Solution 1a: | ||
Computation of Unit Product Cost - Absorption Costing | ||
Particulars | Q1 | Q2 |
Unit Product Cost: | ||
Direct material | $7.10 | $7.10 |
Direct Labor | $7.80 | $7.80 |
Variable manufacturing overhead | $1.90 | $1.90 |
Fixed manufacturing overhead ($284,400/31600) |
$9.00 | $9.00 |
Unit Product Cost | $25.80 | $25.80 |
Solution 1b: | ||
Tami Creations | ||
Full Absorption income statement For the Quarter ended March 31 |
||
Particulars | Details | Amount |
Sales | $1,144,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (31600*$25.80) | $815,280.00 | |
Add: Opening Inventory | $0.00 | |
Less: Ending Inventory (3000*$25.80) | $77,400.00 | $737,880.00 |
Gross Profit | $406,120.00 | |
Variable Selling & Administrative Expenses | $194,480.00 | |
Fixed Selling & Administrative Expenses | $198,140.00 | |
Net Operating Income | $13,500.00 |
Solution 1c: | |
Reconciliation of Net Operating income under absorption costing & Variable Costing - March 31 | |
Particulars | Amount |
Net Operating Income - Variable Costing | -$13,500.00 |
Add : Fixed manufacturing overhead deferred in inventory ($9*3000) | $27,000.00 |
Less: Fixed manufacturing overhead released in inventory | $0.00 |
Net Operating Income - Absorption Costing | $13,500.00 |
Solution 3a: | ||
Computation of Unit Product Cost - Variable Costing | ||
Particulars | Q1 | Q2 |
Unit Product Cost: | ||
Direct material | $7.10 | $7.10 |
Direct Labor | $7.80 | $7.80 |
Variable manufacturing overhead | $1.90 | $1.90 |
Unit product cost | $16.80 | $16.80 |
Tami Creations | ||
Contribution margin income statement For the Quarter ended June 30 |
||
Particulars | Per unit | Amount |
Sales | $40.00 | $1,384,000.00 |
Variable Cost: | ||
Variable manufacturing cost | $16.80 | $581,280.00 |
Variable Selling and Administrative Expenses | $6.80 | $235,280.00 |
Contribution | $16.40 | $567,440.00 |
Fixed Manufacturing Overhead | $284,400.00 | |
Fixed Selling & Administrative Expenses | $198,140.00 | |
Net Income | $84,900.00 |
Solution 3b: | ||
Tami Creations | ||
Full Absorption income statement For the Quarter ended Jun 30 |
||
Particulars | Details | Amount |
Sales | $1,384,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (31600*$25.80) | $815,280.00 | |
Add: Opening Inventory (3000*25.80) | $77,400.00 | |
Less: Ending Inventory | $0.00 | $892,680.00 |
Gross Profit | $491,320.00 | |
Variable Selling & Administrative Expenses | $235,280.00 | |
Fixed Selling & Administrative Expenses | $198,140.00 | |
Net Operating Income | $57,900.00 |
Solution 3c: | |
Reconciliation of Net Operating income under absorption costing & Variable Costing - For quarter ended Jun 30 | |
Particulars | Amount |
Net Operating Income - Variable Costing | $84,900.00 |
Add : Fixed manufacturing overhead deferred in inventory | $0.00 |
Less: Fixed manufacturing overhead released in inventory (3000*$9) | $27,000.00 |
Net Operating Income - Absorption Costing | $57,900.00 |
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year....
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. $ 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 $1,138,000 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. $1,140,000 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. $ 1,124,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,100 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...
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...