3.18 Perspire company produces a single product. Last year, the company's net operating income computed using absorption costing method was P6,400 and its operating income computed using variable costing method was P9,100. The company's unit product cost was P16 under variable costing and P20 under absorption costing. If the ending inventory consisted of 2,100 units, the beginning inventory in units must have been

3.18 Perspire company produces a single product. Last year, the company's net operating income computed using absorption costing method was P6,400 and its operating income computed using variable costing method was P9,100. The company's unit product cost was P16 under variable costing and P20 under absorption costing. If the ending inventory consisted of 2,100 units, the beginning inventory in units must have been

Name: 3.18Perspire company produces a single product. Last year, the compan
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Description: 3.18Perspire company produces a single product. Last year, the company's net operatingincome computed using absorption costing method was P6,400 and its operating incomecomputed using variable costing method was P9,100. The company's unit product co

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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Panta Corp had net income of P226,000 based on variable costing. Beginning and ending inventories were 7,400 units and 12,800 units, respectively. Assume the fixed overhead per unit was P5 for both the beginning and ending inventory. What is net income under absorption costing?
Data concerning Dakota Enterprises' operations last year appear below: Units in the Beginning Inventory -0- Units Units Produced 4,000 Units Units Sold 3,900 Units Selling Price Per Unit $140 Variable Costs Per Unit: Direct Material $41 Direct Labor 43 Manufacturing Overhead 6 Sellling and Administrative Costs 4 Fixed Costs in Total: Manufacturing Overhead $84,000 Selling and Administrative Costs 39,000 Match each of the following items with the proper amount. Unit Product Cost , Using Absorption Costing Unit Gross Margin…
A company has a net income of $918,000 based on variable costing method. Beginning and ending inventories were 56,800 units and 55,600 units. Assume the fixed overhead per unit was $2.15 for both the beginning and ending inventory. What will be the net income under absorption costing?
Nato Company was organized a year ago. The results of the company's first year of operations using the absorption costing method follow: Sales (40,000 units @ P33.75) Cost of goods manufactured (50,000 units @ 21) P1,050,000.00 Ending Inventory (10,000 units @ 21) Selling & administrative expenses Net Operating Income P1,350,000.00 P 210,000.00 P 420,000.00 P 90,000.00 The company's selling and administrative expenses consists of P300,000 per year in fixed expenses and P3.00 per unit sold in variable expenses. The product cost of P21 is computed as follows: Direct materials - P10.00; Direct labor – P4.00; Variable manufacturing overhead – P2.00; Fixed manufacturing overhead (P250,000/50,000 units) -P5.00. Compute for the operating income under variable costing.
74. Subject :- Accounting
XYZ Company uses normal costing. Following are various cost and inventory data for the just completed year: Sales revenue OMR420,000; Adjusted gross profit OMR175,000; Selling and admin expenses OMR145,000; Overapplied overhead OMR15,000; Prime costs OMR155,000; Work in process inventory has increased by OMR10,000; Finished goods inventory has decreased by OMR20,000. How much is the manufacturing overhead costs applied to work in process during the year? Select one: O a. OMR80,000 b. None of the answers given c. OMR95,000 d. OMR85,000 x e. OMR105,000
Nato Company was organized a year ago. The results of the company's first year of operations using the absorption costing method follow: Sales (40,000 units @P33.75), P 1,350,000; Cost of goods manufactured (50,000 units @ 21), p 1,050,000; Ending inventory (10,000 units @ 21), P_210,000; Selling & administrative expenses, P420,000; Net Operating income, P90,000. The company's selling and administrative expenses consists of P300,000 per year in fixed expenses and P3.00 per unit sold in variable expenses. The product cost of P21 is computed as follows: Direct materials - P10.00; Direct labor - P4.00; Variable manufacturing overhead - P2.00; Fixed manufacturing overhead (P250,000/50,000 units) –P5.00. Compute for the operating income under variable costing.
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price Direct materials Direct labor Variable overhead Fixed overhead $ 56.60 per unit $ 9.60 per unit $ 7.10 per unit $ 11.60 per unit $ 910,800 per year 1. Compute gross profit assuming (a) 66,000 units are produced and 66,000 units are sold and (b) 92,000 units are produced and 66,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 26,000 more units than it sells? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Compute gross profit assuming (a) 66,000 units are produced and 66,000 units are sold and (b) 92,000 units are produced and 66,000 units are sold. (a) 66,000 Units Produced and 66,000 (b) 92,000 Units Produced and 66,000 Units Sold Units Sold Sales $ 3,735,600 $ 5,207,200 Cost of goods sold 2,838,000 3,514,400 Gross profit $…
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Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price $ 57.50 per unit Direct materials $ 10.50 per unit Direct labor $ 8.00 per unit Variable overhead $ 12.50 per unit Fixed overhead $ 1,237,500 per year 1. Compute gross profit assuming (a) 75,000 units are produced and 75,000 units are sold and (b) 110,000 units are produced and 75,000 units are sold.2. By how much would the company’s gross profit increase or decrease from producing 35,000 more units than it sells?
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XYZ Company uses normal costing. Following are various cost and inventory data for the just completed year: Sales revenue OMR420,0003; Adjusted gross profit OMR175,000; Selling and admin expenses OMR145,000 ; Overapplied overhead OMR15,000 ; Prime costs OMR155,000; Work in process inventory has increased by OMR10,000 ; Finished goods inventory has decreased by OMR20,000. How much is the manufacturing overhead costs applied to work in process during the year? Select one: a. OMR80,000 b. None of the answers given c. OMR95,000 d. OMR85,000 x e. OMR105,000 The correct answer is: OMR95,000