Homework Answers
| Part- a: The Absorption Costing Income Statement | |||
| Unit Produced | 1000 | 1250 | 1500 |
| No. of Unit Sold | 1000 | 1000 | 1000 |
| Sales @$315 | $315,000 | $315,000 | $315,000 |
| Less: Cost of Goods sold @ As per workin gnote-1 | $279,700 | $241,300 | $215,700 |
| Gross Margin | $35,300 | $73,700 | $99,300 |
| Net operating income | $35,300 | $73,700 | $99,300 |
| Part-b The Variable Costing Income Statement | |||
| 1000 | 1250 | 1500 | |
| No. of Unit Sold | 1000 | 1000 | 1000 |
| Sales @$315 | $315,000 | $315,000 | $315,000 |
| Less: Variable cost | |||
| variable Manaufacturing cost @$87.70 | $87,700.00 | $87,700.00 | $87,700.00 |
| Contribution margin | $227,300.00 | $227,300.00 | $227,300.00 |
| Fixed expense: | |||
| Fixed Manufacturing cost | $192,000.00 | $192,000.00 | $192,000.00 |
| Net operating Income | $35,300.00 | $35,300.00 | $35,300.00 |
| Working Note-1 The Absorption Costing Unit Product Cost | |||
| Unit Produced | 1000 | 1250 | 1500 |
| Variable Manufacturing cost | $87.70 | $87.70 | $87.70 |
| Fixed
Manufacturing cost (192000/1000, 1250,1500) |
$192.00 | $153.60 | $128.00 |
| Unit Product cost | $279.70 | $241.30 | $215.70 |
| Working Note-2 Compuation of Unit Product cost- Variable Costing | |
| $ | |
| Direct Material | $17.30 |
| Direct labour | $70.40 |
| Variable Product cost | $87.70 |
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Benson Glass Company makes stained glass lamps. Each lamp that it sells for $315.00 per lamp...
Benson Company makes and sells products with variable costs of $41 each. Benson incurs annual fixed...
Benson Company makes and sells products with variable costs of $41 each. Benson incurs annual fixed costs of $27,300. The current sales price is $62. Problem 3-23A Part a Required The following requirements are interdependent. For example, the $6,300 desired profit introduced in Requirement calso applies to subsequent requirements. Likewise, the $53 sales price introduced in Requirement d applies to the subsequent requirements. a. Determine the contribution margin per unit. b. Determine the break-even point in units and in dollars. Prepare an income statement...
Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: 10,400 9,400 1,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 63 40 14 134 $ 343,200 520,000 $ 863,200 Required:...
Rey Company's single product sells at a price of $227 per unit. Data for its single...
Rey Company's single product sells at a price of $227 per unit. Data for its single product for its first year of operations follo 31 per unit 39 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 13 per unit $ 420,000 per year 29 per unit $ 222,000 per year 28,880 units 1. Prepare an income statement for the year using absorption costing 2....
Exercise 19-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells...
Exercise 19-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $230 per unit. Data for its single product for its first year of operations follow. 34 per unit 42 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 10 per unit $ 318,000 per year $ 32 per unit 32 pe $ 228,000 per year...
Rey Company's single product sells at a price of $236 per unit. Data for its single...
Rey Company's single product sells at a price of $236 per unit. Data for its single product for its first year of operations follow. Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 40 per unit 48 per unit 4 per unit $ 141,000 per year $ 38 per unit $ 240,000 per year 23,500 units 1. Prepare an income statement for the year using absorption costing...
5 Rey Company's single product sells at a price of $235 per unit. Data for its...
5 Rey Company's single product sells at a price of $235 per unit. Data for its single product for its first year of operations follow 714 Dots 5 5 39 per unit 47 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 5 S per unit $ 168,000 per year eBook $ 37 per unit $ 238,000 per year 24,000 units HIE 1. Prepare an...
