Solution 1a:
Computation of Unit Product Cost - Variable Costing | |
Particulars | Per unit |
Unit Product Cost: | |
Direct material | $7.10 |
Direct Labor | $7.80 |
Variable manufacturing overhead | $1.60 |
Unit product cost | $16.50 |
Solution 1b:
Computation of Unit Product Cost - Absorption Costing | |
Particulars | Per unit |
Unit Product Cost: | |
Direct material | $7.10 |
Direct Labor | $7.80 |
Variable manufacturing overhead | $1.60 |
Fixed
manufacturing overhead ($252,000 / 31500) |
$8.00 |
Unit Product Cost | $24.50 |
Tami Creations | ||
Full Absorption income statement For the Quarter ended March 31 |
||
Particulars | Details | Amount |
Sales | $1,140,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (21500*$24.50) | $771,750.00 | |
Add: Opening Inventory | $0.00 | |
Less: Ending Inventory (3000*$24.50) | $73,500.00 | $698,250.00 |
Gross Profit | $441,750.00 | |
Variable Selling & Administrative Expenses | $193,800.00 | |
Fixed Selling & Administrative Expenses | $235,950.00 | |
Net Operating Income | $12,000.00 |
Solution 1c:
Reconciliation of Net Operating income under absorption costing & Variable Costing - March 31 | |
Particulars | First year |
Net Operating Income - Variable Costing | -$12,000.00 |
Add : Fixed manufacturing overhead deferred in Ending inventory ($8*3000) | $24,000.00 |
Less: Fixed manufacturing overhead released in beginning inventory | $0.00 |
Net Operating Income - Absorption Costing | $12,000.00 |
Solution 3a:
Tami Creations | ||
Contribution margin income statement For the Quarter ended June 30 |
||
Particulars | Per unit | Amount |
Sales | $40.00 | $1,380,000.00 |
Variable Cost: | ||
Variable manufacturing cost | $16.50 | $569,250.00 |
Variable Selling and Administrative Expenses | $6.80 | $234,600.00 |
Contribution | $16.70 | $576,150.00 |
Fixed Manufacturing Overhead | $252,000.00 | |
Fixed Selling & Administrative Expenses | $235,950.00 | |
Net Income | $88,200.00 |
Solution 3b:
Tami Creations | ||
Full Absorption income statement For the Quarter ended Jun 30 |
||
Particulars | Details | Amount |
Sales | $1,380,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (31500*$24.50) | $771,750.00 | |
Add: Opening Inventory (3000*24.50) | $73,500.00 | |
Less: Ending Inventory | $0.00 | $845,250.00 |
Gross Profit | $534,750.00 | |
Variable Selling & Administrative Expenses | $234,600.00 | |
Fixed Selling & Administrative Expenses | $235,950.00 | |
Net Operating Income | $64,200.00 |
Solution 3c:
Reconciliation of Net Operating income under absorption costing & Variable Costing - For quarter ended Jun 30 | |
Particulars | |
Net Operating Income - Variable Costing | $88,200.00 |
Add : Fixed manufacturing overhead deferred in ending inventory | $0.00 |
Less: Fixed manufacturing overhead released from beginning inventory (3000*$8) | $24,000.00 |
Net Operating Income - Absorption Costing | $64,200.00 |
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year....
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $ 1,136,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,400 units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University $ 1,120,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,800 units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $1,140,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,500 units) Variable expenses Variable cost of goods...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $1. 132.000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,300 units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $ 1,148,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,700 units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 $ 1,132.00e Sales (28,30e units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,600 units) $1,144,000 Variable expenses: Variable cost of goods...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University $1,138,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,450 units) Variable expenses: Variable cost of goods...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $ 1,148,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,700 units) Variable expenses: Variable cost of...
Check my w Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University $ 1,120,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,000 units) Variable expenses...