5. A company has £8.00 per unit in variable production cost and £3.00 per unitin variable selling and administrative cost. The annual fixed production costis £300,000. The annual fixed selling and administrative cost is £50,000.a.Complete the table below for the number of units and dollar value ofending inventory for each year. Assume a FIFO flow.Units ProducedUnits SoldUnits in endinginventoryEnding inventoryusing variablecostingEnding inventoryusing full costingb.2004120,000110,0002005150,000120,0002006100,000140,0002007100,000100,000Assume that the selling price and cost structure stayed the same overthe 4-year period. How would the total income compare over theperiod between variable and full costing?

While using variable costing only variable cost is taken. Formula for the same = total variable cost…

Answered: 5. A company has £8.00 per unit in…

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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The level of inventory of a manufactured product has increased by 7,949 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $12.00 $5.00 Unit operating expenses of the period 4.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$71,541 decrease b.$39,745 increase c.$39,745 decrease d.$71,541 increase
74. Subject :- Accounting
Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead Belle Company's product is sold for $74 per unit a Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $300,000 per year. Compute the net income under variable costing. Multiple Choice O с $76,000 $176,000 $260,680 70,000 units 42,000 units $ 22 per unit $ 24 per unit $ 3 per unit $ 490,000 in total $126.000
The beginning inventory is 16,100 units. All of the units that were manufactured during the period and 16,100 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $41 per unit, and variable manufacturing costs are $96 per unit. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income.
Prepare the Income Statement for the year ended 31 December 2022 using the Marginal costing and Absorption costing methods. Opening inventory Nil Number of units manufactured 5 000 Number of units sold 4 500 Selling price per unit R200 Direct material cost per unit R14 Direct labour cost per unit R23 Variable manufacturing overheads cost per unit R12 Variable selling and administrative cost per unit sold R3 Fixed manufacturing overhead cost R200 000 Fixed selling and administrative costs R400 000
3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 48,000 units, costs were stable, and sales were 49,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". 5. What is operating income for November?
The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Fixed Unit manufacturing costs of the period $7.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.920 decrease Ob. 161.928 increase O$54.187 increase d. 554.107 decrease Variable $10.00
3. CONCEPTUAL CONNECTION Suppose 200,000 EERES WEIC pro sold) but that the company had a beginning finished goods inventory of 10,000 tents produced in the prior year at $40 per unit. The company follows a first-in, first-out policy for its inventory (meaning that the units produced first are sold first for purposes of cost flow). What effect does this have on the income statement? Show the new statement. Problem 2-55 Cost of Goods Manufactured, Cost of Goods Sold Hayward Company, a manufacturing firm, has supplied the following information from its ac- counting records for the month of May: Direct labor cost $10,500 Material handling $ 3,750 Purchases of raw materials 3,475 Materials inventory, May 1 Work-in-process inventory, May 1 Finished goods inventory, May 1 Materials inventory, May 31 Work-in-process inventory, May 31 Finished goods inventory, May 31 15,000 Supplies used Factory insurance Commissions paid Factory supervision Advertising 675 12,500 350 6,685 2,500 9,500 2,225…
The level of inventory of a manufactured product has increased by 7,859 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 2.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $78,590 increase Ob. $62,872 increase Oc. $78,590 decrease Od. $62,872 decrease
Subject: acounting

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