Solution 1a:
Computation of Unit Product Cost - Absorption Costing | ||
Particulars | Q1 | Q2 |
Unit Product Cost: | ||
Direct material | $7.30 | $7.30 |
Direct Labor | $7.20 | $7.20 |
Variable manufacturing overhead | $1.60 | $1.60 |
Fixed
manufacturing overhead ($299,700/33300) |
$9.00 | $9.00 |
Unit Product Cost | $25.10 | $25.10 |
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*$25.10) | $835,830.00 | |
Add: Opening Inventory | $0.00 | |
Less: Ending Inventory (5000*$25.10) | $125,500.00 | $710,330.00 |
Gross Profit | $421,670.00 | |
Variable Selling & Administrative Expenses | $195,270.00 | |
Fixed Selling & Administrative Expenses | $203,900.00 | |
Net Operating Income | $22,500.00 |
Solution 1c:
Reconciliation of Net Operating income under absorption costing & Variable Costing - March 31 | |
Particulars | Amount |
Net Operating Income - Variable Costing | -$22,500.00 |
Add : Fixed manufacturing overhead deferred in inventory ($9*5000) | $45,000.00 |
Less: Fixed manufacturing overhead released in inventory | $0.00 |
Net Operating Income - Absorption Costing | $22,500.00 |
Solution 3a:
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 | $16.10 | $616,630.00 |
Variable Selling and Administrative Expenses | $6.90 | $264,270.00 |
Contribution | $17.00 | $651,100.00 |
Fixed Manufacturing Overhead | $299,700.00 | |
Fixed Selling & Administrative Expenses | $203,900.00 | |
Net Income | $147,500.00 |
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*$25.10) | $835,830.00 | |
Add: Opening Inventory (5000*25.10) | $125,500.00 | |
Less: Ending Inventory | $0.00 | $961,330.00 |
Gross Profit | $570,670.00 | |
Variable Selling & Administrative Expenses | $264,270.00 | |
Fixed Selling & Administrative Expenses | $203,900.00 | |
Net Operating Income | $102,500.00 |
Solution 3c:
Reconciliation of Net Operating income under absorption costing & Variable Costing - For quarter ended Jun 30 | |
Particulars | Amount |
Net Operating Income - Variable Costing | $147,500.00 |
Add : Fixed manufacturing overhead deferred in inventory | $0.00 |
Less: Fixed manufacturing overhead released in inventory (5000*$9) | $45,000.00 |
Net Operating Income - Absorption Costing | $102,500.00 |
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. 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. $1,140,000 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. $ 1,136,000 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. 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. $ 1,148,000 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...
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...
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...