Homework Answers
Answer : D) Its operating income for the Period will be Higher than under absorption Costing
Major Difference between Absorption costing and Variable costing is the Fixed Manufacturing Expenses. Absorption Costing Consider Fixed Manufacturing Expenses As a Product cost Whereas Variable Costing takes it as a Period Cost. For the Above Problem Variable Costing, Operating income is more than Absorption since It has the Finished Goods in the Beginning.
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Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced...
2. Haigwood Company has 120 units in Finished Goods Inventory at the beginning of the accounting...
2. Haigwood Company has 120 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haigwood produced 190 units and sold 310 units for $180 each. All units incurred $90 in variable manufacturing costs and $16 in fixed manufacturing costs. Haigwood also incurred $7,400 in Selling and Administrative Costs, all fixed. Calculate the operating income for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption...
1. Compute the value of Outback Corporation’s 20x1 ending finished-goods inventory under absorption costing. (Do not...
1. Compute the value of Outback Corporation’s 20x1 ending
finished-goods inventory under absorption costing. (Do not round
intermediate calculations.)
2. Compute the value of Outback Corporation’s 20x1 ending
finished-goods inventory under variable costing. (Do not round
intermediate calculations.)
3. Compute the difference between Outback Corporation’s 20x1
reported operating income calculated under absorption costing and
calculated under variable costing. (Do not round intermediate
calculations.)
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Q4. (25 marks) Yamaha Company reported operating income for Year 2 of $1,600,000 under variable costing...
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Q4. (25 marks) Yamaha Company reported operating income for Year 2 of $1,600,000 under variable costing...
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Q4. (25 marks) Yamaha Company reported operating income for Year 2 of $1,600,000 under variable costing...
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During the last year, Moore Company's total variable production costs were $10,000, and its total fixed...
During the last year, Moore Company's total variable production costs were $10,000, and its total fixed manufacturing overhead costs were $6,800. The company produced 5,000 units during the year and sold 4,600 units. There were no units in the beginning inventory. Which of the following statements is true? A) The operating income under absorption costing for the year will be $800 higher than operating income under variable costing. B) The operating income under absorption costing for the year will be...
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2. Haigwood Company has 120 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haigwood produced 190 units and sold 310 units for $180 each. All units incurred $90 in variable manufacturing costs and $16 in fixed manufacturing costs. Haigwood also incurred $7,400 in Selling and Administrative Costs, all fixed. Calculate the operating income for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption...
1. Compute the value of Outback Corporation’s 20x1 ending
finished-goods inventory under absorption costing. (Do not round
intermediate calculations.)
2. Compute the value of Outback Corporation’s 20x1 ending
finished-goods inventory under variable costing. (Do not round
intermediate calculations.)
3. Compute the difference between Outback Corporation’s 20x1
reported operating income calculated under absorption costing and
calculated under variable costing. (Do not round intermediate
calculations.)
Outback Corporation manufactures tactical LED flashlights in Brisbane, Australia. The firm uses an absorption costing system for...
Q4. (25 marks) Yamaha Company reported operating income for Year 2 of $1,600,000 under variable costing and $1,200,000 under absorption costing. The total variable manufacturing cost of the company's beginning finished goods inventory was $120,000. The cost of the company's end-of-year finished goods inventory under standard absorption costing was $50,000 higher than the cost of the beginning-of-year finished goods inventory under variable costing. Required: a) Calculate the cost of ending finished goods inventory under absorption costing b) Compare the operating...
Q4. (25 marks) Yamaha Company reported operating income for Year 2 of $1,600,000 under variable costing and $1,200,000 under absorption costing. The total variable manufacturing cost of the company's beginning finished goods inventory was $120,000. The cost of the company's end-of-year finished goods inventory under standard absorption costing was $50,000 higher than the cost of the beginning-of-year finished goods inventory under variable costing. Required: a) Calculate the cost of ending finished goods inventory under absorption costing. b) Compare the operating...
Q4. (25 marks) Yamaha Company reported operating income for Year 2 of $1,600,000 under variable costing and $1,200,000 under absorption costing. The total variable manufacturing cost of the company's beginning finished goods inventory was $120,000. The cost of the company's end-of-year finished goods inventory under standard absorption costing was $50,000 higher than the cost of the beginning-of-year finished goods inventory under variable costing. Required: a) Calculate the cost of ending finished goods inventory under absorption costing. b) Compare the operating...
During the last year, Moore Company's total variable production costs were $10,000, and its total fixed manufacturing overhead costs were $6,800. The company produced 5,000 units during the year and sold 4,600 units. There were no units in the beginning inventory. Which of the following statements is true? A) The operating income under absorption costing for the year will be $800 higher than operating income under variable costing. B) The operating income under absorption costing for the year will be...
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