1. Enusah Motors Limited assembles and sells motor vehicles. It uses an actual costing system, in which unit costs are calculated on a monthly basis. The selling price per motor vehicle is ¢44,000. Data relating to January, February and March of 2020 are: January February March Unit data: Production (units) Sales (units) 1000 1000 900 900 1040 940 100 60 20 Variable-cost data: Manufacturing costs per unit produced Selling and Admin costs per unit sold ¢16,000 ¢16,000 ¢16,000 8,000 8,000 8,000 Fixed-cost data Manufacturing costs Selling and Admin costs ¢2,400,000 ¢2,400,000 ¢2,400,000 $1,600,000 ¢1,600,000 ¢1,600,000 equired: Compute the product cost per unit under both variable and absorption costing methods Present income statements for Enusah Motors in January, February and March of 2020 under

1. Enusah Motors Limited assembles and sells motor vehicles. It uses an actual costing system, in which unit costs are calculated on a monthly basis. The selling price per motor vehicle is ¢44,000. Data relating to January, February and March of 2020 are: January February March Unit data: Production (units) Sales (units) 1000 1000 900 900 1040 940 100 60 20 Variable-cost data: Manufacturing costs per unit produced Selling and Admin costs per unit sold ¢16,000 ¢16,000 ¢16,000 8,000 8,000 8,000 Fixed-cost data Manufacturing costs Selling and Admin costs ¢2,400,000 ¢2,400,000 ¢2,400,000 $1,600,000 ¢1,600,000 ¢1,600,000 equired: Compute the product cost per unit under both variable and absorption costing methods Present income statements for Enusah Motors in January, February and March of 2020 under

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter Required: $ 60 1,500,000 4,500,000 9 12 10 6 500,000 units Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit 500,000 units 600,000 units
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Intercontinental, inc., provides you with the following data for its single product Sales price per unit $ 50.00 Fixed costs (per month) Selling, general, and administrative (SG&A) 1,350,000 Manufacturing overhead 2,700,000 Variable costs (per unit) Direct labor 7.00 Direct materials 12.00 Manufacturing overhead 10.00 SG&A…
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Morwenna, Inc. reports the following information for August: Sales Revenue $700,000 Variable Cost of Goods Sold 170,000 Fixed Cost of Goods Sold 45,000 Variable Selling and Administrative Costs 160,000 Fixed Selling and Administrative Costs 75,000 Calculate the operating income for August using absorption costing.
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