ABC Company divided all of its costs and expenses into fixed and variable. Data for ABC...
ABC Company divided all of its costs and expenses into fixed and variable. Data for ABC Co's first year of operations is as follows:
Beginning inventory of finished goods 0
Units produced (no WIP) 10,000
Units sold 9,000
Units in ending inventory of finished
goods 1,000
Sales price $175 per unit
Variable Mfg costs $65 for each unit manufactured
Variable selling and Admin Expenses $25 per unit sold
Fixed manufacturing costs for year $100,000
Fixed selling and admin expenses for the year $250,000
Using the Absorption Method, calculate the following:
1. Cost of goods mfg for the year
2. The value of the ending inventory of finished goods
3. The cost of goods sold for the year
4. Net income for the year
Using direct costing
1. Ending inventory of finished goods
2. Manufacturing margin for the year
3. Net Income for the year
Homework Answers
Add Answer to:
ABC Company divided all of its costs and expenses into fixed and
variable. Data for ABC...
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.
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...
Variable and Absorption Costing Chandler Company sells its product for $104 per unit. Variable manufacturing costs...
Variable and Absorption Costing Chandler Company sells its product for $104 per unit. Variable manufacturing costs per unit are 545, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $15 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
CO D) Topple Company produces a single product. Operating data for the company and its absorption...
CO D) Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year are presented below. Units in beginning inventory 0 Units produced 9,000 Units sold 7,000 Sales $100,000 Less cost of goods sold: Beginning inventory 0 Add cost of goods manufactured 54,000 Goods available for sale 54,000 Less ending inventory 12,000 Cost of goods sold 42,000 Gross margin 58,000 Less selling and admin. expenses 28,000 Net operating income $30,000...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 4,000 Units sold 3,500 Units in ending inventory 500 Variable cost per unit: Direct materials $41 Direct labor $43 Variable mfg overhead Variable selling and admin $5 Fixed costs: Fixed mfg overhead $92,000 Fixed selling and admin $40,000 Assume that the sales price per unit is $180. Would absorption costing net income be...
Variable and Absorption Costing Grant Company sells its product for $57 per unit. Variable manufacturing costs...
Variable and Absorption Costing Grant Company sells its product for $57 per unit. Variable manufacturing costs per unit are $35, and fixed manufacturing costs at the normal operating level of 18,000 units are $90,000. Variable selling expenses are $5 per unit sold. Fixed administrative expenses total $155,000. Grant had 7,000 units at a per-unit cost of $40 in beginning inventory in 2016. During 2016, the company produced 18,000 units and sold 20,000. Would net income for Grant Company in 2016...
Variable and Absorption Costing Chandler Company sells its product for $100 per unit. Variable manufacturing costs...
Variable and Absorption Costing Chandler Company sells its product for $100 per unit. Variable manufacturing costs per unit are $40, and fixed manufacturing costs at the normal operating level of 10,000 units are $240,000. Variable selling expenses are $16 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2019. During 2019, the company produced 10,000 units and sold 8,000. Would net income for Chandler Company in 2019 be higher if calculated using variable costing or...
Variable and Absorption Costing Chandler Company sells its product for $116 per unit. Variable manufacturing costs...
Variable and Absorption Costing Chandler Company sells its product for $116 per unit. Variable manufacturing costs per unit are 551 and fed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $24 per unit sold. Fored administrative expenses total $104,000 Chandler had no beginning inventory in 2016 During 2016, the company produced 12.000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
Variable and Absorption Costing Chandler Company sells its product for $120 per unit. Variable manufacturing costs...
Variable and Absorption Costing Chandler Company sells its product for $120 per unit. Variable manufacturing costs per unit are $49, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $21 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
Variable and Absorption Costing Chandler Company sells its product for $116 per unit. Variable manufacturing costs...
Variable and Absorption Costing Chandler Company sells its product for $116 per unit. Variable manufacturing costs per unit are $51, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $24 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
Sierra Company incurs the following costs to produce and sell its only product. Variable costs per...
Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Direct materials $ 12 Direct labor $ 9 Variable manufacturing overhead $ 3 Variable selling and administrative expenses $ 4 Fixed costs per year: Fixed manufacturing overhead $ 120,000 Fixed selling and administrative expenses $ 300,000 During this year, 30,000 units were produced and 24,750 units were sold. The Finished Goods inventory account at the end of this year shows a balance of...
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...
Variable and Absorption Costing Chandler Company sells its product for $104 per unit. Variable manufacturing costs per unit are 545, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $15 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 4,000 Units sold 3,500 Units in ending inventory 500 Variable cost per unit: Direct materials $41 Direct labor $43 Variable mfg overhead Variable selling and admin $5 Fixed costs: Fixed mfg overhead $92,000 Fixed selling and admin $40,000 Assume that the sales price per unit is $180. Would absorption costing net income be...
Variable and Absorption Costing Grant Company sells its product for $57 per unit. Variable manufacturing costs per unit are $35, and fixed manufacturing costs at the normal operating level of 18,000 units are $90,000. Variable selling expenses are $5 per unit sold. Fixed administrative expenses total $155,000. Grant had 7,000 units at a per-unit cost of $40 in beginning inventory in 2016. During 2016, the company produced 18,000 units and sold 20,000. Would net income for Grant Company in 2016...
Variable and Absorption Costing Chandler Company sells its product for $100 per unit. Variable manufacturing costs per unit are $40, and fixed manufacturing costs at the normal operating level of 10,000 units are $240,000. Variable selling expenses are $16 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2019. During 2019, the company produced 10,000 units and sold 8,000. Would net income for Chandler Company in 2019 be higher if calculated using variable costing or...
Variable and Absorption Costing Chandler Company sells its product for $116 per unit. Variable manufacturing costs per unit are 551 and fed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $24 per unit sold. Fored administrative expenses total $104,000 Chandler had no beginning inventory in 2016 During 2016, the company produced 12.000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
Most questions answered within 3 hours.
-
For water, Kf = 1.86 °C∙kg/mole, Kb = 0.52 °C∙kg/mole and
density = 1.00 g/mL. Calculate...
asked 4 minutes ago -
Why in 100 words Social Darwinism have such broad appeal? please
type
asked 6 minutes ago -
Should we be concerned about corporations that just don't seem
to care if sexual harassment occurs?...
asked 10 minutes ago -
Plese use R-Studio to answer this question.
qbinom(p, size, prob) gives the smallest x value so...
asked 10 minutes ago -
A common laboratory reaction is the neutralization of an acid
with a base. When 41.2 mL...
asked 41 minutes ago -
A solid sphere of radius R and mass 10.0kg is placed on an
incline plane of...
asked 36 minutes ago -
You own a ‘Kiwi-Waffles’ restaurant in Auckland.
‘Kiwi-Waffles’ is a franchise that allows customers to customise...
asked 36 minutes ago -
Given a diploid sexual population of mammals where mutation,
selection and migration do not occur, and...
asked 38 minutes ago -
give anhydrides for the following acids? H3BO3, H3PO4,
HClO4
asked 51 minutes ago -
A beam of light consisting of two wavelengths, 546.0 nm and
409.5 nm, is used to...
asked 51 minutes ago -
Describe the safeguards for the various file systems and assess
how effective they are
asked 56 minutes ago -
Write as assignment statement that assigns WA to an existing
string variable state. Visual Studio 2019....
asked 54 minutes ago