Boateng Plc is a company that produces and sells one product "Excellence". Informationrelating to the operations of George Plc for the first two months of 2023 are as follows:i)Excellence sells for GHC500 per unit.There were no inventories of Excellence at the end of December 2022.Other relevant information is as follows:Standard cost per unit of Excellence:Direct material and wagesVariable production overheadGHC22030Budgeted and actual costs per month:Fixed production overhead990,000Fixed selling and admin. expenses400,000Variable selling expenses12.5% of salesNormal capacity 110,000 units per monthNumber of units produced and sold:JanuaryFebruarySales (units)128,000110,000Production (units)140,000102,000Required:Using the information above, prepare in a columnar form profit statements for January andFebruary 2023 using:a) Marginal costingb) Absorption costing

The objective of the question is to prepare profit statements for January and February 2023 using…

Answered: Boateng Plc is a company that produces…

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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Maher Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 192 Units in beginning inventory 0 Units produced 3,660 Units sold 3,430 Units in ending inventory 230 Variable costs per unit: Direct materials $ 52 Direct labor $ 53 Variable manufacturing overhead $ 15 Variable selling and administrative expense $ 18 Fixed costs: Fixed manufacturing overhead $ 135,420 Fixed selling and administrative $ 13,720 Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? e. Reconcile the variable costing and absorption costing net operating incomes for the month. Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss)
Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials 4 Direct labor 5 Factory overhead $56.00 36.00 $194,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 110,000.00 8.00 8 Advertising 42,000.00 9 Travel 13,000.00 10 Miscellaneous selling expense 7,000.00 1.00 11 Administrative expenses: 12 Office and officers' salaries 13 Supplies 124,600.00 8,000.00 6.00
Cecilia.com Ltd commenced business on March 1 making one product only and the cost card is as follows; Direct labour 5 Direct material 8 Variable production overhead 2 Fixed production overhead 5 Standard production cost 20 The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 36,000 units per annum. The fixed production overhead incurred in March was GH¢15,000. Selling, distribution and administration expenses are: Fixed GH¢10,000 Variable 15% of the sales value The selling price per unit is GH¢35and the number of units produced and sold were; Production 2,000 Sales…
S Conner's Fixtures produces and sells a single product, a specialized plumbing fixture. The business began operations on January 1 this year and its costs incurred during the year include the following: Variable costs (based on units produced): Direct materials cost Direct manufacturing labor costs Indirect manufacturing costs Administration and marketing Fixed costs: Administration and marketing costs Indirect manufacturing costs $ 24,000 108,000 21,600 13,500 72,000 24,000 At the end of the first year (December 31), direct materials inventory consisted of 7,500 pounds of material. Production in that year was 10,000 fixtures. All prices and unit variable costs remained constant during the year. Sales revenue for year 1 was $293,250. Finished goods inventory was $24.420 on December 31. Each finished fixture requires 3.20 pounds of material. Required: a. Compute the direct materials inventory cost, December 31. b. Compute the finished goods ending inventory in units (fixtures) on…
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During 2022, Sheridan Corp. produced 38,000 units and sold 38,000 for $14 per unit. Variable manufacturing costs were $4 per unit. Annual fixed manufacturing overhead was $76,000 ($2 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $18,000. Prepare a variable-costing income statement. Sales Less Variable cost of goods sold SheridanCorp. Income Statement-Variable Costing For the Month Ended December 31, 2022 LA tA 76000
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Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory $ 111 0 7,500 7,200 300 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the net operating income for the month under absorption costing? $24 $ 34 $ 1 $5 $217,500 $115, 200
Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 174 Units in beginning inventory 0 Units produced 3,770 Units sold 3,450 Units in ending inventory 320 Variable costs per unit: Direct materials $ 47 Direct labor $ 57 Variable manufacturing overhead $ 16 Variable selling and administrative $ 11 Fixed costs: Fixed manufacturing overhead $ 113,100 Fixed selling and administrative $ 13,800 Required: a. What is the unit product cost for the month under variable costing? (Do not round intermediate calculations.) b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using variable costing. d. Prepare…
Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 30 per unit Direct labor $ 50 per unit Variable overhead $ 20 per unit Fixed overhead $ 8,400,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,750,000 per year Units produced 105,000 units Units sold 75,000 units Sales price $ 360 per unit 1. Prepare an income statement for the year using variable costing.2. Prepare an income statement for the year using absorption costing.

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