marginal costing & absorption costing
Baker Asia produces and sells a single product, “Cheese Brownies”. The following data have been extracted from its budget and standard cost for the year 2019:
RM
Selling price per unit 80
Manufacturing cost:
Variable per unit produced 15
Direct materials 7
Variable overhead 4
Fixed production overhead costs are budgeted at RM 180,000 per annum. Normal production levels are expected to be 9,000 units per annum.
Budgeted selling and administrative cost are as follows:
Variable per unit sold 6
Fixed per year 30,000
Year 1 Year 2
Unit in beginning inventory 0 ?
Units produced during the year 10,000 6,000
Units sold during the year 8,000 8,000
You are required to:
Prepare income statement for Baker Asia using:(20marks)
(i) Marginal costing
(ii) Absorption Costing.
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marginal costing & absorption costing
Baker Asia produces and sells a single product, “Cheese Brownies”. The following data have been extracted from its budget and standard cost for the year 2019: RMSelling price per unit 80Manufacturing cost: Variable per unit produced 15Direct materials 7 Variable overhead 4 Fixed production overhead costs are budgeted at RM 180,000 per annum. Normal production levels are expected to be 9,000 units per annum. Budgeted selling and administrative cost are as follows:Variable per unit sold ...
cost accounting
Baker Asia produces and sells a single product, “Cheese Brownies”. The following data have been extracted from its budget and standard cost for the year 2019: RMSelling price per unit 80Manufacturing cost: Variable per unit produced 15Direct materials 7 Variable overhead 4 Fixed production overhead costs are budgeted at RM 180,000 per annum. Normal production levels are expected to be 9,000 units per annum. Budgeted selling and administrative cost are as follows: Variable per unit sold ...
Absorption and variable costing income statements Spaulding Manufacturing Co. has determined the cost of manufacturing a...
Absorption and variable costing income statements Spaulding Manufacturing Co. has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year $ 5 Direct materials.. Direct labor Variable factory overhead............ Fixed factory overhead............ Total cost.. Operating statistics for March and April include the following $15 March April Units produced...................... 12,000 8,000 Units sold.......... 8,000 12,000 Selling and administrative expenses (all fixed).. $12,000 $12,000 The selling price is $20 per unit. There...
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...
Review Problem 1: Contrasting Variable and Absorption Costing Dexter Corporation produces and sells a single product,...
Review Problem 1: Contrasting Variable and Absorption Costing Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves Selected cost and operating data relating to the product for two years are given below: Selling price per unit. $50 Manufacturing costs: Variable per unit produced: Direct materials. $11 Direct labor .......... Variable manufacturing overhead... Fixed manufacturing overhead per year ........ $120,000 Selling and administrative expenses: Variable per unit sold....... $4 Fixed per...
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Variable vs. Absorption Costing Selling price per unit 50.00 No Video for this worksheet $ Mandturing cost Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 11.00 6.00 REQUIRED: Calculate the unit cost and prepare a traditional Income statements using absorption costing. Calculate the unit cost and prepare a variable costing Income statement. Check your work using the values on the check figure tab. $ 120,000 Selling and administrative expenses Variable per unit...
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Variable-Costing and Absorption-Costing Income Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows: Variable costs per unit: Direct materials 9 Direct labor 2.85 $ 1.92 1.60 9 Variable overhead Variable selling $ 0.90 Fixed costs per year: $180,000 Fixed overhead Selling and administrative $ 96,000 During the year, Borques produced 200,000 wooden pallets and sold 204,300 at $9 each. Borques had 8,200 pallets in...
Variable-Costing and Absorption-Costing Income Borques Company produces and sells wooden pallets that are used for moving...
Variable-Costing and Absorption-Costing Income
Borques Company produces and sells wooden pallets that are used
for moving and stacking materials. The operating costs for the past
year were as follows:
Variable costs per unit:
Direct materials
$ 2.85
Direct labor
$ 1.92
Variable overhead
$ 1.60
Variable selling
$ 0.90
Fixed costs per year:
Fixed overhead
$180,000
Selling and administrative
$ 96,000
During the year, Borques produced 200,000 wooden pallets and
sold 204,300 at $9 each. Borques had 8,200 pallets in...
Required Information Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 [The...
Required Information Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below) Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 46,000 units and sold 38.000 units at a price of $140 per unit. 60 5552.000 Manufacturing costs Direct materials per unit 60 Direct labor per unit 22 Variable overhead per unit Fixed overhead...
Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 The...
Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 The following information applies to the questions displayed below] Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units ata price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and...
Absorption and variable costing income statements Spaulding Manufacturing Co. has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year $ 5 Direct materials.. Direct labor Variable factory overhead............ Fixed factory overhead............ Total cost.. Operating statistics for March and April include the following $15 March April Units produced...................... 12,000 8,000 Units sold.......... 8,000 12,000 Selling and administrative expenses (all fixed).. $12,000 $12,000 The selling price is $20 per unit. There...
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...
Review Problem 1: Contrasting Variable and Absorption Costing Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves Selected cost and operating data relating to the product for two years are given below: Selling price per unit. $50 Manufacturing costs: Variable per unit produced: Direct materials. $11 Direct labor .......... Variable manufacturing overhead... Fixed manufacturing overhead per year ........ $120,000 Selling and administrative expenses: Variable per unit sold....... $4 Fixed per...
Variable vs. Absorption Costing Selling price per unit 50.00 No Video for this worksheet $ Mandturing cost Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 11.00 6.00 REQUIRED: Calculate the unit cost and prepare a traditional Income statements using absorption costing. Calculate the unit cost and prepare a variable costing Income statement. Check your work using the values on the check figure tab. $ 120,000 Selling and administrative expenses Variable per unit...
Variable-Costing and Absorption-Costing Income Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows: Variable costs per unit: Direct materials 9 Direct labor 2.85 $ 1.92 1.60 9 Variable overhead Variable selling $ 0.90 Fixed costs per year: $180,000 Fixed overhead Selling and administrative $ 96,000 During the year, Borques produced 200,000 wooden pallets and sold 204,300 at $9 each. Borques had 8,200 pallets in...
Variable-Costing and Absorption-Costing Income
Borques Company produces and sells wooden pallets that are used
for moving and stacking materials. The operating costs for the past
year were as follows:
Variable costs per unit:
Direct materials
$ 2.85
Direct labor
$ 1.92
Variable overhead
$ 1.60
Variable selling
$ 0.90
Fixed costs per year:
Fixed overhead
$180,000
Selling and administrative
$ 96,000
During the year, Borques produced 200,000 wooden pallets and
sold 204,300 at $9 each. Borques had 8,200 pallets in...
Required Information Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below) Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 46,000 units and sold 38.000 units at a price of $140 per unit. 60 5552.000 Manufacturing costs Direct materials per unit 60 Direct labor per unit 22 Variable overhead per unit Fixed overhead...
Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 The following information applies to the questions displayed below] Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units ata price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and...
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