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Homework Answers
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Profitability under Activity Based Costing |
| Qty in Nos. | 70,000 | 17,500 | ||||
| Rate in $ / Unit | 20 | 40 | ||||
| Total | B300 | T500 | ||||
| Sales | 21,00,000 | 14,00,000 | 7,00,000 | |||
| Direct Material | 6,88,000 | 4,36,300 | 2,51,700 | |||
| Direct Labor | 3,04,000 | 2,00,000 | 1,04,000 | |||
| Manufacturing Overhead | 6,08,000 | 3,11,100 | 2,96,900 | |||
| Machining | 2,13,500 | 1,26,000 | 87,500 | 90,000 | 62,500 | 1,52,500 |
| Setups | 1,57,500 | 31,500 | 1,26,000 | 75 | 300 | 375 |
| Product Sustaining | 1,20,000 | 60,000 | 60,000 | 1 | 1 | 2 |
| Other Sustaining Cost | 1,17,000 | 93,600 | 23,400 | based on umber of units produced | NA | |
| Cost of Goods Sold | 16,00,000 | 9,47,400 | 6,52,600 | |||
| Gross Margin | 5,00,000 | 4,52,600 | 47,400 | |||
| Selling & Administrative Expenses | 5,50,000 | 3,16,667 | 2,33,333 | |||
| Advertising Expenses | 1,50,000 | 50,000 | 1,00,000 | |||
| Other Selling & Administrative Expenses | 4,00,000 | 2,66,667 | 1,33,333 | based on Sales Revenue | ||
| Net Operating loss | -50,000 | 1,35,933 | -1,85,933 | |||
Profitability under Traditional based Costing
| Qty in Nos. | 70,000 | 17,500 | |||
| Rate in $ / Unit | 20 | 40 | |||
| Total | B300 | T500 | |||
| Sales | 21,00,000 | 14,00,000 | 7,00,000 | ||
| Direct Material | 6,88,000 | 4,36,300 | 2,51,700 | ||
| Direct Labor | 3,04,000 | 2,00,000 | 1,04,000 | ||
| Manufacturing Overhead | 6,08,000 | 1,21,600 | 4,86,400 | based on Setup hours | |
| Cost of Goods Sold | 16,00,000 | 7,57,900 | 8,42,100 | ||
| Gross Margin | 5,00,000 | 6,42,100 | -1,42,100 | ||
| Selling & Administrative Expenses | 5,50,000 | 3,66,667 | 1,83,333 | based on Sales Revenue | |
| Net Operating loss | -50,000 | 2,75,433 | -3,25,433 | ||
The ABC method & Traditional Method differ because the ABC Method allocated the various costs based on Activity and Traditional based on number of Units produced
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E connect ACCOUNTING et Margins [L01, LO3, L04, L05] PROBLEM 7-17 Comparing Traditional and Activity-Based Product...
PROBLEM 7-17 Comparing Traditional and Activity-Based PRODUCE MOTS VALVULNU Hi-Tek Manufacturing Inc, makes two types of...
PROBLEM 7-17 Comparing Traditional and Activity-Based PRODUCE MOTS VALVULNU Hi-Tek Manufacturing Inc, makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing Inc. Income Statement Sales ....... Cost of goods sold ......... Gross margin .. Selling and administrative expenses Net operating loss... $2,100,000 1,600,000 500,000 550,000 $ (50,000) Hi-Tek produced and sold 70.00 af a price of $40 per unit. oduced and sold 70,000...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, L07-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, L07-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown boints $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,716.00 1,212,566 503.434 560.000 (56,566) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Inc., makes...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales 1,749,600 1,233,208 516,392 590,000 (73,608) Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,500 units...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of Industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,697,400 Cost of goods sold 1,230,193 Gross margin 467,207 Selling and administrative expenses 640,000 net operating loss $ (172,793) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $1,709, 200 Cost of goods sold 1,233,722 Gross margin 475,478 Selling and administrative expenses 650,000 Net operating loss $ (174,522) Hi-Tek produced and sold 60.500 units of B300 at a price of $20 per unit and...
Thanks for your help and time!!! Problem 7-16 Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3,...
Thanks for your help and time!!!
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, L07-5) Hi-Tek Manufacturing, Inc, makes two types of industrial component parts-the B300 and the T500 An absorption costing income statement for the most recent period is shown: Hi-Tel Manufacturint Inc. Income Statement Cost of goods sold GIOS margin Selling and administrative expenses Net operating loss $ 1,695,500 1,214,024 181,476 580,000 Hi-Tek produced and sold 60,400 units of B300 at a price of $20...
1 Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 5 points Hi-Tek...
1 Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 5 points Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: eBook Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,714,000 1,244,230 469, 770 550,000 $ (80,230) Print References Hi-Tek produced and sold 60,300 units of B300 at a...
1 Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 5 points Hi-Tek...
1 Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 5 points Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: eBook Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,714,000 1,244,230 469, 770 550,000 $ (80,230) Print References Hi-Tek produced and sold 60,300 units of B300 at a...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, LO7-5) Hi-Tek Manufacturing, Inc., makes...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,697,300 1,247,560 449,740 590,000 (140.260) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,700...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Inc., makes...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,708,000 Cost of goods sold 1,228,693 Gross margin 479,307 Selling and administrative expenses 550,000 Net operating loss $ (70,693 ) Hi-Tek produced and sold 60,000 units of B300 at a price of $20 per unit...
PROBLEM 7-17 Comparing Traditional and Activity-Based PRODUCE MOTS VALVULNU Hi-Tek Manufacturing Inc, makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing Inc. Income Statement Sales ....... Cost of goods sold ......... Gross margin .. Selling and administrative expenses Net operating loss... $2,100,000 1,600,000 500,000 550,000 $ (50,000) Hi-Tek produced and sold 70.00 af a price of $40 per unit. oduced and sold 70,000...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, L07-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown boints $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,716.00 1,212,566 503.434 560.000 (56,566) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales 1,749,600 1,233,208 516,392 590,000 (73,608) Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,500 units...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of Industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,697,400 Cost of goods sold 1,230,193 Gross margin 467,207 Selling and administrative expenses 640,000 net operating loss $ (172,793) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $1,709, 200 Cost of goods sold 1,233,722 Gross margin 475,478 Selling and administrative expenses 650,000 Net operating loss $ (174,522) Hi-Tek produced and sold 60.500 units of B300 at a price of $20 per unit and...
Thanks for your help and time!!!
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, L07-5) Hi-Tek Manufacturing, Inc, makes two types of industrial component parts-the B300 and the T500 An absorption costing income statement for the most recent period is shown: Hi-Tel Manufacturint Inc. Income Statement Cost of goods sold GIOS margin Selling and administrative expenses Net operating loss $ 1,695,500 1,214,024 181,476 580,000 Hi-Tek produced and sold 60,400 units of B300 at a price of $20...
1 Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 5 points Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: eBook Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,714,000 1,244,230 469, 770 550,000 $ (80,230) Print References Hi-Tek produced and sold 60,300 units of B300 at a...
1 Problem 7-16 Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) 5 points Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown: eBook Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,714,000 1,244,230 469, 770 550,000 $ (80,230) Print References Hi-Tek produced and sold 60,300 units of B300 at a...
Problem 7-16 Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,697,300 1,247,560 449,740 590,000 (140.260) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,700...
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