Homework Answers
| Q1) answer : "A) Absorption costing and variable costing will produce the | ||||
| same net income if all of the units produced are sold." | ||||
| Q2) | ||||
| Absorption costing income statement: | ||||
| sales | 720000 | |||
| less:Manuf. Costs: | ||||
| DM | 318000 | |||
| DL | 88000 | |||
| V OH | 62000 | |||
| Fixed OH | 94000 | |||
| Total Manuf. Costs | 562000 | |||
| Less:FOH portion of CS | -9400 | 94000*200/2000 | ||
| COGS | 552600 | |||
| GP | 167400 | |||
| Less:Selling & Admin costs: | ||||
| VC | 32400 | |||
| Fixed | 56000 | |||
| total S&Ad costs | 88400 | |||
| NOI | 79000 | |||
| Answers: | ||||
| Cost of goods sold per unit = 552600/1800 = 307 | ||||
| Total sales : 13) $720000 | ||||
| Operating Income : $79000 | ||||
| Gross Profit : $167400 | ||||
| Total cost of goods sold= $552600 | ||||
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Question 1 (2 points) Which of the following is true regarding the absorption costing method of...
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Which of the following is true of absorption costing? It expenses marketing costs as cost of...
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E5-20 Comparing Full Absorption Costing and Variable Costing [LO 5S-1] The following information pertains to the...
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Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats...
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Variable and Absorption Costing Chandler Company sells its product for $100 per unit. Variable manufacturing costs...
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Complete Absorption Costing vs. Variable Costing Income statements for Randeris Company, Year 1 & Year 2....
Complete Absorption Costing vs. Variable Costing Income
statements for Randeris Company, Year 1 & Year 2.
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#1 #2 Absorption-Costing Income Statement During the most recent year, Osterman Company had the following data:...
#1
#2
Absorption-Costing Income Statement
During the most recent year, Osterman Company had the following
data:
Units in beginning inventory
—
Units produced
10,000
Units sold ($47 per unit)
9,300
Variable costs per unit:
Direct materials
$9
Direct labor
$6
Variable overhead
$4
Fixed costs:
Fixed overhead per unit produced
$5
Fixed selling and administrative
$138,000
Required:
1. Calculate the cost of goods sold under
absorption costing.
$
2. Prepare an income statement using absorption
costing. Enter amounts as positive...
Exercise 06-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells...
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QUESTION 1 Which of the following is not true about the variable costing and absorption costing...
QUESTION 1 Which of the following is not true about the variable costing and absorption costing methods? Absorption costing treats fixed costs as period costs while variable costing treats it as a product cost. Absorption costing allocates all manufacturing costs as product costs while variable costing only uses direct manufacturing costs. Variable costing and absorption costing both treat selling and administrative costs as period costs. Variable costing is designed to capture only variable overhead costs while absorption costing's meant to...
Coyote Company manufactures a very popular product called the Roadrunner. Information on 2019's total production of 2,000 Roadrunners is as follows: Direct materials $318,000 Direct labor 88,000 Variable overhead 62,000 Fixed overhead 94,000 Total manufacturing $562.000 costs Coyote also incurred variable selling and administrative costs of $18 per unit sold and fixed selling and administrative costs totaling $56,000. During 2019 Coyote sold 1,800 Roadrunners for $400 each. Calculate the following items for Coyote's variable costing income statement: 1. $101 2....
Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats direct manufacturing costs as a period cost. It includes fixed manufacturing overhead as an inventoriable D) It treats indirect manufacturing costs as a period cost. Answer: 17. Which of the following is true of variable costing? A) It expenses administrative costs as cost of goods sold. B) It treats direct manufacturing costs as a product cost. It includes fixed manufacturing...
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...
Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats direct manufacturing costs as a period cost. It includes fixed manufacturing overhead as an inventoriable D) It treats indirect manufacturing costs as a period cost. Answer: 17. Which of the following is true of variable costing? A) It expenses administrative costs as cost of goods sold. B) It treats direct manufacturing costs as a product cost. It includes fixed manufacturing...
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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
#2
Absorption-Costing Income Statement
During the most recent year, Osterman Company had the following
data:
Units in beginning inventory
—
Units produced
10,000
Units sold ($47 per unit)
9,300
Variable costs per unit:
Direct materials
$9
Direct labor
$6
Variable overhead
$4
Fixed costs:
Fixed overhead per unit produced
$5
Fixed selling and administrative
$138,000
Required:
1. Calculate the cost of goods sold under
absorption costing.
$
2. Prepare an income statement using absorption
costing. Enter amounts as positive...
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...
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