Homework Answers
Absorption costing ia a method of management accounting for recording varous categories of costs on manufaturing of products and services.
|
Year 1 |
Year 2 | Year 3 | |
| Variable costing income | $ 115,000.00 | $ 119,400.00 | $ 123,950.00 |
| Fixed overhead in ending inventory | $ 4,350.00 | $ 2,850.00 | $ 3,150.00 |
| Fixed overhead in beginning inventory | $ - | $ 4,350.00 | $ 2,850.00 |
| Absorption Costing income | $ 119,350.00 | $ 117,900.00 | $ 124,250.00 |
This is calculated using the below formulas:
Fixed overhead ending inventory = Ending Finished Goods Inventory in Units * Fixed manufacturing overhead per unit price
Fixed overhead beginning inventory = Beginning Finished Goods Inventory in Units * Fixed manufacturing overhead per unit price
Absorption Costing income = Variable Costing Income +Fixed overhead in ending inventory-Fixed overhead in beginning inventory
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Exercise 18-26B Computing absorption costing income LO P5 A manufacturer reports the information below for three...
Exercise 18-26B Computing absorption costing income LO P5 A manufacturer reports the information below for three...
Exercise 18-26B Computing absorption costing income LO P5 A manufacturer reports the information below for three recent years. Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Fixed manufacturing overhead per unit Year 1 Year 2 Year 3 $115,000 $119,400 $123,950 0 1,450 950 1,450 950 1,050 $ 3.00 $ 3.00 $ 3.00 Compute income for each of the three years using absorption costing. Year 2 Year 3 Year 1 115,000 $ 119,400 $ 123,950 Variable...
Exercise 06-1 Computing unit and inventory costs under absorption costing LO P1 Trio Company reports the...
Exercise 06-1 Computing unit and inventory costs under absorption costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations. 15 per unit 16 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units 4 per unit $ 160,000 per year 20,000 units 14,000 units 6,000 units 1. Compute the product cost...
QS 18-17B Computing unit cost under absorption costing LO P5 Vijay Company reports the following information...
QS 18-17B Computing unit cost under absorption costing LO P5 Vijay Company reports the following information regarding its production costs. Direct materials 9.70 per unit 19.70 per unit Direct labor Overhead costs for the year Variable overhead 9.70 per unit $130,900 17,000 units Fixed overhead Units produced Compute its product cost per unit under absorption costing. Product cost per unit
QS 18-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began...
QS 18-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold 3,900. Each racket was sold at a price of $80. Fixed overhead costs are $60,000, and fixed selling and administrative costs are $64,200. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $24.00 $ 1.00 Required: Prepare an income statement under absorption costing....
Exercise 19-1 Computing unit and inventory costs under absorption costing LO P1 1.25 points Trio Company...
Exercise 19-1 Computing unit and inventory costs under absorption costing LO P1 1.25 points Trio Company reports the following information for the current year, which is its first year of operations. 15 per unit 18 per unit eBook Hint Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units $ 75,000 per year $ 150,000 per year 25,000 units 19,000 units 6,000 units...
PA5-5 (Algo) Comparing Full Absorption and Variable Costing [LO 55-1] Consider the following information for Presidio...
PA5-5 (Algo) Comparing Full Absorption and Variable Costing [LO 55-1] Consider the following information for Presidio Inc.'s most recent year of operations. $ Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($270,940 + 2,300 units) Total variable selling expenses ($13 per unit sold) Total fixed general and administrative expenses 2,300 1,450 620.00 60.00 90.00 40.00 117.80 19,850.00 73,000.00...
! Required information Exercise 19-7 Income reporting under absorption costing and variable costing LO P2 The...
! Required information Exercise 19-7 Income reporting under absorption costing and variable costing LO P2 The following information applies to the questions displayed below.) Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 330 per unit 100,000 units 103,250 units 3,250 units $ 422,500 260,000 $ 682,500 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $130)...
E5-20 Comparing Full Absorption Costing and Variable Costing [LO 5S-1] The following information pertains to the...
