General Account Question Alpha Company has provided projected information as follows:Net sales$ 10,000Fixed manufacturing costs$ 1,000Additionally, Alpha has experienced variable manufacturing costs of45% of net sales and sees no changes during the budget period. Alphaexpects that there will be no changes to any inventory values.Use this information to determine Alpha's:1. Budgeted Cost of Goods Sold.2. Budgeted Gross Profit.

Explanation for 1: The cost of goods sold is calculated as = Cost of goods manufactured + Beginning…

Answered: Alpha Company has provided projected…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1PA: When prices are rising (inflation), which costing method would produce the highest value for gross...

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Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?
When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Alpha company has provided projected solve this question
KALIBO CORP. prepared the following absorption-costing income statement for the year ended May 31, 2019 Sales (16,000 units) Cost of goods sold Gross margin Selling and administrative expenses Operating income Additional information follows: Selling and administrative expenses include P1.50 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were P11 per unit. Actual fixed costs were equal to budgeted fixed costs. REQUIREMENT: Prepare a variable-costing income statement for the same period. P 320,000 216.000 P104,000 46.000 P 58,000 Absorption Costing Income Statement (Conversion from Variable Net Income) 4. LEGAZPI COMPANY manufactures and sells premium tomato juice by the gallon. LEGAZPI just finished its first year of operations. The following data relates to this first year:
The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,228 Sales salaries $35,000 Advertising 10,086 Depreciation 7,200 Travel 8,355 Insurance 1,900 Delivery 3,422 (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,100. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, Depreciation on delivery equipment $7,200, and insurance on delivery equipment $1,900. (List variable costs before fixed costs.)
The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $10,994 Sales salaries $35,400 Advertising 10,304 Depreciation 7,100 Travel 8,470 Insurance 1,300 Delivery 3,498 (a) Prepare a flexible budget performance report for March, assuming that March sales were $169,400. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,400, Depreciation on delivery equipment $7,100, and insurance on delivery equipment $1,300. (List variable costs before fixed costs.) (b)Prepare a flexible budget performance report, assuming that March sales were $176,700. (List variable costs before fixed costs.)
The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $11,180 Sales salaries $35,500 Advertising 10,530 Depreciation 7,400 Travel 6,920 Insurance 1,100 Delivery 3,580 (a) Prepare a flexible budget performance report for March, assuming that March sales were $173,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,500, Depreciation on delivery equipment $7,400, and insurance on delivery equipment $1,100. (List variable costs before fixed costs.) FALLON COMPANYSelling Expense Flexible Budget ReportFor the Month Ended March 31, 2020 Difference Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Select an opening flexible budget report item…
Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.
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Ayayai Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2022, are shown here. Budget Differencefrom Budget Sales $2,490,000 $45,000 Favorable Cost of goods sold Variable 1,290,000 36,000 Favorable Controllable fixed 190,000 2,000 Unfavorable Selling and administrative Variable 210,000 6,000 Unfavorable Controllable fixed 45,000 1,000 Unfavorable Noncontrollable fixed costs 65,000 3,000 Unfavorable In addition, Ayayai incurs $175,000 of indirect fixed costs that were budgeted at $170,000. Twenty percent (20%) of these costs are allocated to the Patio Furniture Division.Prepare a responsibility report for the Patio Furniture Division for the year. (List variable costs before fixed costs.)
Victoria Company reports the following operating results for the month of April. VICTORIA COMPANYCVP Income StatementFor the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $450,000 $50 Variable costs 270,000 30.00 Contribution margin 180,000 $20.00 Fixed expenses 150,000 Net income $30,000 Management is considering the following course of action to increase net income: Reduce the selling price by 4%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%.Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.)(a) Assuming no changes to selling price or costs. Break-even point ? units Break-even point $ ? Margin of safety $ ? (b1)…
Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Sales (10,000 units) Variable costs Contribution margin Fixed expenses Net income $500,000 250,000 250,000 189,900 $60,100 Per Unit $50 25.00 $25.00 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round

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