Solution 1a:
Computation of Unit Product Cost - Absorption Costing | ||
Particulars | Q1 | Q2 |
Unit Product Cost: | ||
Direct material | $7.50 | $7.50 |
Direct Labor | $5.70 | $5.70 |
Variable manufacturing overhead | $1.80 | $1.80 |
Fixed
manufacturing overhead ($267,600/33450) |
$8.00 | $8.00 |
Unit Product Cost | $23.00 | $23.00 |
Solution 1b:
Tami Creations | ||
Full Absorption income statement For the Quarter ended March 31 |
||
Particulars | Details | Amount |
Sales | $1,138,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (33450*$23) | $769,350.00 | |
Add: Opening Inventory | $0.00 | |
Less: Ending Inventory (5000*$23) | $115,000.00 | $654,350.00 |
Gross Profit | $483,650.00 | |
Variable Selling & Administrative Expenses | $194,882.00 | |
Fixed Selling & Administrative Expenses | $268,768.00 | |
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 | $7.50 | $7.50 |
Direct Labor | $5.70 | $5.70 |
Variable manufacturing overhead | $1.80 | $1.80 |
Unit product cost | $15.00 | $15.00 |
Tami Creations | ||
Contribution margin income statement For the Quarter ended June 30 |
||
Particulars | Per unit | Amount |
Sales | $40.00 | $1,538,000.00 |
Variable Cost: | ||
Variable manufacturing cost | $15.00 | $576,750.00 |
Variable Selling and Administrative Expenses | $6.85 | $263,382.00 |
Contribution | $18.15 | $697,868.00 |
Fixed Manufacturing Overhead | $267,600.00 | |
Fixed Selling & Administrative Expenses | $268,768.00 | |
Net Income | $161,500.00 |
Solution 3b:
Tami Creations | ||
Full Absorption income statement For the Quarter ended Jun 30 |
||
Particulars | Details | Amount |
Sales | $1,538,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (33450*$23) | $769,350.00 | |
Add: Opening Inventory (5000*23) | $115,000.00 | |
Less: Ending Inventory | $0.00 | $884,350.00 |
Gross Profit | $653,650.00 | |
Variable Selling & Administrative Expenses | $263,382.00 | |
Fixed Selling & Administrative Expenses | $268,768.00 | |
Net Operating Income | $121,500.00 |
Solution 3c:
Reconciliation of Net Operating income under absorption costing & Variable Costing - For quarter ended Jun 30 | |
Particulars | Amount |
Net Operating Income - Variable Costing | $161,500.00 |
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 |
$121,500.00 |
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. $1,140,000 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 Tani's Creations. Inc. Income Statement For the Quarter Ended Warch 31 Sales (28.300 wita) $ 1.132.000 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. $ 1,124,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,100 units) Variable expenses: Variable cost of...
Chapter 6 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. $ 1,144,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,600 units) Variable expenses: 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. 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...
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, 138, eee Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,458 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. Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its...
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...