Question:QUESTION THREE Medina Corp produces bicycle helmets. Each helmet is sold for $100. Planned and actual...
Question
QUESTION THREE Medina Corp produces bicycle helmets. Each helmet is sold for $100. Planned and actual...
QUESTION THREE Medina Corp produces bicycle helmets. Each helmet is sold for $100. Planned and actual production was the same for May and June. The cost of the beginning inventory in May is the same as the cost of helmets in May. Data for the helmets for May and June follows: May 500 units 700 units 60 units June 700 units 560 units Sales Production Beginning inventory Costs: Variable Manufacturing Fixed Manufacturing Variable Operating Fixed Operating $ 17,500 $ 14,000 $ 10,000 $ 7,000 $ 14,000 $ 14,000 $ 12,000 $ 7,000 REQUIRED: A. Prepare income statements for May and June under (i) variable costing; and, (ii) absorption costing. B. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under absorption costing and variable costing.
Budgeted Income Statement and Supporting Budgets The budget director of Jupiter Helmets Inc., with the assistance of the controller, treasurer, production manager and sales manager, has gathered the following data for use in developing the budgeted income statement for May a. Estimated sales for May: Bicycle helmet 7,500 units at $24 per unit Motorcycle helmet 7,000 units at $185 per unit b. Estimated Inventories at May 1: Direct materials: Plastic Foam lining 1,480 lbs. 520 lbs. Finished products: Bicycle helmet...
Ned's Entrees produces frozen meals, which it sells for $ 10
each. The company uses the FIFO inventory costing method, and it
computes a new monthly fixed manufacturing overhead rate based on
the actual number of meals produced that month. All costs and
production levels are exactly as planned. The following data are
from the company's first two months in business:
LOADING...(Click the icon to view the data.) Requirements 1.
Compute the product cost per meal produced under absorption costing...
Louie's Meals produces frozen meals, which it sells for $8
each. The company uses the FIFO inventory costing method, and it
computes a new monthly fixed manufacturing overhead rate based on
the actual number of meals produced that month. All costs and
production levels are exactly as planned. The following data are
from the company's first two months in business:
(Click the icon to view the data.)
Data Table
January
February
Sales. . . . . . . . ....
Budgeted Income Statement and Supporting Budgets
The budget director of Jupiter Helmets Inc., with the assistance
of the controller, treasurer, production manager, and sales
manager, has gathered the following data for use in developing the
budgeted income statement for May:
a. Estimated sales for May:
Bicycle helmet
9,250 units at $24 per unit
Motorcycle helmet
6,250 units at $180 per unit
b. Estimated inventories at May 1:
Direct materials:
Finished products:
Plastic
1,480
lbs.
Bicycle helmet
200 units at $15...
Bharat Bicycle, located in India, produces an inexpensive yet rugged bicycle for use on crowded city streets. The company sells the bicycle for 695 rupees. (Indian currency is denominated in rupees, denoted by R.) Selected data for the company's operations last year follow: 11,200 9,100 2,100 172 194 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead...
Bharat Bicycle, located in India, produces an inexpensive yet
rugged bicycle for use on crowded city streets. The company sells
the bicycle for 695 rupees. (Indian currency is denominated in
rupees, denoted by R.) Selected data for the company’s operations
last year follow:
Units in beginning inventory
0
Units produced
11,200
Units sold
9,100
Units in ending inventory
2,100
Variable costs per unit:
Direct materials
R
172
Direct labour
R
194
Variable manufacturing
overhead
R
54
Variable selling and...
Budgeted Income Statement and Supporting Budgets
The budget director of Jupiter Helmets Inc., with the assistance
of the controller, treasurer, production manager, and sales
manager, has gathered the following data for use in developing the
budgeted income statement for May:
a. Estimated sales for May:
Bicycle helmet
8,500 units at $24 per unit
Motorcycle helmet
5,500 units at $180 per unit
b. Estimated inventories at May 1:
Direct materials:
Finished products:
Plastic
1,480
lbs.
Bicycle helmet
200 units at $15...
Variable and absorptioncosting;explaining
operating-incomedifferences.TCMotorsassembles and sells motor
vehicles, and uses standard costing. Actual data relating to April
and May 2015 are
The selling price per vehicle is $24,000. The budgeted level of
production used to calculate the budgeted fixed manufacturing cost
per unit is 500 units. There are no price, efficiency, or rate
variances. Any produc- tion-volume variance is written off to cost
of goods sold in the month in which it occurs.
Required
1. Prepare April and May 2015...
Accelerate Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: E: (Click the icon to view the data.) The selling price per vehicle is $28,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it...
Krepps Corporation produces a single product. Last year, Krepps
manufactured 35,040 units and sold 29,600 units. Production costs
for the year were as follows:
Direct materials
$
266,304
Direct labor
$
157,680
Variable manufacturing overhead
$
297,840
Fixed manufacturing overhead
$
385,440
Sales totaled $1,450,400 for the year, variable selling and
administrative expenses totaled $156,880, and fixed selling and
administrative expenses totaled $255,792. There was no beginning
inventory. Assume that direct labor is a variable cost.
Under variable costing, the...