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Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its blueberry crop was small. The following data have been gathered for the summer quarter of 2017: 9,000 8,700 $ 60 $ 8 Beginning inventory (cases) Cases produced Cases sold Sales price per case Direct materials per case Direct labor per case Variable manufacturing overhead per case Total fixed manufacturing overhead Variable selling and administrative cost per case Fixed selling and administrative cost $9 $3...
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Fill in the blanks please
Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows: Sales (75,000 units) $4,500,000 Production costs (80,000 units) Direct material 1,320,000 Direct labor 1,080,000 Manufacturing overhead: Variable 816,000 Fixed 480,000 Operating expenses: Variable 252,000 Fixed 360,000 Depreciation on equipment 90.000 Real estate taxes 27,000 Personal property taxes (inventory & equipment) 43,200 Personnel department expenses 45,000 a. Prepare an income statement based on full absorption costing....
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Variable her. its blueberry crop was 5-42. Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its blueberr small. The following data have been gathered for the summer quarter of 2017: 9,000 8,700 Beginning inventory (cases).. Cases produced...... Cases sold .............. Sales price per case. . . . . ... Direct materials per case...... Direct labor per case ............... Variable manufacturing overhead per case...... Total fixed manufacturing overhead. Variable selling and administrative cost per...
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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...
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Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $1,104,000 $2,064,000 759,000 1,419,000 345,000 645,000 286,000 326,000 $ 59,000 $ 319,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 33,000 23,000 2017 33,000 43,000 b. Variable cost per...
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Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($46 per unit)
$
1,104,000
$
2,024,000
Cost of goods sold ($31 per unit)
744,000
1,364,000
Gross margin
360,000
660,000
Selling and administrative expenses
287,000
322,000
Net income
$
73,000
$
338,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017
Units produced
34,000
34,000
Units sold
24,000
44,000
Variable cost per...
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Exercise 06-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows Manufacturing costs Direct materials Direct labor Overhead costs Variable 30 per unit 50 per unit 40 per unit $6,300,en (per year) Fixed Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $...
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Problem 6-23 Absorption and Variable Costing; Production
Constant, Sales Fluctuate [LO6-1, LO6-2, LO6-3]
Please help me answer these questions!
Problem 6-23 Absorption and Variable Costing; Production Constant, Sales Fluctuate [LO6-1, LO6-2, LO6-3] Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who...
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Problem 7-23 Absorption and Variable Costing; Production
Constant, Sales Fluctuate
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing
company, at the beginning of the year. Getting the company through
its first quarter of operations placed a considerable strain on Ms.
Tyler’s personal finances. The following income statement for the
first quarter was prepared by a friend who has just completed a
course in managerial accounting at State University.
Tami’s Creations, Inc.
Income Statement
For the Quarter Ended March 31...
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BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations Sales Cost of goods sold Gross margin Selling general and administrative expenses Net income (loss) 0 $ 0 Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)? margin 2. Complete the following income statements using variable costing. 320 workstations 300 workstations BUSINESS SOLUTIONS Variable Costing Income Statements 300 Production volume (units) workstations Sales volume...
Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its blueberry crop was small. The following data have been gathered for the summer quarter of 2017: 9,000 8,700 $ 60 $ 8 Beginning inventory (cases) Cases produced Cases sold Sales price per case Direct materials per case Direct labor per case Variable manufacturing overhead per case Total fixed manufacturing overhead Variable selling and administrative cost per case Fixed selling and administrative cost $9 $3...
Fill in the blanks please
Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows: Sales (75,000 units) $4,500,000 Production costs (80,000 units) Direct material 1,320,000 Direct labor 1,080,000 Manufacturing overhead: Variable 816,000 Fixed 480,000 Operating expenses: Variable 252,000 Fixed 360,000 Depreciation on equipment 90.000 Real estate taxes 27,000 Personal property taxes (inventory & equipment) 43,200 Personnel department expenses 45,000 a. Prepare an income statement based on full absorption costing....
Variable her. its blueberry crop was 5-42. Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its blueberr small. The following data have been gathered for the summer quarter of 2017: 9,000 8,700 Beginning inventory (cases).. Cases produced...... Cases sold .............. Sales price per case. . . . . ... Direct materials per case...... Direct labor per case ............... Variable manufacturing overhead per case...... Total fixed manufacturing overhead. Variable selling and administrative cost per...
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...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $1,104,000 $2,064,000 759,000 1,419,000 345,000 645,000 286,000 326,000 $ 59,000 $ 319,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 33,000 23,000 2017 33,000 43,000 b. Variable cost per...
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($46 per unit)
$
1,104,000
$
2,024,000
Cost of goods sold ($31 per unit)
744,000
1,364,000
Gross margin
360,000
660,000
Selling and administrative expenses
287,000
322,000
Net income
$
73,000
$
338,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017
Units produced
34,000
34,000
Units sold
24,000
44,000
Variable cost per...
Exercise 06-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows Manufacturing costs Direct materials Direct labor Overhead costs Variable 30 per unit 50 per unit 40 per unit $6,300,en (per year) Fixed Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $...
Problem 6-23 Absorption and Variable Costing; Production
Constant, Sales Fluctuate [LO6-1, LO6-2, LO6-3]
Please help me answer these questions!
Problem 6-23 Absorption and Variable Costing; Production Constant, Sales Fluctuate [LO6-1, LO6-2, LO6-3] Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who...
BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations Sales Cost of goods sold Gross margin Selling general and administrative expenses Net income (loss) 0 $ 0 Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)? margin 2. Complete the following income statements using variable costing. 320 workstations 300 workstations BUSINESS SOLUTIONS Variable Costing Income Statements 300 Production volume (units) workstations Sales volume...