Solution 1a:
Computation of Unit Product Cost - Absorption Costing | ||
Particulars | Q1 | Q2 |
Unit Product Cost: | ||
Direct material | $7.30 | $7.30 |
Direct Labor | $6.60 | $6.60 |
Variable manufacturing overhead | $1.60 | $1.60 |
Fixed
manufacturing overhead ($266,400/33300) |
$8.00 | $8.00 |
Unit Product Cost | $23.50 | $23.50 |
Solution 1b:
Tami Creations | ||
Full Absorption income statement For the Quarter ended March 31 |
||
Particulars | Details | Amount |
Sales | $1,132,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (33300*$23.50) | $782,550.00 | |
Add: Opening Inventory | $0.00 | |
Less: Ending Inventory (5000*$23.50) | $117,500.00 | $665,050.00 |
Gross Profit | $466,950.00 | |
Variable Selling & Administrative Expenses | $198,100.00 | |
Fixed Selling & Administrative Expenses | $248,850.00 | |
Net Operating Income | $20,000.00 |
solution 1c:
Reconciliation of Net Operating income under absorption costing & Variable Costing - March 31 | |
Particulars | Amount |
Net Operating Income - Variable Costing | -$20,000.00 |
Add : Fixed manufacturing overhead deferred in inventory ($8*5000) | $40,000.00 |
Less: Fixed manufacturing overhead released in inventory | $0.00 |
Net Operating Income - Absorption Costing | $20,000.00 |
Solution 3a:
Computation of Unit Product Cost - Variable Costing | ||
Particulars | Q1 | Q2 |
Unit Product Cost: | ||
Direct material | $7.30 | $7.30 |
Direct Labor | $6.60 | $6.60 |
Variable manufacturing overhead | $1.60 | $1.60 |
Unit product cost | $15.50 | $15.50 |
Tami Creations | ||
Contribution margin income statement For the Quarter ended June 30 |
||
Particulars | Per unit | Amount |
Sales | $40.00 | $1,532,000.00 |
Variable Cost: | ||
Variable manufacturing cost | $15.50 | $593,650.00 |
Variable Selling and Administrative Expenses | $7.00 | $268,100.00 |
Contribution | $17.50 | $670,250.00 |
Fixed Manufacturing Overhead | $266,400.00 | |
Fixed Selling & Administrative Expenses | $248,850.00 | |
Net Income | $155,000.00 |
Solution 3b:
Tami Creations | ||
Full Absorption income statement For the Quarter ended Jun 30 |
||
Particulars | Details | Amount |
Sales | $1,532,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (33300*$23.50) | $782,550.00 | |
Add: Opening Inventory (5000*23.50) | $117,500.00 | |
Less: Ending Inventory | $0.00 | $900,050.00 |
Gross Profit | $631,950.00 | |
Variable Selling & Administrative Expenses | $268,100.00 | |
Fixed Selling & Administrative Expenses | $248,850.00 | |
Net Operating Income | $115,000.00 |
Solution 3c:
Reconciliation of Net Operating income under absorption costing & Variable Costing - For quarter ended Jun 30 | |
Particulars | Amount |
Net Operating Income - Variable Costing | $155,000.00 |
Add : Fixed manufacturing overhead deferred in inventory | $0.00 |
Less: Fixed manufacturing overhead released in inventory (5000*$8) | $40,000.00 |
Net Operating Income - Absorption Costing | $115,000.00 |
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 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. $ 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. $ 1,148,000 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 $1,132,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,300 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. 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...
Just 3a 3b & 3c 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...
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 $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...