For the month ended October 31st, there are no finished goods or work in process inventories...

Question

Question

For the month ended October 31st, there are no finished goods or work in process inventories at the beginning of the month fo

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Calculate operating income under absorption costing

Sales	8400
Variable cost of goods sold (3780/210*180)	3240
Variable selling and administrative expense	588
Fixed manufacturing cost (1890/210*180)	1620
Fixed selling and administrative	840
Total Cost	6288
Net income	2112

So answer is a) $2112

Add a comment

Answer 2

Similar Homework Help Questions

For the month ended October 31st, there are no finished goods or work in process inventories...

For the month ended October 31st, there are no finished goods or work in process inventories at the beginning of the month for the Lightfoot Company. Net sales $16,800 Product costs: Variable 12,600 Fixed 3,780 Selling and Administrative costs: Variable 480 Fixed 840 Units manufactured 300 Units sold 240 What is the value of ending inventory under variable costing? A. $2,520 B. $3,150 C. $1,080 D. $12,600
52. On October 31, the end of the first month of operations, Morristown & Co, prepared...

52. On October 31, the end of the first month of operations, Morristown & Co, prepared the following income statement based on absorption costing: Morristown & Co. Absorption Costing Income Statement For the Month Ended October 31 Sales (2,600 units) $117,000 Cost of goods sold: Cost of goods manufactured $ 85,500 Ending inventory (400 units) (11,400) Total cost of goods sold (74.100) Gross profit $ 42,900 Selling and administrative expenses (21.500) Operating income $ 21,400 If the fixed manufacturing costs...
On October 31, the end of the first month of operations, Morristown & Co. prepared the...

On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Morristown & Co. Absorption Costing Income Statement For the Month Ended October 31 Sales (2,600 units) $117,000 Cost of goods sold: Cost of goods manufactured $85,500 Ending inventory (400 units) (11,400) Total cost of goods sold (74,100) Gross profit $42,900 Selling and administrative expenses (21,500) Operating income $21,400 If the fixed manufacturing costs were $42,900 and the...

On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income state...

On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept: Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (8,500 units) $510,000 Variable cost of goods sold: Variable cost of goods manufactured $261,600 Inventory, October 31 (2,400 units) (57,600) Total variable cost of goods sold (204,000) Manufacturing margin $306,000 Variable selling and administrative expenses (136,000) Contribution margin $170,000 Fixed costs:...
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan...

Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 11,900 flat panel televisions, of which 10,900 were sold. Operating data for the month are summarized as follows: Sales $1,798,500 Manufacturing costs: Direct materials $928,200 Direct labor 273,700 Variable manufacturing cost 238,000 Fixed manufacturing cost 119,000 1,558,900 Selling and administrative expenses: Variable $141,700 Fixed 65,200 206,900 Required: 1. Prepare an income statement based on the absorption...
Variable Costing Income Statement On November 30, the end of the first month of operations, Weatherford...

Variable Costing Income Statement On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept: Weatherford Company Absorption Costing Income Statement For the Month Ended November 30 Sales (3,900 units) $78,000 Cost of goods sold: Cost of goods manufactured (4,600 units) $64,400 Inventory, November 30 (600 units) (8,400) Total cost of goods sold 56,000 Gross profit $22,000 Selling and administrative expenses 12,370 Income from operations $9,630 Assume...

Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yosan...

Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yosan Inc, manufactured 11,700 flat panel televisions, of which 10,800 were sold. Operating data for the month are summarired as follows: Sales $1,890,000 Manufacturing costs: Direct materials $959.400 Direct labor 292.500 Variable manufacturing cost 245,700 Faced manufacturing cost 128.700 1,626,300 Selling and administrative expenses Variable $151,200 Fixed 69,600 220,800 Required: 1. Prepare an income statement based on the absorption costing concept. Yosan Inc. Absorption Costing...
2. Haigwood Company has 120 units in Finished Goods Inventory at the beginning of the accounting...

2. Haigwood Company has 120 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haigwood produced 190 units and sold 310 units for $180 each. All units incurred $90 in variable manufacturing costs and $16 in fixed manufacturing costs. Haigwood also incurred $7,400 in Selling and Administrative Costs, all fixed. Calculate the operating income for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption...
Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending...

Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results: Sales (13,600 x $48) $652,800 Manufacturing costs (13,600 units): Direct materials 393,040 Direct labor 92,480 Variable factory overhead 43,520 Fixed factory overhead 51,680 Fixed selling and administrative expenses 14,100 Variable selling and administrative expenses 17,000 The company is evaluating a proposal to manufacture 15,200 units instead of 13,600 units, thus creating an Inventory, October 31...

Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating...

Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: 1 Sales (28,800 × $80) $2,304,000.00 2 Manufacturing costs (28,800 units): 3 Direct materials 1,267,200.00 4 Direct labor 316,800.00 5 Variable factory overhead 172,800.00 6 Fixed factory overhead 221,760.00 7 Fixed selling and administrative expenses 28,800.00 8 Variable selling and administrative expenses 35,800.00 The company is evaluating a proposal to manufacture 36,000 units instead of 28,800 units, thus creating an ending inventory of...

For the month ended October 31st, there are no finished goods or work in process inventories...

Homework Answers