During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units....
During 2021, its first year of operations, XYZ Company produced 25,000
units and sold 19,000 units. During 2022, XYZ Company produced 30,000
units and sold 32,000 units. The following information was taken from
XYZ's accounting records for 2021 and 2022:
2021 2022
Direct materials cost per unit ............ $18 $17
Direct labor cost per unit ................ $16 $21
Variable overhead cost per unit ........... $7 $9
Variable selling & admin cost per unit .... $4 $6
Fixed overhead (total cost) ............... $105,000 $144,000
Fixed selling & admin (total cost) ........ $88,000 $96,000
Assume the selling price of XYZ Company's product was $64 per unit for
both years.
Calculate XYZ Company's 2022 gross profit using absorption costing.
Assume XYZ Company employs a LIFO inventory cost flow assumption. Homework Answers
Unit product cost 2021 = (105000/25000)+18+16+7 = 45.20
Unit product cost 2022 = (144000/30000)+17+21+9 = 51.80
Sales (2022) = 32000*64 = 2048000
Cost of goods sold = (30000*51.80+2000*45.20) = 1644400
Gross profit = Sales-Cost of goods sold = 2048000-1644400 = 403600
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During 2021, its first year of operations, XYZ Company produced 25,000
units and sold 19,000 units....
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units....
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units. During 2022, XYZ Company produced 30,000 units and sold 32,000 units. The following information was taken from XYZ's accounting records for 2021 and 2022: 2021 2022 Direct materials cost per unit ............ $18 $17 Direct labor cost per unit ................ $16 $21 Variable overhead cost per unit ........... $7 $9 Variable selling & admin cost per unit .... $4 $6 Fixed overhead (total cost)...
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units....
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units. During 2022, XYZ Company produced 30,000 units and sold 34,000 units. The following information was taken from XYZ's accounting records for 2021 and 2022: 2021 2022 Direct materials cost per unit ............ $14 $17 Direct labor cost per unit ................ $20 $24 Variable overhead cost per unit ........... $9 $11 Variable selling & admin cost per unit .... $6 $8 Fixed overhead (total cost)...
Assume that a company produced 10,000 units and sold 8,000 units during its first year of...
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Fixed selling and administrative expense Per Unit $240 $ 85 $ 60 $ 10 $ 11 $ 2 $ 250,000 If the company's unit product cost under absorption costing is $194, then what is the amount of fixed manufacturing overhead...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 88,000 $ 44,500 $ 22,600 33,700 $ 56,300 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,800 25,600 $ 41,400 $ 5,900 28,800 $ 34,700 Required: 1. With respect to cost classifications...
Trez Company began operations this year. During this first year, the company produced 100,000 units and...
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80.000 units. The absorption costing Income statement for this year follows Sales (80,000 units 550 per unit) $4,000,000 Cost of goods sold Beginning inventory $ e Cost of goods manufactured (100,000 units * $38 per unit) 3, eee,eee Cost of goods available for sale 3,600,000 Ending inventory (20,000 $30) 600,000 Cost of goods sold 2,480,ce Gross margin 1,680,000 Selling and administrative expenses 560,...
Trez Company began operations this year. During this first year, the company produced 100,000 units and...
Trez Company began operations this year. During this first year,
the company produced 100,000 units and sold 80,000 units. The
absorption costing income statement for this year follows.
Sales (80,000 units × $40 per unit)
$
3,200,000
Cost of goods sold
Beginning inventory
$
0
Cost of goods manufactured (100,000 units × $20 per unit)
2,000,000
Cost of goods available for sale
2,000,000
Ending inventory (20,000 × $20)
400,000
Cost of goods sold
1,600,000
Gross margin
1,600,000
Selling and administrative...
In its first year of business, the McCormik Co. produced and sold 14,000 units and incurred...
In its first year of business, the McCormik Co. produced and sold 14,000 units and incurred the following costs: Manufacturing Costs: Cost Per Unit Direct Material $20 Direct Labor $5 Var. Manufacturing Overhead $8 Fixed Manufacturing Overhead $21 Variable Selling and Admin. $3 Fixed Selling and Admin. $9 Units Produced 15,000 Units Sold 13,000 Selling Price Per Unit 100 Tax Rate 25% Show the net income under absorption and variable costing. Calculate Net income for 13,000 sold and 15,000 produced.
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 88,000 $ 44,500 $ 22,600 33,700 $ 56,300 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,800 25,600 $ 41,400 $ 5,900 28,800 $ 34,700 Required: 1. With respect to cost classifications...
Trez Company began operations this year. During this first year, the company produced 100,000 units and...
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. $4,000, eee Sales (se, eee units * $50 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,eee units * $3e per unit) Cost of good avaitable for sale Ending inventory t2e,eee x $38) Cost of goods sold Gross margin Selling and administrative expenses Net income 3,eee eee 3,000,000...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 88,000 $ 44,500 $ 22,600 33,700 $ 56,300 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,800 25,600 $ 41,400 $ 5,900 28,800 $ 34,700 Required: 1. With respect to cost classifications...
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Fixed selling and administrative expense Per Unit $240 $ 85 $ 60 $ 10 $ 11 $ 2 $ 250,000 If the company's unit product cost under absorption costing is $194, then what is the amount of fixed manufacturing overhead...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 88,000 $ 44,500 $ 22,600 33,700 $ 56,300 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,800 25,600 $ 41,400 $ 5,900 28,800 $ 34,700 Required: 1. With respect to cost classifications...
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80.000 units. The absorption costing Income statement for this year follows Sales (80,000 units 550 per unit) $4,000,000 Cost of goods sold Beginning inventory $ e Cost of goods manufactured (100,000 units * $38 per unit) 3, eee,eee Cost of goods available for sale 3,600,000 Ending inventory (20,000 $30) 600,000 Cost of goods sold 2,480,ce Gross margin 1,680,000 Selling and administrative expenses 560,...
Trez Company began operations this year. During this first year,
the company produced 100,000 units and sold 80,000 units. The
absorption costing income statement for this year follows.
Sales (80,000 units × $40 per unit)
$
3,200,000
Cost of goods sold
Beginning inventory
$
0
Cost of goods manufactured (100,000 units × $20 per unit)
2,000,000
Cost of goods available for sale
2,000,000
Ending inventory (20,000 × $20)
400,000
Cost of goods sold
1,600,000
Gross margin
1,600,000
Selling and administrative...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 88,000 $ 44,500 $ 22,600 33,700 $ 56,300 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,800 25,600 $ 41,400 $ 5,900 28,800 $ 34,700 Required: 1. With respect to cost classifications...
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. $4,000, eee Sales (se, eee units * $50 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,eee units * $3e per unit) Cost of good avaitable for sale Ending inventory t2e,eee x $38) Cost of goods sold Gross margin Selling and administrative expenses Net income 3,eee eee 3,000,000...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 88,000 $ 44,500 $ 22,600 33,700 $ 56,300 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,800 25,600 $ 41,400 $ 5,900 28,800 $ 34,700 Required: 1. With respect to cost classifications...
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