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
Q: business operated at 100% of capacity during its first month and incurred the following costs:…
A: Variable costing:Assigning only variable manufacturing costs to the product is referred to as…
Q: Walsh Company manufactures and sells one product. The following information pertains to each of the…
A: Solution Unit cost is the price incurred by a company to produce , store and sell one unit of a…
Q: business operated at 100% of capacity during its first month and incurred the following costs:…
A: Absorption Costing: The absorption costing is the method of costing in which the enterprise…
Q: Walsh Company manufactures and sells one product. The following information pertains to each of the…
A: Answer:- Using variable expenses soley in determining the product's overall costs is known as…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Variable costing income statement: This statement shows the net operating income after subtracting…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Answer:- Absorption costing method:- A type of costing known as "absorption costing" includes all…
Q: .A business operated at 100% of capacity during its first month, with the following results: Sales…
A: Introduction: Variable costing: Variable costing product cost = Direct materials + Direct labor +…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Solution- Calculation the amount of production cost for 16600 units (18300-1700 units) Production…
Q: Number of units produced Number of units sold Unit sales price Direct materials per unit Direct…
A: Lets understand the basics.Income statement can be prepared using,(1) Variable income statement…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: As per the absorption costing system, product cost includes both fixed and variable expenses.
Q: Vulture Company had the following results of operations for the first month of operations: Units…
A: Cost Volume Profit Analysis - It will used to derive the changes in costs and volume affect the…
Q: Godo Walsh Company manufactures and sells one product. The following information pertains to each…
A: The income statement is one of the various important financial statements of business. It tells the…
Q: The accounting records for Elsner Manufacturing Company Included the following cost information…
A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Absorption costing is a method of costing in which product cost is calculated by adding direct…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Direct materials (a) $ 178,400 Direct labour (b) $ 225,500 Variable factory OH (…
Q: Dilia Company incurred manufacturing overhead cost for the year as follows. $ 50/unit $ 35/unit…
A: The income statement is one of the important financial statements of the business. It records the…
Q: A business operated at 100% of capacity during its first month, with the following results: Sales…
A: Absorption Costing - Under this method of the income statement, all the product costs whether fixed…
Q: overhead erhead S: 234,900 251,700 92,100 $752,000 ng expenses $131,700 expenses 45,600 177,300 ain…
A: Answer : Total production cost per unit : Direct material $173,300 Direct labor 234,900…
Q: Easton Pump Company's planned production for the year just ended was 19,300 units. This production…
A: Variable costing is a method of costing in which product cost is calculated by adding direct…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Product cost :— Under absorption costing, production cost is calculated by adding direct material,…
Q: Ogilvy Company manufactures and sells one product. The following information pertains to each of the…
A: The income statement is prepared to find net income or losses incurred during the period.
Q: Assume the following information for each of the first two years of operations for a company that…
A: As per Super-Variable Costing or Throughput costing, only Direct material cost is considered as…
Q: The following information relates to a product produced by Faulkland Company: Direct materials $ 9…
A: Special order decision is made by the entity to decide if an additional order should be accepted or…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Variable costing is the method under which the contribution is computed at first, by deducting the…
Q: business operated at 100% of capacity during its first month and incurred Production costs (19,300…
A: The fixed overhead costs are allocated to the cost of a product based on a predetermined overhead…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Absorption costing is a technique for gathering and allocating to specific products the expenses…
Q: Lynch Company manufactures and sells a single product. The following costs were incurred during the…
A: The contribution margin is calculated as the difference between sales and variable costs. The gross…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Valuation of the inventory that is produced considering the production cost that is variable upon…
Q: Walsh Company manufactures and sells one product. The following information pertains to the…
A: The variable costing system is the method which only the variable cost for determining the operating…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Amount of inventory in hand means the inventory that is left with the entity at the end of the…
Q: Bracey Company manufactures and sells one product. The following information pertains to the…
A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…
Q: Pandora Brewing Company's planned production for the year just ended was 22,300 units. This…
A: Using variable costing, only variable manufacturing costs are recorded as the product cost. Using…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Under variable costing the unit product cost consists of cost incurred in the factory for production…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Introduction: A variable costing income statements report that subtracts variable expenses from…
Q: ses 255,200 103,100 $132,200 $760,800
A: Solution- Calculation the amount of production cost for 17800 units (19800 - 2000) Production cost…
Q: A business operated at 100% of capacity during its first month, with the following results: Sales…