E5-20 Comparing Full Absorption Costing and Variable Costing [LO 5S-1] The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: 3,000 2,500 350 80 Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($225,000 - 3,000 units) Total variable selling expenses ($15 per unit sold) Total fixed general and administrative expenses 60 10 75 37,500...
Variable vs. Absorption Costing $ 50.00 No Video for this worksheet Selling price per unit Manufacturing...
Variable vs. Absorption Costing $ 50.00 No Video for this worksheet Selling price per unit Manufacturing costs Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $ 11.00 REQUIRED: Calculate the unit cost and prepare a traditional 6.00 $ 3.00 120,000 Selling and administrative expenses Variable per unit sold Fixed per year $ 4.00 70,000 Year 1 Units in beginning inventory Units produced during the year Units sold during the year Units in...
Exercise 06-2 Computing unit and inventory costs under variable costing LO P1 Trio Company reports the following i...
Exercise 06-2 Computing unit and inventory costs under variable costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations. Assume instead that Trio Company uses variable costing $ 15 per unit 16 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units 4 per unit $ 160,000 per year 20,800 units...
Exercise 18-26B Computing absorption costing income LO P5 A manufacturer reports the information below for three recent years. Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Fixed manufacturing overhead per unit Year 1 Year 2 Year 3 $115,000 $119,400 $123,950 0 1,450 950 1,450 950 1,050 $ 3.00 $ 3.00 $ 3.00 Compute income for each of the three years using absorption costing. Year 2 Year 3 Year 1 115,000 $ 119,400 $ 123,950 Variable...
Exercise 06-1 Computing unit and inventory costs under absorption costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations. 15 per unit 16 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units 4 per unit $ 160,000 per year 20,000 units 14,000 units 6,000 units 1. Compute the product cost...
QS 18-17B Computing unit cost under absorption costing LO P5 Vijay Company reports the following information regarding its production costs. Direct materials 9.70 per unit 19.70 per unit Direct labor Overhead costs for the year Variable overhead 9.70 per unit $130,900 17,000 units Fixed overhead Units produced Compute its product cost per unit under absorption costing. Product cost per unit
QS 18-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold 3,900. Each racket was sold at a price of $80. Fixed overhead costs are $60,000, and fixed selling and administrative costs are $64,200. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $24.00 $ 1.00 Required: Prepare an income statement under absorption costing....
Exercise 19-1 Computing unit and inventory costs under absorption costing LO P1 1.25 points Trio Company reports the following information for the current year, which is its first year of operations. 15 per unit 18 per unit eBook Hint Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units $ 75,000 per year $ 150,000 per year 25,000 units 19,000 units 6,000 units...
PA5-5 (Algo) Comparing Full Absorption and Variable Costing [LO 55-1] Consider the following information for Presidio Inc.'s most recent year of operations. $ Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($270,940 + 2,300 units) Total variable selling expenses ($13 per unit sold) Total fixed general and administrative expenses 2,300 1,450 620.00 60.00 90.00 40.00 117.80 19,850.00 73,000.00...
! Required information Exercise 19-7 Income reporting under absorption costing and variable costing LO P2 The following information applies to the questions displayed below.) Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 330 per unit 100,000 units 103,250 units 3,250 units $ 422,500 260,000 $ 682,500 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $130)...
E5-20 Comparing Full Absorption Costing and Variable Costing [LO 5S-1] The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: 3,000 2,500 350 80 Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($225,000 - 3,000 units) Total variable selling expenses ($15 per unit sold) Total fixed general and administrative expenses 60 10 75 37,500...
Variable vs. Absorption Costing $ 50.00 No Video for this worksheet Selling price per unit Manufacturing costs Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $ 11.00 REQUIRED: Calculate the unit cost and prepare a traditional 6.00 $ 3.00 120,000 Selling and administrative expenses Variable per unit sold Fixed per year $ 4.00 70,000 Year 1 Units in beginning inventory Units produced during the year Units sold during the year Units in...
Exercise 06-2 Computing unit and inventory costs under variable costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations. Assume instead that Trio Company uses variable costing $ 15 per unit 16 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units 4 per unit $ 160,000 per year 20,800 units...
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