pricing as described in the text. ABC Company uses the absorption costing approach to cost-plus Fixed selling, general, and administrative costs ABC Company uses the absorption costing approach to cost-plus pricing as described in the text. 4) Assume that the company uses a markup of 80% in order to determine şelling prices. The selling price for Product Q using the absorption costing approach would be: a. P32.40 b. P45.00 P9 P180,000 C. P37.00 d. P66.60 5)Assume that the company has not yet determined a markup. Product Q requires an investment of P400,000. The company desires a 30% rate of return on investment. The markup for Product Q under the absorption costing approach to cost-plus pricing would be: a. 100.0% b. 76.0% C. 72.0% d. 80.0% nctina ABC Company makes a number'ðf products, including Product 0 The company produces and sells 20,000 units of Product O each year. The costs of Product Q at that activity level are: Per Unit Total Variable production costs Fixed production costs Variable selling, general, and administrative P15 P10 P200,000 costs P3

pricing as described in the text. ABC Company uses the absorption costing approach to cost-plus Fixed selling, general, and administrative costs ABC Company uses the absorption costing approach to cost-plus pricing as described in the text. 4) Assume that the company uses a markup of 80% in order to determine şelling prices. The selling price for Product Q using the absorption costing approach would be: a. P32.40 b. P45.00 P9 P180,000 C. P37.00 d. P66.60 5)Assume that the company has not yet determined a markup. Product Q requires an investment of P400,000. The company desires a 30% rate of return on investment. The markup for Product Q under the absorption costing approach to cost-plus pricing would be: a. 100.0% b. 76.0% C. 72.0% d. 80.0% nctina ABC Company makes a number'ðf products, including Product 0 The company produces and sells 20,000 units of Product O each year. The costs of Product Q at that activity level are: Per Unit Total Variable production costs Fixed production costs Variable selling, general, and administrative P15 P10 P200,000 costs P3

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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Answer questions 3 & 4 using the following information: Rebel Company manufactures a single product and has the following cost structure: Variable cost per unit Fixed Costs Production P5 Production P32,000 Selling & administrative 3 Selling & administrative 16,000 During the year, 8,000 units were produced, and 7,800 units were sold. 3. The carrying value of ending inventory under variable costing would be: present as is if higher or present it in comma if it is less ex: (200) Your answer 4. Under absorption costing, the cost of goods sold would be: Your answer
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Stuart Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin. General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) Complete this question by entering your answers in the tabs below. Required A Required B STUART COMPANY Income Statements for Year 2 Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Cost of goods sold Sales commissions Advertising expense Effect on income Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. $ $ 163,000 (128,000) (17,000) 0 B $242,000 $256,000 (78,000) (28,000) (86,000)…
The table represents the breakdown of cost structure, which is constructed based on the information of Zara case. What is the worst interpretation regarding the table below? Representative Competitor Zara Posted Selling Price 100.0 100.0 - Markdown -10.5 -2.6 Retail Selling Price (RSP) =89.5 =97.4 Manufacturing Cost -51.1 -44.8 Gross Margin =44.7 =46.3 - Advertising -3.1 -0.3 Advertising-adjusted Margins =41.6 =46.3 (a) Zara has the lower markdown and advertising cost than its competitors because of its entry-timing decision (i.e., entering the market later until the demand uncertainty is substantially resolved). (b) Zara has higher manufacturing cost than its competitors because of its speed decision (i.e., shorter cycle from design to retail). (c) Zara realizes its cost leadership because the cost decreases in markdown and advertising are greater than the cost increases in manufacturing cost. (d) Zara realizes its cost leadership because of its speed decision, not because of its…
Complete the following table by filling in the missing amounts: See attached table
Prepare an Excel worksheet that illustrates cost-volume-profit (CVP) analysis, also referred to as breakeven analysis. Assume that a particular product sold at Astro Ltd a US toy company has a sales price per unit of $4.00; variable cost per unit of $2.20; and total fixed cost of $90,000. 1) Calculate the contribution margin per unit, the break-even point in units of sales, and the break-even point in dollars of sales. In the input area, show sales price per unit, variable cost per unit, and total fixed cost. In the output area, show contribution margin per unit, breakeven point in units, and breakeven point in dollars computed using appropriate formulas. 2) Assume that the planning team at Astro Ltd estimates that for the next planning period selling price for this product will increase 40%; variable expenses will decrease 25%; and that total fixed cost will decrease 25%. Compute the new values for sales price per unit, variable cost per…
Tariq Company is a multiproduct firm. Presented below is information concerning one of its products, the Jayhawk Date Transaction Quantity Unit Cost 1/1 Beginning inventory 1,100 OMR12 2/4 Purchase 2,200 18 2/20 Sale 2,800 30 4/2 Purchase 3,100 23 11/4 Sale 2,300 33 Instructions: Compute cost of goods sold, assuming Tariq uses periodic system, FIFO cost flow.
Que. No. 1a. When production is greater than sales which method’s net operating income will be higher, AC or VC and why? Be precise and to the point in writing the answer. Que. No. 1b. Sharp Company manufactures a product for which the following data and information related to inventory is available. The company uses variable costing for internal management reports and absorption costing for external reports to the shareholders, creditors, and the government. The company has provided the following data:Year-1Year-2Year-3Inventories:Beginning (units)200160180Ending (units)160180220Variable Costing net operating income$1,080,400$1,032,400$996,400The company’s fixed manufacturing overhead per unit was constant at $650 for all the three years.Required: 1. Determine each year’s absorption costing net operating income. Present your answer in the form of a reconciliation report. (you must show all calculations)2. In year four, the company’s variable costing net operating income was $984,400…
What is the right answer in the options?
a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Sales Absorption Costing Income Statement Cost of Goods Sold: $ 100,000 Beginning Inventory Direct labor 47,000 ✔ Manufacturing overhead いく 21,000✓ Less: Ending Inventory Cost of Goods Sold Gross profit 0 x 80,000 * Operating expenses ÷ Net Income (Loss) $ 32,000 x 11,400 x