Homework Answers
| WORKING NOTES: | ||||
| Caclulation of Unit Cost of Production by using Variable Costing | ||||
| Particulars | Amount | |||
| Cost per Unit | ||||
| Driect Material | $ 4.00 | |||
| Direct Labour | $ 9.00 | |||
| Variable overhead | $ 8.00 | |||
| Total Manufacturing Cost as per variable Costing | $ 21.00 | |||
| SOLUTION: | ||||
| VARIABLE COSTING INCOME STATEMENT FOR THE YEAR 2016 & 2017 | ||||
| 2016 | 2017 | |||
| Sales Revenue | $ 9,66,000 | 1886000 | ||
| Cost of Goods Sold(21,000 Units X $ 21) (41,000 units X $21) | $ 4,41,000 | $ 8,61,000 | ||
| Manufacturing Margin | $ 5,25,000 | $ 10,25,000 | ||
| Less: Variable Sellign and administration expenses | $ 47,250 | $ 92,250 | ||
| Contribution margin | $ 4,77,750 | $ 9,32,750 | ||
| Fixed Cost | ||||
| Fixed Manufacturing Cost | $ 3,10,000 | $ 3,10,000 | ||
| Fixed Selling and adminsitration expenses | $ 2,45,000 | $ 2,45,000 | ||
| Total Fixed Cost | $ 5,55,000 | $ 5,55,000 | ||
| Net Income | $ -77,250 | $ 3,77,750 | ||
| Note : As per variable costing we are not taking Fixed overhead as production cost. In variable | ||||
| costing Fixed overhead is also taken as period cost and charged full in the same year | ||||
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The following information applies to the questions displayed below Dowell Company produces a single product. Its...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $966,000 $1,886,000 651,000 1,271,000 315,000 615,000 292,250 337,250 $ 22,759 $ 277,750 Additional Information a. Sales and production data for these first two years follow. Units produced Units...
[The following information applies to the questions displayed below.] Dowell Company produces a single product. Its...
[The following information applies to the questions
displayed below.]
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($48 per unit)
$
1,056,000
$
2,016,000
Cost of goods sold ($33 per unit)
726,000
1,386,000
Gross margin
330,000
630,000
Selling and administrative expenses
300,000
350,000
Net income
$
30,000
$
280,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017
Units produced...
[The following information applies to the questions displayed below.] Dowell Company produces a single product. Its...
[The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2016 2017 Sales ($48 per unit) $ 1,056,000 $ 2,016,000 Cost of goods sold ($33 per unit) 726,000 1,386,000 Gross margin 330,000 630,000 Selling and administrative expenses 300,000 350,000 Net income $ 30,000 $ 280,000 Additional Information Sales and production data for these first two years follow. 2016 2017 Units produced...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
Required information
[The following information applies to the questions
displayed below.]
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($48 per unit)
$
1,056,000
$
2,016,000
Cost of goods sold ($33 per unit)
726,000
1,386,000
Gross margin
330,000
630,000
Selling and administrative expenses
300,000
350,000
Net income
$
30,000
$
280,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($44 per unit) cout of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $880,000 $1,760,000 580,000 1,160,000 300,000 600,000 285,000 325,000 $ 15,000 $275,000 Additional Information a. Sales and production data for these first two years follow. Units produced 2018 30,000...
Required information The following information applies to the questions displayed below) Dowell Company produces a single...
Required information The following information applies to the questions displayed below) Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936.000 Cost of goods sold ($29 per unit 696,000 1,275,000 Gross margin 360,000 660,000 Selling and administrative expenses 299,000 344.000 Net income $ 61,000 $316,000 Additional information a. Sales and production data for these first two years follow Units produced Units sold...
Required information (The following information applies to the questions displayed below) Dowell Company produces a single...
Required information (The following information applies to the questions displayed below) Dowell Company produces a single product. It income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936,000 Cost of goods sold ($29 per unit) 696,000 1,276,000 Gross margin 360,000 660,000 Selling and administrative expenses 299.000 344,000 Net Income 61,000 $ 316,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold...
Help Save & Exit Required information [The following information applies to the questions displayed below.] Dowell...
Help Save & Exit Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $1,688,000 $1,968,000 693,000 1,353,000 315,000 615,000 281,750 316,750 $ 33,250 $ 298,250 Additional Information o. Sales and production data for these first two years...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of oper...
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($46 per unit)
$
1,104,000
$
2,024,000
Cost of goods sold ($31 per unit)
744,000
1,364,000
Gross margin
360,000
660,000
Selling and administrative expenses
287,000
322,000
Net income
$
73,000
$
338,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017
Units produced
34,000
34,000
Units sold
24,000
44,000
Variable cost per...
Required information (The following information applies to the questions displayed below. Dowell Company produces a single...
Required information (The following information applies to the questions displayed below. Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $1,164,000 $2,064,000 759,000 1,419,000 345,000 645,000 297,500 347,500 $ 47,500 $ 297,500 Additional Information a. Sales and production data for these first two years follow. Units produced Units...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $966,000 $1,886,000 651,000 1,271,000 315,000 615,000 292,250 337,250 $ 22,759 $ 277,750 Additional Information a. Sales and production data for these first two years follow. Units produced Units...
[The following information applies to the questions
displayed below.]
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($48 per unit)
$
1,056,000
$
2,016,000
Cost of goods sold ($33 per unit)
726,000
1,386,000
Gross margin
330,000
630,000
Selling and administrative expenses
300,000
350,000
Net income
$
30,000
$
280,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017
Units produced...
Required information
[The following information applies to the questions
displayed below.]
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($48 per unit)
$
1,056,000
$
2,016,000
Cost of goods sold ($33 per unit)
726,000
1,386,000
Gross margin
330,000
630,000
Selling and administrative expenses
300,000
350,000
Net income
$
30,000
$
280,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($44 per unit) cout of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $880,000 $1,760,000 580,000 1,160,000 300,000 600,000 285,000 325,000 $ 15,000 $275,000 Additional Information a. Sales and production data for these first two years follow. Units produced 2018 30,000...
Required information The following information applies to the questions displayed below) Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936.000 Cost of goods sold ($29 per unit 696,000 1,275,000 Gross margin 360,000 660,000 Selling and administrative expenses 299,000 344.000 Net income $ 61,000 $316,000 Additional information a. Sales and production data for these first two years follow Units produced Units sold...
Required information (The following information applies to the questions displayed below) Dowell Company produces a single product. It income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936,000 Cost of goods sold ($29 per unit) 696,000 1,276,000 Gross margin 360,000 660,000 Selling and administrative expenses 299.000 344,000 Net Income 61,000 $ 316,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold...
Help Save & Exit Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $1,688,000 $1,968,000 693,000 1,353,000 315,000 615,000 281,750 316,750 $ 33,250 $ 298,250 Additional Information o. Sales and production data for these first two years...
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($46 per unit)
$
1,104,000
$
2,024,000
Cost of goods sold ($31 per unit)
744,000
1,364,000
Gross margin
360,000
660,000
Selling and administrative expenses
287,000
322,000
Net income
$
73,000
$
338,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017
Units produced
34,000
34,000
Units sold
24,000
44,000
Variable cost per...
Required information (The following information applies to the questions displayed below. Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $1,164,000 $2,064,000 759,000 1,419,000 345,000 645,000 297,500 347,500 $ 47,500 $ 297,500 Additional Information a. Sales and production data for these first two years follow. Units produced Units...
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