please find answer A business operated at 100% of capacity during its firstmonth and incurred the following costs:Production costs (5,000 units)Direct materials$ 70,000Direct labor$ 20,000Variable factory overhead$ 10,000Fixed factory overhead$2,000$ 1,02,000Operating expenses:Variable operating expenses$ 17,000Fixed operating expenses$1,000$ 1,800If 1,000 units remain unsold at the end of the month andsales total $150,000 for the month, what would be theamount of income from operations reported on thevariable costing income statement?

Step 1: Understand the DataProduction Costs (5,000 units produced):Direct materials: $70,000Direct…

Answered: A business operated at 100% of capacity…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8EB: A production department within a company received materials of $7,000 and conversion costs of $5,000...

See similar textbooks

Similar questions

Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Please answer this question
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (2,500 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $42,500 85,000 47,500 12,500 O c. $5,250 O d. $5,760 $15,000 4,500 $187,500 19,500 If 75 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is O a. $6,210 O b. $5,625
Godo
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $390,000. The company produced 39,000 units, and sold 30,000 units, leaving 9,000 units in inventory at year-end. What is the value of ending inventory under absorption costing? Multiple Choice $99,000 $189,000 $90,000 $390,000 $489,000
The product unit cost for product A this year is
ABC Inc. incurred the following costs for the last 3 months: Production in units: 40,000 50,000 60,000 Factory rent: $ 10,000 $ 10,000 $ 10,000 Indirect Manufacturing costs: $ 50,000 $ 60,000 $ 70,000 Selling costs: $ 60,000 $ 75,000 $ 90,000 Commissions: $ 120,000 $ 150,000 $ 180,000 Assuming that ABC was to produce and sell 80,000 units next month, how much would the company incur in selling costs?
Subject is financial account
During March of the current year, Rolly Company purchased P3,500,000 raw materials. During the month, Reyes incurred P2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials P100,000; Decrease in work in process P150,000 and decrease in finished goods 75,000. If the goods available for sale is P7,500,000, what is the amount of finished goods at March 1? a.P203,000 b.P278,000 c.P 0 d.P 75,000
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $170,000 360,000 190,000 50,000 a. $36,000 b. $38,500 c. $41,500 $60,000 18,000 $770,000 78,000 If 500 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is
A business operates at 100% of capacity during its first month and incurs the following costs: Production costs (20,000 units): Direct materials $ 1,80,000 Direct labor 2,40,000 Variable factory overhead 2,80,000 Fixed factory overhead 1,00,000 $8,00,000 Operating expenses: Variable operating expenses $ 1,30,000 Fixed operating expenses 50,000 1,80,000 If 1,600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS