A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:Selling priceUnits in beginning inventoryUnits producedUnits soldUnits in ending inventoryVariable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrative expenseFixed costs:Fixed manufacturing overheadFixed selling and administrative expense1542,5602,2303305124$.1516$92,160$11,150The tegross margin for the month under absorption costing is:Multiple Chotce$62.440S15.610,K Prev4: of 10Next >ere to search

Here in this question, we are required to calculate gross margin under absorption costing method.…

Answered: A manufacturing company that produces a…

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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Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per-unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 122 290 6,600 6,590 300 $ 42 $ 26 $ 2 $ 21 $ 151,800 $ 46,130 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing.
OCO, Inc. has provided the following data concerning their operations in the most recent month with respect to their only product: Beginning inventory: 9,000 Units Produced: 42,000 Units Sold: 41,300 Variable Costs per unit: Direct materials: $164 Direct Labor: $111 Manufacturing Overhead: $41 Selling and Administrative: $63 Fixed Costs: Manufacturing overhead: $1,343,160 Selling and administrative: $1,981,161 The selling price is $533. What is the variable costing unit product cost?
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Foggs Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year Year 2 1,000 Year 1 Units in beginning inventory 0 $21.00 $67.00 $ 10 $6 $5 $ 520,000 $6 $ 63,000 Units produced during the year 10,000 13,000 Units sold during the year 9,000 11,000 Units in ending inventory 1,000 3,000 The unit product cost under absorption costing in Year 2 is closest to: Multiple Choice $40.00
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Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory $136 0 Units produced 3,400 Units sold 2,920 Units in ending inventory 480 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead $46 $24 $4 Variable selling and administrative expense $7 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expenses $68,000 $14,600 The total gross margin for the month under the absorption costing approach is: a. $108,040 b. $122,640 c. $102,200 d. $210,240
YaHo, Ltd. is a manufacturer that produces a single product. Below is data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 81,450 Units sold 77,820 Selling price per unit: $13.80 Variable costs per unit: Direct materials $2.90 Direct labor $2.05 Variable manufacturing overhead $1.30 Variable selling and administrative expense $1.05 Fixed costs (per month): Fixed manufacturing overhead $195,480 Fixed selling and administrative expense $218,825 Calculate net income for the month using variable costing. a. $173,236 b. $153,781 c. $115,120 d. $100,237 e. $91,525
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense The total gross margin for the month under absorption costing is: Multiple Choice $81,900 $21,840 $128,430 $139,230 $ 144 0 3,020 2,730 290 $ 47 $21 $ 16 $9 $90,600 $35,490
On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept: Line Item Description Amount Amount Sales (13,400 units) $750,400 Variable cost of goods sold: Variable cost of goods manufactured $343,200 Inventory, October 31 (2,200 units) (48,400) Total variable cost of goods sold (294,800) Manufacturing margin $455,600 Variable selling and administrative expenses (201,000) Contribution margin $254,600 Fixed costs: Fixed manufacturing costs $62,400 Fixed selling and administrative expenses 53,600 Total fixed costs (116,000) Operating income $138,600 Prepare an income statement under absorption costing. Round all final answers to whole dollars. Maryville Equipment CompanyAbsorption Costing Income StatementFor the Month Ended October 31 Line Item Description Amount Amount $Sales Cost of goods sold:…
The company’s variable costs per unit and total fixed costs have been constant from month to month
The following data is for a company that produces a single product. Selling price 193 Units in beginning inventory Units produced 3,090 2,910 Units sold Variable costs per unit: Direct materials 53 Direct labor 59 2$ Variable manufacturing overhead Variable selling and administrative expense 15 13 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 89,610 $ 8,730 Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using variable costing. d. Prepare an income statement for the month using absorption costing. e. Reconcile the variable costing and absorption costing net operating incomes for the month. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What is the unit product cost for the month under variable costing? Cost Per…

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