Homework Answers
As closing inventory quantity are same under both methods, the variable costing inventory can be assumed to be accounted at its variable cost, which is 53% of sales value. Absorption costing inventory is accounted at absorption costs of 75%
| Absorption | Variable | |
| Closing inventory | 210000 | 150000 |
| Cost ratio (Cost/Sales) | 0.75 | 0.53 |
| Sales value will be same in both cases. | 2,81,250.00 | 2,81,250.00 |
| GP Ratio | 0.25 | 0.47 |
| If the per unit selling price is assumed to be $10 ( as it is not given), additional income on sale of additional 10000 units will be | 25,000 | 47000 |
| Current Operating income | 220000 | 160000 |
| Total Income from operations | 2,45,000 | 2,07000 |
Add Answer to:
absorption Statement Saxon, Inc. Absorption Costing Income Statement For the Year Ended December 31 $1,125,000.00 1...
1. Use the income statements on the Absorption Statement and Variable Statement to complete the following...
1. Use the income statements on the Absorption Statement and Variable Statement to complete the following table for the original production level. Then prepare similar income statements at a production level 10,000 units higher and add that information to the table. Assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same at both production levels. Operating Income Original Production Level-Absorption Original Production Level-Variable Additional 10,000 Units-Absorption Additional 10,000 Units-Variable $310,000 $250,000 $...
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs...
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc. Absorption Costing Income Statement For the Year Ended December 31 Sales $1,280,000 $840,000 (168,000) Cost of goods sold: Cost of goods manufactured Ending inventory Total cost of goods sold Gross profit Selling and administrative expenses Operating income (672,000) $608,000 (305,000) $303,000 Variable Statement Under variable costing, the cost of goods manufactured includes only variable...
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan...
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 11,900 flat panel televisions, of which 10,900 were sold. Operating data for the month are summarized as follows: Sales $1,798,500 Manufacturing costs: Direct materials $928,200 Direct labor 273,700 Variable manufacturing cost 238,000 Fixed manufacturing cost 119,000 1,558,900 Selling and administrative expenses: Variable $141,700 Fixed 65,200 206,900 Required: 1. Prepare an income statement based on the absorption...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 6,300 units and sold 5,400 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $1,620,000 Variable cost of goods sold: Variable cost of goods manufactured $907,200 Inventory, December 31 (129,600) Total variable cost of goods sold 777,600 Manufacturing...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 4,000 units and sold 3,400 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $986,000 Variable cost of goods sold: Variable cost of goods manufactured $556,000 Inventory, December 31 (83,400) Total variable cost of goods sold 472,600 Manufacturing...
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yosan...
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yosan Inc, manufactured 11,700 flat panel televisions, of which 10,800 were sold. Operating data for the month are summarired as follows: Sales $1,890,000 Manufacturing costs: Direct materials $959.400 Direct labor 292.500 Variable manufacturing cost 245,700 Faced manufacturing cost 128.700 1,626,300 Selling and administrative expenses Variable $151,200 Fixed 69,600 220,800 Required: 1. Prepare an income statement based on the absorption costing concept. Yosan Inc. Absorption Costing...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 5,300 units and sold 4,600 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 2011 Sales $2,300,000 Variable cost of goods sold: Variable cost of goods mantectured $1,272,000 Inventory, December 31 (168,000) Total variable cost of goods sold 1,104,000 Manufacturing...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 5,500 units and sold 4,700 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $1,034,000 Variable cost of goods sold: Variable cost of goods manufactured $583,000 EInventory, December 31 (84,800) Total variable cost of goods sold 498,200 Manufacturing...
On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 6,000 units...
On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 6,000 units and sold 5,200 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $2,028,000 Variable cost of goods sold: Variable cost of goods manufactured $1,122,000 EInventory, December 31 (149,600) Total variable cost of goods sold 972,400 Manufacturing margin $1,055,600 Total variable selling and administrative expenses 244,400 Contribution...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing þn March 31, the end of...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing þn March 31, the end of the first year of operations, Barnard Inc., manufactured 4,100 units and sold 3,500 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 2041 Sales $1,365,000 variable cost of goods sold: Variable cost of goods manufactured 5766,700 Inventory, March 31 (112,200) Total variable cost of goods sold (654,500) Manufacturing...
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc. Absorption Costing Income Statement For the Year Ended December 31 Sales $1,280,000 $840,000 (168,000) Cost of goods sold: Cost of goods manufactured Ending inventory Total cost of goods sold Gross profit Selling and administrative expenses Operating income (672,000) $608,000 (305,000) $303,000 Variable Statement Under variable costing, the cost of goods manufactured includes only variable...
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yosan Inc, manufactured 11,700 flat panel televisions, of which 10,800 were sold. Operating data for the month are summarired as follows: Sales $1,890,000 Manufacturing costs: Direct materials $959.400 Direct labor 292.500 Variable manufacturing cost 245,700 Faced manufacturing cost 128.700 1,626,300 Selling and administrative expenses Variable $151,200 Fixed 69,600 220,800 Required: 1. Prepare an income statement based on the absorption costing concept. Yosan Inc. Absorption Costing...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 5,300 units and sold 4,600 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 2011 Sales $2,300,000 Variable cost of goods sold: Variable cost of goods mantectured $1,272,000 Inventory, December 31 (168,000) Total variable cost of goods sold 1,104,000 Manufacturing...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing þn March 31, the end of the first year of operations, Barnard Inc., manufactured 4,100 units and sold 3,500 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 2041 Sales $1,365,000 variable cost of goods sold: Variable cost of goods manufactured 5766,700 Inventory, March 31 (112,200) Total variable cost of goods sold (654,500) Manufacturing...
Most questions answered within 3 hours.
-
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 27 minutes ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 1 hour ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 1 hour ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 1 hour ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 1 hour ago -
2. An AC generator has 80 rectangular loops on
its armature. Each loop is 11 cm...
asked 1 hour ago -
Please help me with this question. Consider Aldi’s current and
potential geographic markets (see Exhibit 4...
asked 1 hour ago -
What are the main components of the fermentation process and
give an explanation of each? Include...
asked 1 hour ago -
Explain which types of cells in the body (belonging to which
organs, etc.) are sensitive to...
asked 1 hour ago -
A single cable supports an 703-kg elevator car. What is the
tension in the cable when...
asked 1 hour ago -
among the three different ways to link CSS specifications to an
HTML document (inline CSS, document...
asked 2 hours ago -
(1) Write the net ionic equation for the reaction that occurs
when equal volumes of 0.191...
asked 2 hours ago