Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory Units Produced 26,000 Units Sold 20,800 Selling Price per Unit $145 Variable Sales and Administration Expenses $4 Fixed Sales and Administration Expenses $1,008,800 Direct Material Cost per Unit $26 Direct Labor Cost per Unit $10 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $1,016,600 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Absorption Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable Fixed Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Variable Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable

Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory Units Produced 26,000 Units Sold 20,800 Selling Price per Unit $145 Variable Sales and Administration Expenses $4 Fixed Sales and Administration Expenses $1,008,800 Direct Material Cost per Unit $26 Direct Labor Cost per Unit $10 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $1,016,600 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Absorption Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable Fixed Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Variable Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable

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

Tiara Corporation manufactures and sells scarfs. Price and cost data for the company are provided below:Selling price per unit$50Variable costs per unitManufacturing costsDirect material15Direct labour8Variable manufacturing overhead12Variable selling and administrative costs3Annual fixed costsFixed manufacturing overhead$2,640,000Fixed selling and administrative costs$1,560,000Forecasted annual sales (units)500,000Required:(a)What is Tiara Corporation’s break-even point in dollars? (b)How many units would Tiara Corporation have to sell in order to earn a before tax profit of $480,000? (c)What is the company’s margin of safety (in dollars)?(d)If the company’s direct material costs increase by 20 percent and the fixed selling and administrative costs decrease by 20 percent, how many units will the company have to sell next year to reach its break-even point
Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $55 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 38% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Line Item Description Amount Direct materials $28.00 Direct labor 16.00 Factory overhead (38% of direct labor) 6.08 Total cost per unit $50.08 If Pizana Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs. Question Content Area a. Prepare a differential analysis dated May 31 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. Round your answers to two decimal places. If an amount is zero, enter "0". Differential…
Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the company's normal volume of 6,000 units per month are shown in the following table. Unit manufacturing costs Variable materials Variable labor Variable overhead Fixed overhead Total unit manufacturing costs Unit marketing costs Variable Fixed Total unit marketing costs Total unit costs. $ 41 66 16 51 16 61 $ 174 77 $ 251 Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of $408 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself. Required: a. Market research estimates that volume could be increased to 7,000 units, which is well within production capacity limitations if the price were cut from $408 to $363 per unit. Assuming that the cost behavior patterns implied by the data in the…
Each year, Giada Company produces 20,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.39. The unit cost is: Direct materials $0.83 Direct labor 0.34 Variable overhead 0.13 Fixed overhead 2.55 Total unit cost $3.85 1. What are the alternatives for Giada Company? a. Make the part in house b.Buy the part externally c.Make the part in house or buy the part externally d.None 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. a.Direct materials, direct labor and variable and fixed overhead b.Direct materials, direct labor and variable overhead c.Direct materials, direct labor and fixed overhead d.None List the relevant cost(s) of external purchase. a.Purchase price b.Sales price c.Material price d.None 3. Which alternative is more cost effective and by how much? a. Making the part in house b. Buying the part from the external supplier by $___________ 4. What if…
Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 44% of direct labor cost. The total unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $28.00 Direct labor 17.00 Factory overhead (44% of direct labor) 7.48 Total cost per unit $52.48 If Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs. a. Prepare a differential analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Buy Carrying Case (Alternative 2). If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you…
Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 87 per unit Factory overhead $349,300 Direct labor 40 Selling and admin. exp. 122,700 Factory overhead 26 Selling and admin. exp. 21
Visno
MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 10,000 units of M3100, 17,500 units of M4100, and 10,000 units of M6100 and had the following revenues and costs: MTI Income Statement M3100 M4 100 M6100 Total Sales revenue. Direct costs Direct materials .. Direct labor $9,000,000 $15,000,000 $13,500,000 $37,500,000 3,000,000 600,000 4,500,000 900,000 3,300,000 10,800,000 1,800,000 3,300,000 Variable overhead Setting up machines. Processing sales orders... Warehousing ..... Operating machines Shipping .. Contribution margin. Plant administration 2,400,000 1,800,000 2,400,000 1,200,000 900,000 $14,700,000 Gross profit..... 6,000,000 $ 8,700,000 MTI's controller has heard about activity-based costing and puts together an employee team to recommend cost allocation bases. The employee team recommends the following: Activity Cost Driver M3100 M4100 M6100 Setting up machines....…
Flash E Card Manufacturing manufactures software parts for the computer software systems that produce e -cards. The Flash II part is currently manufactured in the Computer Department. The Data Department also produces the part and the plant has excess capacity to produce the Flash ll part. The current market price of the Flash Il part is $500. The managerial accountant reported the following manufacturing costs and variable expense data: Flash E-Card Manufacturing Manufacturing Costs and Variable Expense Report Flash Component Direct materials $800 $170 Direct labor $110 Variable manufacturing overhead Fixed manufacturing overhead (current production level) Variable selling expenses (only incurred on sales to outside consumers) $125 $140 If the highest acceptable transfer price is $500 in the market, what is the lowest acceptable in house price the Data Department should receive to produce the part in house at the Computer Department? O A. $1,080 О В. $800 О С. $170 O D. $110
Vikram bhai