Homework Answers
1. Using Variable costing :-
i). Unit Product cost for one fire place : 215
Calculation:
unit product cost using variable costing.
| Direct materials | 135 |
| Direct Labor | 43 |
| Variable Manufacturing OH | 37 |
| Unit Production Cost | 215 |
ii) contribution margin income statement for the year.
| Sales (420*4500) | 1890000 | |
| Less Variable expenses | ||
| variable costs of goods sold (4500*37) | -166500 | |
| variable selling and administrative expenses (45*4500) | -202500 | |
| Contribution margin | 1521000 | |
| Less Fixed expenses | ||
| fixed manufacturing overhead | -210000 | |
| fixed selling and administrative expenses | -190000 | |
| Net operating income | 1121000 |
iii). Number of fire places required to break even : 2500
Calculation:
| Breakeven units | = fixed cost/contribution |
| Contribution per unit | = selling price - variable cost |
| Contribution (420-135-43-37-45) | 160 |
| Fixed cost (210000+190000) | 400000 |
| Breakeven units | =fixed cost/contribution |
Breakeven units = 400,000/160 = 2500 units
2. Using Absorbtion costing :-
i). Unit Product cost for one fire place : 257
Calculation:
Unit product cost using Absorbtion costing.
| Direct materials | 135 |
| Direct labor | 43 |
| Variable manufacturing overhead | 37 |
| fixed manufacturing overhead (=210000/5000) | 42 |
| Unit product cost | 257 |
ii). Income statement for the year
| Sales (420*4500) | 1,890,000 |
| costs of goods sold (4500*37) | (166,500) |
| Gross margin | 1,723,500 |
| Selling and administrative expenses (202500+190000) | 392,500 |
| Net operating income | 1,331,000 |
Add Answer to:
Paste B I U- Cells - - A Alignment Number Conditional Format as Cell Formatting Table...
Addison, Inc. makes a single product, an indoor fireplace, and has provided data from last year...
Addison, Inc. makes a single product, an indoor fireplace, and
has provided data from last year of operations. The Controller has
asked you to compare income statements if the company used the
variable costing approach vs. the absorption costing
report.
А B C D E 1 Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follows: 2 $420 5 6 7 $135 $43 $37 $210,000 8 9 3 Selling price per fireplace 4 Manufacturing...
Paste Lut [B Copy * Format Painter B I U B ab. 191 Clipboard Font Alignme...
Paste Lut [B Copy * Format Painter B I U B ab. 191 Clipboard Font Alignme EFG Hint? Variable Income Statement contribution margin) For Year Ended December 31 34 Sales 36,000 x 140 $5,040,000 35 variable costs: 36 Var, product cost 90 x 36,000 $3,240,000 37 Var. selling and Admin Exp. 396,000 38 Total Variable cost 3,636,000 39 Contribution margin $1,404,000 40 Fixed costs: 41 Fixed overhead 528,000 42 Fixed Selling and Admin Exp. 105,000 43 Total Fixed costs 633,000...
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 $385.000 $295,000 During the year, the company produced 35,000 units and sold 17,000 units. The selling price of the company's product is $58 per unit. Required: 1. Assume that the company uses absorption...
Requirea: 1. Prepare the company's income statement in the contribution format using variable costing. Whitman Company...
Requirea: 1. Prepare the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement Sales $ 875,000 Variable expenses: 875,000 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative 160,000 210,000 Fixed selling and administrative 370,000 505,000 Net operating income $ 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement. Reconciliation of Variable Costing and...
Please solve for the cells with question marks and show excel equation A1 X fx Chapter...
Please solve for the cells with question marks and show excel
equation
A1 X fx Chapter 4: Applying Excel A $4 3 Data 4 Selling price per unit $50 5 Manufacturing costs: 6 Variable per unit produced: 7 Direct materials $11 8 Direct labor $6 9 Variable manufacturing overhead $3 10 Fixed manufacturing overhead per year $120,000 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year $70,000 14 15 Year 1 Year 2 16 Units...
1 Addison, Inc. makes a single product, an indoor fireplace, and has provided data from last...
1 Addison, Inc. makes a single product, an indoor fireplace, and has provided data from last year of operations. The Controller has asked you to compare income statements if the company used the variable costing approach vs. the absorption costing report. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. .Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in...
Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages...
Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $37. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory 22,000 20,000 2,000 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative 2 4. Total variable cost per unit $ 24 $ 82,500 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 117,500...
What am I missing? $ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost...
What am I missing?
$ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 262,500 Selling expense + 18,750 Administrative expense 18,750 300.000 75.000 Contribution margin Fixed expenses Selling expense Administrative expense $ 37,500 15,000 Fixed manufacturing overhead Net operating income 52.500 22.500 $ Reg < Prey 5 of 8 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations.
The company’s absorption costing income statement for the year
appears below:
Whitman Company
Income Statement
Sales (42,000 units
× $41.10 per unit)
$
1,726,200
Cost of goods sold
(42,000 units × $21 per unit)
882,000
Gross margin
844,200
Selling and
administrative expenses
525,000
Net operating
income
$
319,200
The company’s selling and administrative expenses consist of
$315,000 per year in fixed expenses and $5 per unit sold in...
Variable costs per unit: Manufacturing: Direct materials $ 21 Direct labor $ 13 Variable manufacturing overhead...
Variable costs per unit: Manufacturing: Direct materials $ 21 Direct labor $ 13 Variable manufacturing overhead $ 3 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 400,000 Fixed selling and administrative expenses $ 60,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $89 per unit. Required:...
Addison, Inc. makes a single product, an indoor fireplace, and
has provided data from last year of operations. The Controller has
asked you to compare income statements if the company used the
variable costing approach vs. the absorption costing
report.
А B C D E 1 Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follows: 2 $420 5 6 7 $135 $43 $37 $210,000 8 9 3 Selling price per fireplace 4 Manufacturing...
Paste Lut [B Copy * Format Painter B I U B ab. 191 Clipboard Font Alignme EFG Hint? Variable Income Statement contribution margin) For Year Ended December 31 34 Sales 36,000 x 140 $5,040,000 35 variable costs: 36 Var, product cost 90 x 36,000 $3,240,000 37 Var. selling and Admin Exp. 396,000 38 Total Variable cost 3,636,000 39 Contribution margin $1,404,000 40 Fixed costs: 41 Fixed overhead 528,000 42 Fixed Selling and Admin Exp. 105,000 43 Total Fixed costs 633,000...
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 $385.000 $295,000 During the year, the company produced 35,000 units and sold 17,000 units. The selling price of the company's product is $58 per unit. Required: 1. Assume that the company uses absorption...
Requirea: 1. Prepare the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement Sales $ 875,000 Variable expenses: 875,000 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative 160,000 210,000 Fixed selling and administrative 370,000 505,000 Net operating income $ 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement. Reconciliation of Variable Costing and...
Please solve for the cells with question marks and show excel
equation
A1 X fx Chapter 4: Applying Excel A $4 3 Data 4 Selling price per unit $50 5 Manufacturing costs: 6 Variable per unit produced: 7 Direct materials $11 8 Direct labor $6 9 Variable manufacturing overhead $3 10 Fixed manufacturing overhead per year $120,000 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year $70,000 14 15 Year 1 Year 2 16 Units...
1 Addison, Inc. makes a single product, an indoor fireplace, and has provided data from last year of operations. The Controller has asked you to compare income statements if the company used the variable costing approach vs. the absorption costing report. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. .Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in...
Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $37. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory 22,000 20,000 2,000 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative 2 4. Total variable cost per unit $ 24 $ 82,500 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 117,500...
What am I missing?
$ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 262,500 Selling expense + 18,750 Administrative expense 18,750 300.000 75.000 Contribution margin Fixed expenses Selling expense Administrative expense $ 37,500 15,000 Fixed manufacturing overhead Net operating income 52.500 22.500 $ Reg < Prey 5 of 8 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:...
Whitman Company has just completed its first year of operations.
The company’s absorption costing income statement for the year
appears below:
Whitman Company
Income Statement
Sales (42,000 units
× $41.10 per unit)
$
1,726,200
Cost of goods sold
(42,000 units × $21 per unit)
882,000
Gross margin
844,200
Selling and
administrative expenses
525,000
Net operating
income
$
319,200
The company’s selling and administrative expenses consist of
$315,000 per year in fixed expenses and $5 per unit sold in...
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