Variable & Absorption Costing
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price | $ | 115 |
| Units in beginning inventory | 1,120 | |
| Units produced | 2,520 | |
| Units sold | 3,330 | |
| Units in ending inventory | 310 | |
| Variable costs per unit: | ||
| Direct materials | $ | 25 |
| Direct labor | $ | 17 |
| Variable manufacturing overhead | $ | 2 |
| Variable selling and administrative expense | $ | 20 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 60,480 |
| Fixed selling and administrative expense | $ | 6,660 |
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
Required:
a. What is the unit product cost for the month under variable costing?
b. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)
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Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 108 770 2,400 2,850 320 $ $ $ $ 11 23 24 $57,600 $ 5,700 The company produces the same number of...
1) what is the amount of the difference between the variable costing and absorption costing net...
1) what is the amount of the difference between the variable
costing and absorption costing net operating incomes (losses)?
2) Whats the company's break-even point in unit sales?
is the above or below the actual unit sales?
Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 58,000 units and sold 54,000 units. Variable costs...
Nelter Corporation, which has only one product, has provided the following data concerning its most recent...
Nelter Corporation, which has only one product, has
provided the following data concerning its most recent month of
operations: Selling price $ 122 Units in beginning inventory 290
Units produced 6,600 Units sold 6,590 Units in ending inventory 300
Variable costs per unit: Direct materials $ 42 Direct labor $ 26
Variable manufacturing overhead $ 2 Variable selling and
administrative expense $ 21 Fixed costs: Fixed manufacturing
overhead $ 151,800 Fixed selling and administrative expense $
46,130 The company produces...
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent...
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Complete Absorption Costing vs. Variable Costing Income statements for Randeris Company, Year 1 & Year 2....
Complete Absorption Costing vs. Variable Costing Income
statements for Randeris Company, Year 1 & Year 2.
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Dodner Company uses an absorption costing system in accounting for the single product it manufactures. The...
Dodner Company uses an absorption costing system in accounting for the single product it manufactures. The following selected data are for the year 2020: Sales (20,000 $720,000 units) Direct materials $259,200 used Direct labor $86,400 costs Variable manufacturing $25,920 overhead Fixed manufacturing $34,560 overhead $43,200 Variable selling and administrative expenses Fixed selling and administrative expenses $144,000 The company produced 24,000 units and sold 20,000 units in 2020. Direct materials and direct labor are variable costs. One unit of direct material...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 96 Units in beginning inventory 600 Units produced 1,990 Units sold 2,140 Units in ending inventory 450 Variable costs per unit: Direct materials $ 26 Direct labor $ 20 Variable manufacturing overhead $ 2 Variable selling and administrative $ 17 Fixed costs: Fixed manufacturing overhead $ 43,780 Fixed selling and administrative $ 6,420 The company produces the same...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: $ 108 770 2,400 2,850 320 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 23 24 2 11 $57,600 $ 5.700 The company produces the same number...
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...
1. Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year...
1. Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $38.30 Direct labor 13.80 Fixed factory overhead 5.30 Variable factory overhead 4.70 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing $ Variable costing...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 108 770 2,400 2,850 320 $ $ $ $ 11 23 24 $57,600 $ 5,700 The company produces the same number of...
1) what is the amount of the difference between the variable
costing and absorption costing net operating incomes (losses)?
2) Whats the company's break-even point in unit sales?
is the above or below the actual unit sales?
Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 58,000 units and sold 54,000 units. Variable costs...
Nelter Corporation, which has only one product, has
provided the following data concerning its most recent month of
operations: Selling price $ 122 Units in beginning inventory 290
Units produced 6,600 Units sold 6,590 Units in ending inventory 300
Variable costs per unit: Direct materials $ 42 Direct labor $ 26
Variable manufacturing overhead $ 2 Variable selling and
administrative expense $ 21 Fixed costs: Fixed manufacturing
overhead $ 151,800 Fixed selling and administrative expense $
46,130 The company produces...
Complete Absorption Costing vs. Variable Costing Income
statements for Randeris Company, Year 1 & Year 2.
RANDERIS COMPANY - YEAR ONE 30,000 25,000 30 $ $ 10 Number of units produced Number of units sold Unit sales price Variable costs per unit: Direct materials, direct labor variable mfg. overhead Selling & administrative expenses Fixed costs per year: Manufacturing overhead Selling & administrative expenses $ 3 $ 150,000 $100,000 RANDERIS COMPANY - YEAR TWO 20,000 25,000 5,000 30 $ Number of...
Dodner Company uses an absorption costing system in accounting for the single product it manufactures. The following selected data are for the year 2020: Sales (20,000 $720,000 units) Direct materials $259,200 used Direct labor $86,400 costs Variable manufacturing $25,920 overhead Fixed manufacturing $34,560 overhead $43,200 Variable selling and administrative expenses Fixed selling and administrative expenses $144,000 The company produced 24,000 units and sold 20,000 units in 2020. Direct materials and direct labor are variable costs. One unit of direct material...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: $ 108 770 2,400 2,850 320 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 23 24 2 11 $57,600 $ 5.700 The company produces the same number...
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...
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