Homework Answers
1. a)
Name of the business: JB Pvt. Ltd.
Place of business: Gaya, Bihar
Principle activity of business: Steel Utensils production
b)
Single product of business: Steel spoon
Actual units produced during first month: 500
Normal units produced during first month: 550
c)
Name and detail of one direct material used in production of spoon: Steel is the manob direct material used in the production of spoons. It is stocked at the beginning of the month and then further reordered when stock of raw materials falls to 50 units.
d)
Units sold during first month of production: 400 units
Price per unit during first month of production: $1.50 per unit
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Lo Introduction (1 mark) Create one business and state the profile of the business: a) Name...
Questions: 1) Determine the product (inventoriable) cost per unit under: a) Absorption costing [1 mark] b)...
Questions: 1) Determine the product (inventoriable) cost per
unit under: a) Absorption costing [1 mark] b) Variable costing. [1
mark]
2) Prepare the statement of profit and loss for periods 1-4
under absorption costing by using the gross margin approach. [12
marks]
3) Prepare the statement of profit and loss for periods 1-4
under variable costing by using the contribution margin approach.
[12 marks]
4) Reconcile the absorption and variable costing operating
profit figures for each period and explain the...
B U А. А 01 mark) Revelstoke Corporation manufactures product that has the following Per year...
B U А. А 01 mark) Revelstoke Corporation manufactures product that has the following Per year Per unit WOD 5.00 4.00 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses Fixed S&A expenses 5360.000 5.00 120.000 The company uses the absorption costing approach to cost.plus pricing. The pricing calculations are based on budgeted production and sales of 30,000 units per year, The company has invested 5600,000 in this product and expects a return on investment of...
Problem Two Straightforward Problem on Absorption versus Variable Costing (LO 2, 3, 4, 6) Cow Dippers, Inc. produ...
Problem Two Straightforward Problem on Absorption versus Variable Costing (LO 2, 3, 4, 6) Cow Dippers, Inc. produces non-fat frozen yogourt. The product is sold at wholesale in 10-litre commercial containers, which have the following price and variable costs. Sales price $30 Direct material 10 Direct labour 4 Variable overhead Budgeted fixed overhead in 20x4, the company's first year of operations, was $600,000. Actual production was 150,000 10-litre containers, of which 125,000 were sold. Cow Dippers, Inc. incurred the following...
Where there is a ? mark, there needs to be a formula (+B15-B5) Thanks! A 1...
Where there is a ? mark, there needs to be a formula (+B15-B5)
Thanks!
A 1 Chapter 6: Applying Excel 2 $50 $11 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 Variable per unit produced: 7 Direct materials 8 Direct labor 9 Variable manufacturing overhead 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year $6 $120,000 $70,000 14 15 Year 1 Year 2 16 Units in...
Explanation not necessary Under absorption costing, a unit of product includes which costs? A. direct material, dir...
Explanation not necessary Under absorption costing, a unit of product includes which costs? A. direct material, direct labor, and fixed manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and all variable manufacturing overhead D. direct material, direct labor, and manufacturing overhead During production, how are the costs in process costing accumulated? A to cost of goods sold B. to each individual department C. to each individual product D. to manufacturing overhead In...
A company reported the following information for their first quarter in business. 36,000 31,000 78 $...
A company reported the following information for their first
quarter in business.
36,000 31,000 78 $ Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) $ 2 $ 565,000 $ 18 $ 10 $ 3 $ 576,000 Required: 1. If the company uses absorption costing:...
Fill in the blank choices for questions 22-26: Administrative Beginning Contribution Cost driver Direct labor Direct...
Fill in the blank choices for questions
22-26:
Administrative
Beginning
Contribution
Cost driver
Direct labor
Direct labor-hours
Direct materials
Dollars of direct labor cost
Ending
Expensed
Fixed
Fixed manufacturing overhead
For the period ended
Income statement
Indirect labor
Indirect materials
Job cost
Level of activity
Machine-hours
Manufacturing
Manufacturing overhead
Margin
Name of company
Overapplied
Period
Predetermined overhead rate
Process cost
Selling
Statement of cost of goods manufactured
Total budgeted overhead
Underapplied
Variable costing
Work inprocess inventory
Show transcribed image text...
PA5-6 (Static) Comparing Full Absorption and Variable Costing [LO 5S-1) Dance Creations manufactures authentic Hawaiian hula...
PA5-6 (Static) Comparing Full Absorption and Variable Costing [LO 5S-1) Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt Direet materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses 9.60 3.40 1.05 0.40 Fixed Coat per Month Pixed manufacturing overhead Fixed selling and administrative expenses $16,125 4,950 sells. During the fire...