A: Operating Income:- Operating income is refers to the income, which shows the amount of profit that a…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Under variable costing the unit product cost consists of cost incurred in the factory for production…
Q: The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at…
A: A variable costing system refers to the costing system in which manufacturing cost is computed after…
Q: A business operated at 100% of capacity during its first month, with the following results: Sales…
A: In variable costing statement ,we will value the inventory at variable factory cost . Fixed factory…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Variable costing is the method of costing, where only the variable costs are assigned to the cost of…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Income Statement :— It is one of the financial statement that shows profitability of company during…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Ending Inventory = Number of Units in Ending Inventory x Cost per Unit Cost per Unit under Variable…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Under variable costing the unit product cost consists of cost incurred in the factory for production…
Q: A business operated at 100% of capacity during its first month, with the following results: Sales…
A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…
Q: Cool Sky reports the following for its first year of operations. The company produced 42,000 units…
A: A Variable Costing Income Statement Where All The Variable Cost Are Deducted From Revenue And Get…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: 1 Sales (28,800 × $75) $2,160,000.00 2 Manufacturing costs (28,800 units): 3 Direct materials 1,209,600.00 4 Direct labor 316,800.00 5 Variable factory overhead 115,200.00 6 Fixed factory overhead 221,760.00 7 Fixed selling and administrative expenses 28,400.00 8 Variable selling and administrative expenses 34,900.00 The company is evaluating a proposal to manufacture 36,000 units instead of 28,800 units, thus creating an ending inventory of 7,200 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. Required: a. Prepare an estimated income statement, comparing operating results if 28,800 and 36,000 units are manufactured in (1) the absorption costing…A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $70,000 20,000 10,000 2,000 $17,000 1,000 $102,000 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on the absorption costing income statement is a. $54,000 b. $50,000 c. $70,000 d. not reportedMahoko PLC's planned production for the year just ended was 18,400 units. This production level was achieved, and 21,200 units were sold. Other data follow: Direct material used $ 552,000 Direct labor incurred 259,440 Fixed manufacturing overhead 390,080 Variable manufacturing overhead 198,720 Fixed selling and administrative expenses 329,360 Variable selling and administrative expenses 100,280 Finished-goods inventory, January 1 3,500 units The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year. Required: 1. What would be Mahoko PLC’s finished-goods inventory cost on December 31 under the variable-costing method? Note: Do not round intermediate calculations. 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year? 2-b. By what amount?
- A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,800 units): Direct materials $177,000 Direct labor 227,000 Variable factory overhead 261,600 Fixed factory overhead 100,400 $766,000 Operating expenses: Variable operating expenses $132,300 Fixed operating expenses 42,700 175,000 If 1,800 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. $60,498 b. $72,536 Oc. $69,636 O d. $85,545A business operated at 100% of capacity during its first month, with the following results: Sales (98 units) $490,000 Production costs (122 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $65,941 16,836 29,463 28,060 Oc. $389,996 Od. $367,456 Operating expenses: Variable operating expenses Fixed operating expenses 9,844 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $394,087 Ob. $489,878 140,300 $5,753 4,091A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory overhead 246,200 Fixed factory overhead 104,700 $761,700 Operating expenses: Variable operating expenses $122,200 Fixed operating expenses 49,300 171,500 If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a.$216,975 b.$71,270 c.$207,274 d.$61,474
- A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $174,500 232,600 249,000 104,200 $760,300 $134,700 43,300 Fixed operating expenses 178,000 If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is O a. $67,318 O b. $70,019 O c. $58,089 O d. $83,079Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: $ 27 $ 11 $ 6 $ 5 Fixed manufacturing overhead Fixed selling and administrative expenses $ 320,000 $ 60,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $55 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between…Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative. Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 30 $ 14 $ 3 $ 2 $ 320,000 $ 80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $57 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference…
- Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ 11 $ 4 $ 1 $ 1 $ 308,000 $ 218,000 During the year, the company produced 28,000 units and sold 24,000 units. The selling price of the company's product is $41 per unit. Required: 1. Assume the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year.A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $184,100 Direct labor 222,200 Variable factory overhead 241,500 Fixed factory overhead 104,400 $752,200 Operating expenses: Variable operating expenses $126,900 Fixed operating expenses 46,600 173,500 If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is:Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable cost per unit: Direct materials $ 18 Fixed costs per year: Direct labor $ 682,000 Fixed manufacturing overhead $ 824,000 Fixed selling and administrative expenses $ 220,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 62,000 units and sold 62,000 units. During its second year of operations, it produced 62,000 units and sold 59,800 units. In its third year, Ogilvy produced 62,000 units and sold 64,200 units. The selling price of the company’s product is $46 per unit. Assume the company uses super-variable costing: Compute the unit product cost for Year 1, Year 2, and Year 3. Prepare an income statement for Year 1, Year 2, and Year 3.