A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing? Selling price .$126Units in beginning inventory.Units produced...Units sold..8,5008,300200Units in ending inventory..Variable costs per unit:Direct materials .Direct labor.Variable manufacturing overhead...Variable selling and administrative.Fixed costs:Fixed manufacturing overhead. .Fixed selling and administrative .$36$52$2$9$127,500$91,300

Name: A manufacturing company that produces a single product has provided th
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing? Selling price .$126Units in beginning in

Business

Accounting

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing?

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

The predetermined manufacturing overhead rate is usually computed: Select one: A. During the financial year B. When overheads have been incurred C. At the beginning of the financial year D. At the end of the financial year
In order to sumarize production fr the past month both broken down by the number of each type of widget produced by each divisin, as well as the total number of each type of widget produced and the total production for each division, you would use
Primare Corporation has provided the following data concerning last month's manufacturing operations. Purchases of raw materials Indirect materials used in production $ 31,000 $ 4,570 Direct labor $ 59,000 Manufacturing overhead applied to work in process Underapplied overhead $ 88,200 $ 4,150 Inventories Beginning Raw materials $ 11,300 Ending $ 18,200 Work in process $ 54,200 $ 65,000 Finished goods $ 33,200 $ 42,900 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cost of goods manufactured for the month. Primare Corporation Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Direct materials used in production Total manufacturing costs added…
Prepare the Income Statement for the month ended 31 December 2021 using the variable costing method.
Marigold, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. George Robinson, president of Marigold, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations. Advertising Fire insurance premium for the factory building Sales office utilities. Air filters for the buffing machines used to produce the clamps Aluminum used to produce the clamps Rent on the factory building Freight to ship the clamps to customers Sales department executiv alaries Production supervisors' salaries Assembly line workers' wages $21,000 $6,000 $2,000 $1,875 $38,500 $10,500 $3,125 $43,000 $20,000 $57,000
Required: 1. What was the cost of raw materials put into production during the year? 2. How much of the materials in requirement 1 consisted of indirect materials? 3. How much of the factory labour cost for the year consisted of indirect labour? 4. What was the cost of goods manufactured for the year? 5. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? 6. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $33,200 of this balance is direct materials cost, how much of it is direct labour cost? Manufacturing overhead cost?
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year. Complete this question by entering your answers in the tabs below. The company uses a predetermined overhead rate of $24 per machine-hour to apply overhead cost to jobs. A total of 21,200 machine- hours were used during the year. Required 1 Required 2 Compute the amount of underapplied or overapplied overhead cost…
The following data refer to the month of May for Bonita Components. Fill in the blanks. Direct materials inventory, May 1 Direct materials inventory, May 31 Work-in-process inventory, May 1 Work-in-process inventory, May 31 Finished goods inventory, May 1 Finished goods inventory. May 31 Purchases of direct materials Cost of goods manufactured during the month Total manufacturing costs Cost of goods sold Gross margin Direct labor Direct materials used Manufacturing overhead Sales revenue 3,900 4,000 5,200 2,800 500 25,000 87,000 89,300 22,000 20,500 108,000
Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: Using the FIFO method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of ending work in process inventory. d. Determine the cost of units transferred out of the department during the month. Work in process, beginning: Units in process Percent complete with respect to materials Percent complete with respect to conversion Costs in the beginning inventory: Materials cost Conversion cost Units started into production during the month Units completed and transferred out Costs added to production during the month: Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent…
Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was S76,500 and at the end of the month was $69,750. The cost of goods manufactured for the month was $350,300. The actual manufacturing overhead cost incurred was $114,700 and the manufacturing overhead cost applied to jobs was $108,500. The adjusted cost of goods sold that would appear on the income statement for July is: A. S350,300 B. $363,250 C. S356,500 D. $344,100
The Wonder Drug Company's total overhead costs at various levels of activity are presented below: Month September October November December Assume that the overhead costs above consist of indirect labor, scheduling salaries, and maintenance. The breakdown of these costs for the month of November is as follows: Indirect labor (V) Maintenance (M) Scheduling Salaries (F) a. Direct Labor Hours 15,000 12,000 18,000 21,000 Total Overhead Direct Labor Hours High Required: (a.) Using the high-low method, determine the cost formula for maintenance. (b.) Express the company's total overhead costs in linear equation form. $ 21,000 $ 219,600 197,400 125,000 542,000 Low 12,000 Total Overhead $ 472,000 409,400 542,000 604,700 Difference
Use the information below to answer the following two questions: Ginseng Inc. uses a normal cost system to account for jobs it produces and closes out any over- or under-applied manufacturing overhead directly to Cost of Goods Sold at the end of each quarter. Beginning balances from the Balance Sheet on January 1 are shown in the table below. The table uses the following abbreviations: RM = Raw Materials Inventory A/P = Accounts Payable R/E = Retained Earnings WIP = Work in Process Inventory FG = Finished Goods Inventory Beg = Beginning Balance End = Ending Balance MOH = Manufacturing Overhead PP&E = Property, Plant & Equipment A summary of transactions completed in the quarter are shown below in $1,000's: Raw materials purchased on account b. Raw materials used in production (75% were direct; the remainder indirect) a. 22 24 100 Salaries & wages paid in cash (70% direct; 20% indirect; 10% selling & admin) d. Depreciation on PP&E (90% manufacturing; the remainder selling & admin) e.…