2. A new business operated at 100% of capacity during its first month and incurred the...
2. A new business operated at 100% of capacity during its first month and incurred the following costs: Production costs (2,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $180,000 240,000 280,000 100.000 $800,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If 400 units are sold during the month, what is total cost of production reported under Absorption Costing? a. $160,000 b. S640,000 c. $140,000 d. $800,000 e. $700,000
Practice Question: Absorption and Variable Costing Methods Kantanka Light Aircraft, a company that produces light recreational...
Practice Question: Absorption and Variable Costing Methods Kantanka Light Aircraft, a company that produces light recreational aircraft. Data concerning the company's operations appear below: Per Aircraft Selling price Per Month ¢100,000 Direct Material €19,000 Direct Labour €5,000 Variable manufacturing overhead €1,000 Fixed manufacturing overhead ¢70,000 Variable selling and admin expense €10,000 Fixed selling and administrative expense €20,000 Inventories January February March Beginning inventories 0 0 Units produced 2 4 5 Units sold 0 0 Ending inventories 1 Required: a) Compute...
Questions: 1) Determine the product (inventoriable) cost per
unit under: a) Absorption costing [1 mark] b) Variable costing. [1
mark]
2) Prepare the statement of profit and loss for periods 1-4
under absorption costing by using the gross margin approach. [12
marks]
3) Prepare the statement of profit and loss for periods 1-4
under variable costing by using the contribution margin approach.
[12 marks]
4) Reconcile the absorption and variable costing operating
profit figures for each period and explain the...
B U А. А 01 mark) Revelstoke Corporation manufactures product that has the following Per year Per unit WOD 5.00 4.00 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses Fixed S&A expenses 5360.000 5.00 120.000 The company uses the absorption costing approach to cost.plus pricing. The pricing calculations are based on budgeted production and sales of 30,000 units per year, The company has invested 5600,000 in this product and expects a return on investment of...
Problem Two Straightforward Problem on Absorption versus Variable Costing (LO 2, 3, 4, 6) Cow Dippers, Inc. produces non-fat frozen yogourt. The product is sold at wholesale in 10-litre commercial containers, which have the following price and variable costs. Sales price $30 Direct material 10 Direct labour 4 Variable overhead Budgeted fixed overhead in 20x4, the company's first year of operations, was $600,000. Actual production was 150,000 10-litre containers, of which 125,000 were sold. Cow Dippers, Inc. incurred the following...
Where there is a ? mark, there needs to be a formula (+B15-B5)
Thanks!
A 1 Chapter 6: Applying Excel 2 $50 $11 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 Variable per unit produced: 7 Direct materials 8 Direct labor 9 Variable manufacturing overhead 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year $6 $120,000 $70,000 14 15 Year 1 Year 2 16 Units in...
Explanation not necessary Under absorption costing, a unit of product includes which costs? A. direct material, direct labor, and fixed manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and all variable manufacturing overhead D. direct material, direct labor, and manufacturing overhead During production, how are the costs in process costing accumulated? A to cost of goods sold B. to each individual department C. to each individual product D. to manufacturing overhead In...
A company reported the following information for their first
quarter in business.
36,000 31,000 78 $ Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) $ 2 $ 565,000 $ 18 $ 10 $ 3 $ 576,000 Required: 1. If the company uses absorption costing:...
Fill in the blank choices for questions
22-26:
Administrative
Beginning
Contribution
Cost driver
Direct labor
Direct labor-hours
Direct materials
Dollars of direct labor cost
Ending
Expensed
Fixed
Fixed manufacturing overhead
For the period ended
Income statement
Indirect labor
Indirect materials
Job cost
Level of activity
Machine-hours
Manufacturing
Manufacturing overhead
Margin
Name of company
Overapplied
Period
Predetermined overhead rate
Process cost
Selling
Statement of cost of goods manufactured
Total budgeted overhead
Underapplied
Variable costing
Work inprocess inventory
Show transcribed image text...
PA5-6 (Static) Comparing Full Absorption and Variable Costing [LO 5S-1) Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt Direet materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses 9.60 3.40 1.05 0.40 Fixed Coat per Month Pixed manufacturing overhead Fixed selling and administrative expenses $16,125 4,950 sells. During the fire...
2. A new business operated at 100% of capacity during its first month and incurred the following costs: Production costs (2,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $180,000 240,000 280,000 100.000 $800,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If 400 units are sold during the month, what is total cost of production reported under Absorption Costing? a. $160,000 b. S640,000 c. $140,000 d. $800,000 e. $700,000
Practice Question: Absorption and Variable Costing Methods Kantanka Light Aircraft, a company that produces light recreational aircraft. Data concerning the company's operations appear below: Per Aircraft Selling price Per Month ¢100,000 Direct Material €19,000 Direct Labour €5,000 Variable manufacturing overhead €1,000 Fixed manufacturing overhead ¢70,000 Variable selling and admin expense €10,000 Fixed selling and administrative expense €20,000 Inventories January February March Beginning inventories 0 0 Units produced 2 4 5 Units sold 0 0 Ending inventories 1 Required: a) Compute...
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