Here is question 3 a. Compute the unit product cost for year 1 and year 2...
Homework Answers
(Direct material+direct labour+Direct expenses+ Over heads) /total production
this is the fromula for calculating the unit price of the product..
(Direct expenses:it is the cost for accessories for the product)
(Overheads:It is the cost for the rent, power,transport,etc.,)
1. The income statement given in the case is given or prepared it?
It is given
The reason is that there are some errors in the income statement. For example warehouse rental from year 1 to year 2 should increase by $40,000 only and given income statement shows increase of $80,000.
That is how it is written.
2. Also it is said that for for each additional 20,000 barrels warehouse rental cost increases by $40,000. I think it should be 2000 and not 20,000 as the total barrels aged in eahc year are 50,000, 52,000, 56,000, and 62,000.
This is how it was written.
Please clarify on these. You may like to restrict the posting to me so that I can revise the given income statement and develop revised income statement as per requirement.
I restricted it to you
Add Answer to:
Here is question 3 a. Compute the unit product cost for year 1 and
year 2...
1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1...
1. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
2. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
3. Reconcile the difference between variable costing and
absorption costing net operating income in Year 1.
Walsh Company manufactures and...
Exercise 7.b Variable and Absorption Costing Unit Product costs and income statements (LUT 1. L07-2) Lynch...
Exercise 7.b Variable and Absorption Costing Unit Product costs and income statements (LUT 1. L07-2) Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $380,000 $290,000 During the year, the company produced 38,000 units and sold 18,000 units. The selling price of...
Problem 6-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6- 2] Haas Company manu...
Problem 6-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6- 2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing $ Direct materials 27 Direct labor 14 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: 6 1 $ 510,000 Fixed manufacturing overhead Fixed selling and administrative expenses 210,000 During its first year of operations, Haas produced...
Exercise 4-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2, LO4-3]...
Exercise 4-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2, LO4-3] Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 23 Direct labor $ 11 Variable manufacturing overhead $ 5 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 90,000 During its first...
Bracey Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials $ 28 Fixed costs...
Bracey Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials $ 28 Fixed costs per year: Direct labor $ 367,500 Fixed manufacturing overhead $ 389,550 Fixed selling and administrative expenses $ 66,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 24,500 units and sold 22,700 units. The selling price of...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] Lynch Company...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 12 Direct labor $ 3 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 324,000 Fixed selling and administrative $ 234,000 During the year, the company produced 27,000...
Problem 7-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7- 2] Haas...
Problem 7-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7- 2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead 28 20 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 150,000 $ 210,000 During its first year of operations, Haas produced 60,000 units and...
Problem 6-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] Haas Company...
Problem 6-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 20 Direct labor $ 12 Variable manufacturing overhead $ 4 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 960,000 Fixed selling and administrative expenses $ 240,000 During its first year of...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements (LO6-1, LO6-2] Lynch Company...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements (LO6-1, LO6-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: $ 13 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative 1 $ 288,000 $198,000 During the year, the company produced 24,000 units and sold 20,000 units. The...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 10 7 3 3 $380,000 $290,000 During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company's product is $61 per unit....
1. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
2. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
3. Reconcile the difference between variable costing and
absorption costing net operating income in Year 1.
Walsh Company manufactures and...
Exercise 7.b Variable and Absorption Costing Unit Product costs and income statements (LUT 1. L07-2) Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $380,000 $290,000 During the year, the company produced 38,000 units and sold 18,000 units. The selling price of...
Problem 6-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6- 2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing $ Direct materials 27 Direct labor 14 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: 6 1 $ 510,000 Fixed manufacturing overhead Fixed selling and administrative expenses 210,000 During its first year of operations, Haas produced...
Problem 7-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7- 2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead 28 20 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 150,000 $ 210,000 During its first year of operations, Haas produced 60,000 units and...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements (LO6-1, LO6-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: $ 13 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative 1 $ 288,000 $198,000 During the year, the company produced 24,000 units and sold 20,000 units. The...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 10 7 3 3 $380,000 $290,000 During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company's product is $61 per unit....
Most questions answered within 3 hours.
-
From past history, the scores on a statistics test are normally
distributed with a mean of...
asked 6 minutes ago -
Calculate the gravitational field strength on the highest peak
of Everest (8848 m above the Earth).
asked 6 minutes ago -
the energy value of carbohydrates is 4.0 cal/g. calculate the
energy in 250 g of carbohydrates,...
asked 8 minutes ago -
i
need the summary of this article “Why I Don’t Trust The Video Games
Cause Violence”...
asked 27 minutes ago -
Draw the reactants and products of the following
reaction:
3-ethyl-2-heptene + HOH → 3-ethyl-3-heptanol +
3-ethyl-2-heptanol...
asked 25 minutes ago -
Determine the ratio of adipic acid and butylene glycol that
should be used to obtain a...
asked 34 minutes ago -
Calculate the ratio of the resistance of 11.0 m of aluminum wire
2.5 mm in diameter,...
asked 27 minutes ago -
Kinkaid Co. is incorporated at the beginning of this year and
engages in a number of...
asked 31 minutes ago -
when setting up a simple pendulum, calculate the string length
required for the period to equal...
asked 50 minutes ago -
: A small but very close dense mass of 389 kg is brought close
to a...
asked 51 minutes ago -
Create a class called Hotel. The hotel class will track the
current reservations for your one-room...
asked 1 hour ago -
In space, a 4.0 kg metal ball moving 30 m/s has a head on
collision with...
asked 1 hour ago