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1. The value of Bruno's actual ending finished goods inventory on the absorption costing basis was 2. The value of Bruno's actual ending finished goods inventory on the variable costing basis was 4. Bruno's total costs expensed this year on the absorption costing basis were 5. Bruno Inc's actual manufacturing contribution margin for the year calculated on the variable costing basis was 6. The total variable cost expensed currently by Bruno on the variable costing basis was 7. The difference between Bruno's operating income calculated on the absorption costing basis and calculated

1. The value of Bruno's actual ending finished goods inventory on the absorption costing basis was 2. The value of Bruno's actual ending finished goods inventory on the variable costing basis was 4. Bruno's total costs expensed this year on the absorption costing basis were 5. Bruno Inc's actual manufacturing contribution margin for the year calculated on the variable costing basis was 6. The total variable cost expensed currently by Bruno on the variable costing basis was 7. The difference between Bruno's operating income calculated on the absorption costing basis and calculated

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. The value of Bruno's actual ending finished goods inventory on the absorption costing basis was

2. The value of Bruno's actual ending finished goods inventory on the variable costing basis was

4. Bruno's total costs expensed this year on the absorption costing basis were

5. Bruno Inc's actual manufacturing contribution margin for the year calculated on the variable costing basis was

6. The total variable cost expensed currently by Bruno on the variable costing basis was

7. The difference between Bruno's operating income calculated on the absorption costing basis and calculated on the variable costing is

Bruno Company employs an absorption costing system for internal reporting purposes; however, the company is considering variable costing. Data regarding Bruno's planned and actual operations for the calendar year are presented below. Planned Activity Actual Activity Beginning Finished Goods 35,000 35,000 inventory in units Sales in units 140,000 125,000 Production in Units 140,000 130,000 The planned per unit cost figures shown in the next schedule were based on the estimated production and sale of 140,000 units for the year. Bruno uses a predetermined manufacturing overhead rate for applying manufacturing overhead to its product thus a combined manufacturing overhead rate of P 9.00 per unit was employed for absorption costing purposes. Any over-or underapplied manufacturing overhead is closed to the cost of goods sold account at the end of the reporting year. Planned Costs Per Unit Total Incurred Costs Direct Materials P 12.00 P1,680,000 P1,560,000 Direct Labor 9.00 1,260,000 1,170.000 Variable Manufacturing 4.00 560,000 520,000 Overhead Fixed manufacturing Overhead 5.00 Variable Selling expenses 700,000 715,000 8.00 1,120,000 1,000,000 Fixed selling expenses 7.00 980,000 980,000 Variable administrative expenses 2.00 280,000 250,000 Fixed administrative expenses 3.00 420,000 425,000 Total P 50.00 P7,000,000 P6,620,000 The beginning finished goods inventory for absorption costing purposes was valued at the previous year's planned unit manufacturing cost. Which was the same as the current planned unit manufacturing cost. There are no work in process inventories at either the beginning or the end of the year. The planned and actual unit selling prine was R 70 per unit
Transcribed Image Text:Bruno Company employs an absorption costing system for internal reporting purposes; however, the company is considering variable costing. Data regarding Bruno's planned and actual operations for the calendar year are presented below. Planned Activity Actual Activity Beginning Finished Goods 35,000 35,000 inventory in units Sales in units 140,000 125,000 Production in Units 140,000 130,000 The planned per unit cost figures shown in the next schedule were based on the estimated production and sale of 140,000 units for the year. Bruno uses a predetermined manufacturing overhead rate for applying manufacturing overhead to its product thus a combined manufacturing overhead rate of P 9.00 per unit was employed for absorption costing purposes. Any over-or underapplied manufacturing overhead is closed to the cost of goods sold account at the end of the reporting year. Planned Costs Per Unit Total Incurred Costs Direct Materials P 12.00 P1,680,000 P1,560,000 Direct Labor 9.00 1,260,000 1,170.000 Variable Manufacturing 4.00 560,000 520,000 Overhead Fixed manufacturing Overhead 5.00 Variable Selling expenses 700,000 715,000 8.00 1,120,000 1,000,000 Fixed selling expenses 7.00 980,000 980,000 Variable administrative expenses 2.00 280,000 250,000 Fixed administrative expenses 3.00 420,000 425,000 Total P 50.00 P7,000,000 P6,620,000 The beginning finished goods inventory for absorption costing purposes was valued at the previous year's planned unit manufacturing cost. Which was the same as the current planned unit manufacturing cost. There are no work in process inventories at either the beginning or the end of the year. The planned and actual unit selling prine was R 70 per unit
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