A business operated at 100% of capacity during its first month, with the following results: Sales (160 units)   $160,000 Production costs (200 units):      Direct materials $100,000    Direct labor 20,000    Variable factory overhead 10,000    Fixed factory overhead     4,000 134,000       Operating expenses:      Variable operating expenses $ 12,000    Fixed operating expenses     2,000 14,000 What is the amount of the manufacturing margin that would be reported on the variable costing income statement?

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Computation of Operating Income Sales  (96)                         = $480,000 Less- Cost of goods…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Calculate the sales price and cost per unit.

Q: shmart, Inc., began operations this year. The company produced 1,000 units and sold 1,000 units at a…

A: Solution: Net income under absorption costing will be computed by first determining gross profit and…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Absorption costing also called as historical costing is the practice of charging both fixed and…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: Product cost is the amount of cost incurred by the entity on the making of the goods. It includes…

Q: A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: Sales (90 units)   $90,000 Production costs (100 units)        Direct materials $40,000…

A: Variable costing income statement refers to all the variable costs which are subtracted from income…

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, with the following results: Sales…

A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…

Q: Itzy Corporation provides the following information for the month of February based on the…

A: Variable Costing: Product Cost under Variable costing includes direct material cost, direct…

Q: Assume the following information for a company that produced 10,000 units and sold 9,000 units…

A: Step 1: Gross margin can be calculated by subtracting the Cost of goods sold (product cost) from the…

Q: A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable…

A: Income Statement:Income statement consists of the part of financial statements, prepared to know…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Under the variable costing, fixed manufacturing overhead cost is considered as a period cost.…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Calculate the per unit cost as follows: Formulas:

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Variable costing:  Sales $90,000Product cost (Variable manufacturing cost)$40,000 Direct…

Q: Prior to the first month of operations ending October 31, Marshall Inc. estimated the following…

A: Income statement in the cost accounting can be prepared using two methods; Absorption costing and…

Q: A company produces a single product. Last year, fixed manufacturing overhead was $25,000, variable…

A: Formula: Net income = Total Revenues - Total expenses.

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Contribution Margin: To get the contribution margin, take the selling price per unit and subtract…

Q: Per unit information for Product M of Adolf Corporation is provided below: $80 per unit Direct…

A: Lets understand the basics. In variable costing period cost are total of fixed cost and all variable…

Q: 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement…

A: The contribution margin is calculated as the difference between sales and variable costs.Gross…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A:

Q: A business operated at 100% capacity during its first month of operations, with the following…

A: In a variable costing income statement, the variable expenses are subtracted from sales to derive…

Q: a. 1. Prepare an estimated income statement, comparing operating results if 25,600 and 28,800 units…

A: To determine the product cost of a company two types of costing methods are used which are variable…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: g overhead costs releasec nted to $23,500. What w come last year?

A: Answer : Net Operating income using absorption costing : Net Operating income Under  Variable…

Q: If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, the…

A: Variable costing:   Variable costing is the method that is used by the management (managers) for…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Formula: Contribution margin = sales - variable cost Deduction of variable cost from sales value…

Q: A business operated at 100% of capacity during its first month, with the following results: $655,400…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Preparation of income statement under absorption costing and variable costing system are as follows.

Q: If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the…

A: The difference between Total Sales and Total Variable Cost is known as Contribution. All the direct…

Q: Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the…

A: The variable costing method only considers the direct variable costs which are related to the…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Absorption costing is one of the techniques used to calculate the amount of profit generated by the…

Q: Prepare an income statement for Jomar Box Company under the following methods: a.Absorption Costing…

A: The major difference between marginal costing and absorption costing is treatment for closing stock.…

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, with the following results: Sales…

A: In variable costing statement ,we will value the inventory at variable factory cost . Fixed factory…

Q: The following information is for a company that produced 10,000 units and sold 9,0000 units during…

A: Solution: The difference in variable cost and absorption is that of treatment of fixed manufacturing…

Q: Farrow Company reports the following annual results.   Contribution Margin Income Statement Per…

A: Special Order Decision is an accounting method which is used to make decision regarding making or…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.