Figure 8-4. The following information pertains to Mayberry Corporation: Beginning inventory 1,000 units Ending inventory 6,000...
Figure 8-4. The following information pertains to Mayberry Corporation: Beginning inventory 1,000 units Ending inventory 6,000 units Direct labor per unit $40 Direct materials per unit 20 Variable overhead per unit 10 Fixed overhead per unit 30 Variable selling and admin. costs per unit 6 Fixed selling and admin. costs per unit 14 Refer to Figure 8-4. Absorption costing income would be ____ variable costing income. a. $240,000 less than b. $150,000 greater than c. $150,000 less than d. $240,000 greater than
Homework Answers
Answer: B) $150,000 Greater than
Units Added during the Period = 6,000-1,000 = 5,000
Increase in Operating income in Absorption Costing = 5,000 * 30 FOH per Unit = $150,000
absorption Costing net income is $150,000 Greater than the Variable costing net income
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Figure 8-4. The following information pertains to Mayberry
Corporation: Beginning inventory 1,000 units Ending inventory 6,000...
The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: 3,000...
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...
Selling price $130 (same information as on page 6) Units in beginning inventory Units produced Units...
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During the most recent year, Osterman Company had the following data: Units in beginning inventory Units...
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 Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced 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 numbers. Osterman Company Income Statement under Absorption Costing For the Most...
During the most recent year, Bledsoe Corp. had the following data: Beginning inventory in units -...
During the most recent year, Bledsoe Corp. had the following data: Beginning inventory in units - Units produced 14,500 Units sold ($120 per unit) 8,200 Variable costs per unit: Direct materials $ 13 Direct labor $ 16 Variable overhead $8 Fixed costs: Fixed overhead per unit produced $ 23 Fixed selling and administrative $ 135,000 Required: A. How many units are in ending inventory? B. Using absorption costing, calculate the per-unit product cost. What is the value of ending inventory?...
During the most recent year, Bledsoe Corp. had the following data: Beginning inventory in units -...
During the most recent year, Bledsoe Corp. had the following data: Beginning inventory in units - Units produced 14,500 Units sold ($120 per unit) 8,200 Variable costs per unit: Direct materials $ 13 Direct labor $ 16 Variable overhead $8 Fixed costs: Fixed overhead per unit produced $ 23 Fixed selling and administrative $ 135,000 Required: A. How many units are in ending inventory? B. Using absorption costing, calculate the per-unit product cost. What is the value of ending inventory?...
Inventory Valuation under Absorption and Variable Costing The following information pertains to Synergy Inc. for last...
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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...
During the most recent year, Osterman Company had the following data: Units in beginning inventory ---...
During the most recent year, Osterman Company had the following data: Units in beginning inventory --- Units produced 11,350 Units sold ($50 per unit) 9,400 Variable costs per unit: Direct materials $10 Direct labor $5 Variable overhead $3 Fixed costs: Fixed overhead per unit produced $4 Fixed selling and administrative $138,500 1. Calculate the cost of goods sold under absorption costing. The cost of goods sold under the absorption costing method is ---------------------- 2. Prepare an income statement using absorption...
The following information pertains to the first year of operation for Crystal Cold Coolers Inc. Number...
The following information pertains to the first year of operation for Crystal Cold Coolers Inc. 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 (515 per unit sold) Total fixed general and administrative expenses 3.000 2,500 $ 350 $ 80 $ 60 $ 10 $ 75 $ 37,500 $ 65,000 Required: Prepare Crystal...
E5-20 Comparing Full Absorption Costing and Variable Costing [LO 5S-1] The following information pertains to the...
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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...
Selling price $130 (same information as on page 6) Units in beginning inventory Units produced Units sold Units in ending inventory 6,100 6,000 100 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead $25 Variable selling and administrative S10 S33 530 Fixed costs: Fixed manufacturing overhead$91,500 Fixed selling and administrative $98,000 f. What is the net operating income for the month under absorption costing? i. Reconcile and explain any difference in the net income under the two different...
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 Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced 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 numbers. Osterman Company Income Statement under Absorption Costing For the Most...
Inventory Valuation under Absorption and Variable Costing The following information pertains to Synergy Inc. for last year: Beginning inventory in units 5,500 Units produced 20,000 23,700 Units sold Costs per unit: Direct materials $10.00 Direct labour $4.00 Variable overhead $1.75 $4.15 Fixed overhead $3.00 Variable selling expenses Fixed selling and administrative expenses * Fixed overhead totals $83,000 per year. $24,300 Required: 1. Calculate the cost of one unit of product under absorption costing. Round your answer to the nearest cent....
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...
The following information pertains to the first year of operation for Crystal Cold Coolers Inc. 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 (515 per unit sold) Total fixed general and administrative expenses 3.000 2,500 $ 350 $ 80 $ 60 $ 10 $ 75 $ 37,500 $ 65,000 Required: Prepare Crystal...
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...
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