Daniels Co. produced 150,000 lamps during the past calendar year. Daniels had 2,500 floor lamps in...
Daniels Co. produced 150,000 lamps during the past calendar year. Daniels had 2,500 floor lamps in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 floor lamps in finished goods inventory. The lamps sell for $50 each. Daniels accounting records provide the following information for the past year: Purchases of direct materials $1,675,000 Direct materials inventory, January 1 380,000 Direct materials inventory, December 31 327,000 Direct labor 2,000,000 Indirect labor...
Exercise 06-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells...
Exercise 06-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $232 per unit. Data for its single product for its first year of operations follow. $ $ 36 per unit 44 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold $ 8 per unit $255,000 per year 34 per unit $232,000 per year 25,500 units...
Daniels Co. produced 150,000 lamps during the past calendar year. Daniels had 2,500 floor lamps in finished goods inven...
Daniels Co. produced 150,000 lamps during the past calendar year. Daniels had 2,500 floor lamps in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 floor lamps in finished goods inventory. The lamps sell for $50 each. Daniels accounting records provide the following information for the past year: Purchases of direct materials $1,675,000 Direct materials inventory, January 1 $380,000 Direct materials inventory, December 31 $327,000 Direct labor $2,000,000 Indirect labor...
Variable vs. Absorption Costing Selling price per unit 50.00 No Video for this worksheet $ Mandturing...
Variable vs. Absorption Costing Selling price per unit 50.00 No Video for this worksheet $ Mandturing cost Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 11.00 6.00 REQUIRED: Calculate the unit cost and prepare a traditional Income statements using absorption costing. Calculate the unit cost and prepare a variable costing Income statement. Check your work using the values on the check figure tab. $ 120,000 Selling and administrative expenses Variable per unit...
Benson Company makes and sells products with variable costs of $41 each. Benson incurs annual fixed costs of $27,300. The current sales price is $62. Problem 3-23A Part a Required The following requirements are interdependent. For example, the $6,300 desired profit introduced in Requirement calso applies to subsequent requirements. Likewise, the $53 sales price introduced in Requirement d applies to the subsequent requirements. a. Determine the contribution margin per unit. b. Determine the break-even point in units and in dollars. Prepare an income statement...
Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: 10,400 9,400 1,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 63 40 14 134 $ 343,200 520,000 $ 863,200 Required:...
Rey Company's single product sells at a price of $227 per unit. Data for its single product for its first year of operations follo 31 per unit 39 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 13 per unit $ 420,000 per year 29 per unit $ 222,000 per year 28,880 units 1. Prepare an income statement for the year using absorption costing 2....
Exercise 19-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $230 per unit. Data for its single product for its first year of operations follow. 34 per unit 42 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 10 per unit $ 318,000 per year $ 32 per unit 32 pe $ 228,000 per year...
Rey Company's single product sells at a price of $236 per unit. Data for its single product for its first year of operations follow. Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 40 per unit 48 per unit 4 per unit $ 141,000 per year $ 38 per unit $ 240,000 per year 23,500 units 1. Prepare an income statement for the year using absorption costing...
5 Rey Company's single product sells at a price of $235 per unit. Data for its single product for its first year of operations follow 714 Dots 5 5 39 per unit 47 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 5 S per unit $ 168,000 per year eBook $ 37 per unit $ 238,000 per year 24,000 units HIE 1. Prepare an...
Exercise 06-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $232 per unit. Data for its single product for its first year of operations follow. $ $ 36 per unit 44 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold $ 8 per unit $255,000 per year 34 per unit $232,000 per year 25,500 units...
Variable vs. Absorption Costing Selling price per unit 50.00 No Video for this worksheet $ Mandturing cost Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 11.00 6.00 REQUIRED: Calculate the unit cost and prepare a traditional Income statements using absorption costing. Calculate the unit cost and prepare a variable costing Income statement. Check your work using the values on the check figure tab. $ 120,000 Selling and administrative expenses Variable per unit...
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