Direct materials
$
13
per unit
Direct labor
$
19
per unit
Overhead costs for the year
Variable overhead
$
45,000
per year
Fixed overhead
$
90,000
per year
Units produced this year
22,500
units
Units sold this year
16,500
units
Ending finished goods inventory in units
6,000
units
Compute the product cost per unit using absorption costing. Cost per unit of finished...
Help Save & Exit During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, 54 per unit, Direct labor, $3 per unit, Variable overhead, $3 per unit, and Fixed overhead. $342.000. The company produced 38,000 units, and sold 29,500 units, leaving 8.500 units in inventory at year-end. Income calculated under variable costing is determined to be $410,000. How much income is reported under absorption costing? Multiple Choice O $752.000 O 186,500 O $410,000 O...
Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity-at 20,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $ 80,000 Direct labor 101,400 Variable overhead 15,600 Fixed overhead 54,600 Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Direct Materials Cost $ Direct Labor Cost $ Variable Overhead Cost $ Fixed...
Brief Exercise 6-18 Burns Company incurred the following costs during the year: direct materials $22.90 per unit; direct labor $15.10 per unit; variable manufacturing overhead $17.80 per unit; variable selling and administrative costs $11.70 per unit; fixed manufacturing overhead $122,000; and fixed selling and administrative costs $11,000. Burns produced 6,100 units and sold 6000 units. Determine the manufacturing cost per unit under (a) absorption costing and (b) variable costing. (Round answers to 2 decimal places, e.g. 52.75.) Manufacturing cost (a)...
Trio Company reports the following information for the current
year, which is its first year of operations.
Direct materials
$
13
per unit
Direct labor
$
19
per unit
Overhead costs for the year
Variable overhead
$
45,000
per year
Fixed overhead
$
90,000
per year
Units produced this year
22,500
units
Units sold this year
16,500
units
Ending finished goods inventory in units
6,000
units
Compute the product cost per unit using absorption costing. Cost per unit of finished...
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