ABC Company had Php200,000 income using absorption costing. ABC has no variable manufacturing costs. Beginning inventory was Php15,000 and ending inventory was Php22,000. Income under variable costing would have been
Q: Aces inc, a manufacturer of tennis rackets, began operations this year. The company produced 6,200…
A: Under variable costing, only variable manufacturing costs (like Direct materials, Direct Labor,…
Q: F Company, which uses the high-low method, reported total costs of $24 per unit at its lowest…
A: Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly…
Q: Captain America Company has operating income of P50,000 using direct costing for a given period.…
A: Solution: Calculate Net Income under Absorption Costing: Particulars Amount Net Income under…
Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…
A:
Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…
A: Increase in inventory = 18,000 units - 12,000 units = 6,000 units If there is increase in inventory,…
Q: F Company, which uses the high-low method, reported total costs of $24 per unit at its lowest…
A: Variable cost per unit =6000010000=$6
Q: Bolman Inc has only variable costs and fixed costs. A review of the company's records disclosed that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: During its first year of operations, a company produced The following costs were incurred during the…
A: Under absorption costing, the product cost consists of bot variable and fixed. Under variable…
Q: The cost per unit associated with the production of Xen Merchandising are the following: Direct…
A: Marginal cost refers to variable cost which has to be incurred to produce a additional unit of…
Q: Mallard Corporation uses the product cost concept of product pricing. Below is cost information for…
A: Desired profit can be calculated by multiplying the expected rate of return with the amount of…
Q: Mallard Corporation uses the product cost concept of product pricing. Below is cost information for…
A: Fixed Factory overhead cost =$82,000 Total units sold = 45,000 Thus, Fixed Factory overhead cost per…
Q: Gale Company's income under absorption costing was Php120,000 lower than its income under variable…
A: Variable production cost = $210 + $24 = 186 per unit VARIABLE PRODUCTION COST PER UNIT +…
Q: Mallard Corporation uses the product cost concept of product pricing. Below is cost information for…
A: The desired profit is calculated as required rate of return on invested assets.
Q: Razor Ltd had net income of 918,000 based on variable costing. Beginning and ending inventories were…
A: Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…
Q: The Southern Corporation manufactures a single product and has the following cost structure:…
A: Variable costing is a method of cost accounting which excludes fixed manufacturing overhead from the…
Q: ridewater Company uses the product cost concept of applying the cost-plus approach to product…
A: Product cost concept The costs incurred in the manufacturing of a product are referred to as its…
Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…
A: Increase in inventory = 18,000 - 12,000 = 6,000 units If there is an increase in inventory, variable…
Q: . has only variable costs and fixed costs. A review of the company's records disclosed that when…
A: Fixed costs are those costs which remains constant at any level of activity within a relevant range…
Q: Chance Inc. sold 2,600 units of its product at a price of $114 per unit. Total variable cost per…
A: Given the following information: Chance Inc. sold 2,600 units of its product at a price of $114 per…
Q: Under Absorption Costing, Net sales of Pacquiao Incorporated totaled P500,000 and the gross profit…
A: Gross profit under absorption costing = P500,000 x 35% = P175,000 Fixed manufacturing overhead…
Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…
A: Income using variable costing = absorption costing income - (ending inventories - Beginning…
Q: Wonder Woman Company produced 10,000 units and sold 9,000 units. Fixed manufacturing overhead costs…
A: Under absorption costing method, all types of cost are allocated based on the number of units sold.
Q: The following data relate to Lobo Corporation for the year just ended: Sales revenue $750,000 Cost…
A: Contribution refers to earnings left after deducting all direct costs from the sales revenue. It is…
Q: Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for…
A: Following are the calculation of ending inventory under variable coting:
Q: Lavender Company’s income under absorption costing was P 3,600 lower than its income under variable…
A: Variable production cost=Total variable cost-Variable selling cost=P 9 - P 1=P 8
Q: Dake Corporation's relevant range of activity is 2,200 units to 5,000 units. When it produces and…
A: SOLUTION- Indirect manufacturing costs are production costs that cannot be directly associated with…
Q: Bolman Inc has only variable costs and fixed costs. A review of the company's records disclosed that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: A review of Olaf Corporation's accounting records found that at a volume of 90,000 units, the…
A: The question is based on the concept of Cost Accounting.
Q: The following costs have been estimated based on sales of 30,000 units: Total Annual Costs…
A: Particulars Percent That Is Variable Variable Cost Fixed Cost Direct materials 100% 300000 0…
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: ABC Company has the following data at the end of its fiscal year: Prime costs…
A: Under variable costing the product cost includes only variable costs. Product costs are under…
Q: Spock Company incurs the following costs to produce and sell a single product. Variable costs per…
A: The variable Costing is a Management Accounting concept, where the overhead classification is made…
Q: Gigondas Incorporated had the following information: Avtivity Driver Unit Variable Cost Level of…
A: Formula: Unit Contribution margin = Selling price per unit - Variable cost per unit
Q: The Mavis Company uses an absorption-costing system based on standard costs. Total variable…
A: Gross margin = Revenue - Cost of goods sold Operating Income = Gross margin - Total operating costs…
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: The Southern Corporation manufactures a single product and has the following cost structure:…
A: Ending inventory = Units produced - units sold = 6230 units - 6030 units = 200 units
Q: Kluber, Inc. had net income of $918,000 based on variable costing. Beginning and ending inventories…
A: Absorption costing is a method of costing where it accounts for all cost in manufacturing. Net…
Q: Balerio Corporation's relevant range of activity is 8,000 units to 12,000 units. When it produces…
A: Lets understand the basics. Product cost is a cost which is incurred to manufacture product. This…
Q: Pedregon Corporation has provided the following information: Cost per Period Cost per Unit $ 6.55 $…
A: The contribution margin is calculated as difference between sales and variable cost.
Q: In the previous year, a company’s total fixed manufacturing overhead costs were P13,600 and its…
A: Lower in operating income using variable costing versus absorption costing = Increase in ending…
Q: Under absorption costing, a company had the following per unit costs when 5,000 units were produced.…
A: Product cost includes all the costs undertaken on the product till the time it gets ready for sale.…
Q: otterel Corporation uses the variable cost concept of product pricing. Below is the cost information…
A: Profit refers to the income of the owner which is earned by the market production process. It a form…
Q: A company had income of P50,000 using variable costing for a given period. Beginning and ending…
A: Solution: Income using variable costing = P50,000 Fixed overhead per unit = P2 per unit Beginning…
Q: Mallard Corporation uses the product cost concept of product pricing. Below is cost information for…
A: Fixed factory overhead cost per unit = $82,000 / 45,000 units = $1.82 per unit.
Q: Morwenna, Inc. reports the following information for August: Sales Revenue $700,000…
A: The operating income is determined by subtracting all regularly occurring expenses required for…
Q: BNM INC. presented the following data for 2021: Sales ₱256,000 Variable manufacturing costs 96,000…
A: Sales ₱256,000 Variable manufacturing costs 96,000
Q: Mallard Corporation uses the product cost method of product pricing. Below is cost information for…
A:
A. P178,000
B. P193,000
C. P200,000
D. P207,000
E. Answer not given
Step by step
Solved in 2 steps
- Submarine Company produces only one product and sells that product for $150 per unit. Cost information for the product is as follows: Selling expenses are $2 per unit and are all variable. Administrative expenses of $15,000 are all fixed, Submarine produced 2.000 units and sold 1.800. Grainger had no beginning inventory. A. Compute net income under absorption costing variable costing B. Reconcile the difference between the income under absorption and variable costing.Panta Corp had net income of P226,000 based on variable costing. Beginning and ending inventories were 7,400 units and 12,800 units, respectively. Assume the fixed overhead per unit was P5 for both the beginning and ending inventory. What is net income under absorption costing?Gibson Manufacturing Company makes a product that sells for $74.60 per unit. Manufacturing costs for the product amount to $25.10 per unit variable, and $65,100 fixed. During the current accounting period, Gibson made 3,100 units of the product and sold 2,600 units. Selling and administrative expenses were zero. Required a. Prepare an absorption costing income statement. b. Prepare a variable costing income statement.
- Wonder Woman Company produced 10,000 units and sold 9,000 units. Fixed manufacturing overhead costs were P20,000, and variable manufacturing overhead costs were P3 per unit. Which of the following best describes the net income under the absorption costing method? Select one: a. P5,000 less than the net income under the variable costing method b. P5,000 more than the net income under the variable costing method c. P2,000 more than the net income under the variable costing method d. P2,000 less than the net income under the variable costing methodNUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending inventories for the period are 12,000 units and 18,000 units respectively. Ignoring income taxes, if the fixed overhead application rate is P2.50 per unit, what would the income have been using variable costing? A.P77,500 B. P60,000 C. P52,500 D. P50,000NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending inventories for the period are 12,000 units and 18,000 units respectively. Ignoring income taxes, if the fixed overhead application rate is P2.50 per unit, what would the income have been using variable costing?
- A company had income of P50,000 using variable costing for a given period. Beginning and ending inventories for that period were 13,000 units and 18,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate were P2.00 per unit, what would the income have been using absorption costing?Ming Company had income of $771,200 based on variable costing. Beginning and ending finished goods inventories were 7,700 units and 5,100 units, respectively. Assume the fixed overhead per unit was $2.90 for both the beginning and ending finished goods inventory. What is income under absorption costing? (Amounts to be deducted should be indicated with a minus sign.) Variable costing income Fixed overhead in beginning FG inventory Fixed overhead in ending FG inventory Absorption costing incomeZeta Inc. had net income of $918,000 based on variable costing. Beginning and ending inventories were 56,800 units and 55,600 units, respectively. Assume the fixed overhead per unit was $2.15 for both the beginning and ending inventory. What is net income under absorption costing? A.$797,170 B.$912,840 C.$1,038,830 D.$915,420 E.$918,000
- Solomon Manufacturing Company makes a product that sells for $75.30 per unit. Manufacturing costs for the product amount to $26.90 per unit variable, and $66,000 fixed. During the current accounting period, Solomon made 3,300 units of the product and sold 2,500 units. Selling and administrative expenses were zero. Required a. Prepare an absorption costing Income statement. b. Prepare a variable costing Income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an absorption costing income statement. Note: Do not round intermediate calculations. SOLOMON MANUFACTURING COMPANY Absorption Costing Income StatementThe cost per unit associated with the production of Xen Merchandising are the following: Direct Materials - P1,000; Direct Wages - P200; Variable Overhead - P1,500; and Fixed Overhead - P2,000. Given the data, what is the marginal cost?Razor Ltd had net income of 918,000 based on variable costing. Beginning and ending inventories were 56,800 units and 55,600 units, respectively. Assume the fixed overhead per unit was 2.15 for both the beginning and ending inventory. What will be the net income under absorption costing?