A business operated at 100% of capacity during its first month, with the following results: $655,400 Sales (113 units) Production costs (141 units): $88,404 Direct materials 22,571 Direct labor 39,500 Variable factory overhead 37,619 188,094 Fixed factory overhead Operating expenses: Variable operating expenses $5,228 3,439 8,667 Fixed operating expenses The amount of gross profit that would be reported on the absorption costing income statement is Oa. $495,991 Ob. $504,658 Oc. S655,259 Od. $499,430

A business operated at 100% of capacity during its first month, with the following results: $655,400 Sales (113 units) Production costs (141 units): $88,404 Direct materials 22,571 Direct labor 39,500 Variable factory overhead 37,619 188,094 Fixed factory overhead Operating expenses: Variable operating expenses $5,228 3,439 8,667 Fixed operating expenses The amount of gross profit that would be reported on the absorption costing income statement is Oa. $495,991 Ob. $504,658 Oc. S655,259 Od. $499,430

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials $60,000 Direct labor 15,000 Variable factory overhead 27,000 Fixed factory overhead 24,000 126,000 Operating expenses: Variable operating expenses $5,690 Fixed operating expenses 3,830 9,520 The amount of contribution margin that would be reported on the variable costing income statement is a.$479,880 b.$470,480 c.$388,880 d.$392,710
A business operated at 100% capacity during its first month of operations, with the following results: Sales (90 units) $90,000 Production costs (100 units) Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 Total manufacturing costs 69,000 Operating expenses: Variable Variable operating expenses $ 8,000 Fixed operating expenses 1,000 Total operating expenses 9,000 Use this information to complete a variable costing income statement. Please when completing the variable costing income statement , offer details where the numbers are coming from.
Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 30 per unit Direct labor $ 50 per unit Variable overhead $ 40 per unit Fixed overhead $ 6,600,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,250,000 per year Units produced 110,000 units Units sold 80,000 units Sales price $ 360 per unit 1. Prepare an income statement for the year using variable costing.2. Prepare an income statement for the year using absorption costing.
A 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 4,091
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $150 per unit. Manufacturing costs Direct materials per unit $ 66 Direct labor per unit $ 25 Variable overhead per unit $ 9 Fixed overhead for the year $ 572,000 Selling and administrative costs Variable selling and administrative cost per unit $ 12 Fixed selling and administrative cost per year $ 110,000 2a. Assume the company uses variable costing. Determine its product cost per unit.
A business operated at 100% of capacity during its first month, with the following results: Sales (108 units) $648,000 Production costs (135 units): Direct materials $87,561 Direct labor 22,356 Variable factory overhead 39,123 Fixed factory overhead 37,260 186,300 Operating expenses: Variable operating expenses $5,388 Fixed operating expenses 4,203 9,591 The amount of operating income that would be reported on the absorption costing income statement is a.$523,380 b.$647,865 c.$519,177 d.$489,369
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $40,000 20,000 2,000 7,000 $ 8,000 1,000 $90,000 69,000 9,000 What is the amount of the income from operations that would be reported on the variable costing income statement? a. $18,000 O b. $21,000 O c. $18,900 O d. $18,200
A business operated at 100% of capacity during its first month, with the following results: Sales (101 units) $484,800 Production costs (126 units): Direct materials $65,379 Direct labor 16,692 Variable factory overhead 29,212 Fixed factory overhead 27,821 139,104 Operating expenses: Variable operating expenses $5,236 Fixed operating expenses 4,281 9,517 The amount of gross profit that would be reported on the absorption costing income statement is a.$363,779 b.$373,296 c.$484,674 d.$368,060
A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $60,000 15,000 27,000 24,000 126,000 Variable operating expenses $5,150 Fixed operating expenses 4,080 9,230 The amount of contribution margin that would be reported on the variable costing income statement is a. $470,770 Ob. $389,170 Oc. $393.250 Od. $479,880
Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (2,500 units) Cost of goods sold: Cost of goods manufactured (2,900 units) Inventory, April 30 (400 units) Total cost of goods sold Gross profit Selling and administrative expenses Operating income $75,400 (10,400) $92,500 (65,000) $27,500 (16,050) $11,450 If the fixed manufacturing costs were $18,096 and the fixed selling and administrative expenses were $7,860, prepare an income statement according to the i variable costing concept. Round all final answers to whole dollars.
A business operated at 100% of capacity during its first month, with the following results: Sales (103 units) $515,000 Production costs (129 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $69,725 17,802 31,154 29,669 Operating expenses: Variable operating expenses Fixed operating expenses 8,612 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $387,938 Ob. $396,551 Oc. $514,871 Od. $391,410 $5,140 3,472 148,350 20
Zeklen Company had the following data for the month: Variable costs per unit: Direct materials $6.00 Direct labor 2.00 Variable overhead 1.00 Variable selling expenses 0.60 Fixed overhead is $2,000 per month; it is applied to production based on normal activity of 1,000 units. During the month, 3,000 units were produced. Zeklen started the month with 200 units in beginning inventory, with unit product cost equal to this month's unit product cost. A total of 1,200 units were sold during the month at a price of $10. Selling and administrative expense for the month, all fixed, totaled $2,400. What is the unit product cost under absorption costing?