Brush Industries reports the following information for May: Sales $940,000 Fixed cost of goods sold Variable cost of goods sold 108,000 258,000 Fixed selling and administrative costs 108,000 Variable selling and administrative costs 133,000 Calculate the operating income for May under absorption costing. Multiple Choice $549,000 $333,000 $366,000 $682,000

Brush Industries reports the following information for May: Sales $940,000 Fixed cost of goods sold Variable cost of goods sold 108,000 258,000 Fixed selling and administrative costs 108,000 Variable selling and administrative costs 133,000 Calculate the operating income for May under absorption costing. Multiple Choice $549,000 $333,000 $366,000 $682,000

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

Melanio Company produces a merchandise that has the following data: Unit Sales Price P80 per unit P48 per unit P640,000 per annum 25,000 units Unit Variable Costs Total Fixed Costs Units sold during the current year
Lindquist Company has the following information for February: Line Item Description Amount Sales $370,000 Variable cost of goods sold 173,900 Fixed manufacturing costs 55,500 Variable selling and administrative expenses 40,700 Fixed selling and administrative expenses 22,200 Determine the following for Lindquist Company for the month of February: Line Item Description Amount a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income $fill in the blank 3
The MER-92566 merchandising company reported the following information for last year: Amount $. 1,312,000 $ 410 $ 46 $ 18 $ 150,000 $ 105,000 $ 75,000 $ 115,000 $310,000 Sales Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases The MER-92566 company's contribution margin per unit is closest to: (Carry out your calculations up to 2 decimal places) O $392 O $346 O $262 O $364
Contribution Margin Analysis—Sales The following data for Romero Products Inc. are available: For the Year Ended December 31 Actual Planned Difference—Increase or (Decrease) Sales $1,958,400 $1,764,000 $194,400 Variable costs: Variable cost of goods sold $1,040,400 $940,800 $99,600 Variable selling and administrative expenses 204,000 196,000 8,000 Total variable costs $1,244,400 $1,136,800 $107,600 Contribution margin $714,000 $627,200 $86,800 Number of units sold 20,400 19,600 Per unit: Sales price $96 $90 Variable cost of goods sold 51 48 Variable selling and administrative expenses 10 10 Prepare an analysis of the sales quantity and unit price factors. Romero Products Inc. Contribution Margin Analysis—Sales For the Year Ended December 31 Effect of changes in sales: Sales quantity factor $ Unit price factor Total effect of changes in sales $
Information about the Harmonious Company's two products includes: Unit selling price Unit variable costs: Manufacturing Selling Total Product X $11.25 Product y $11.25 $5.25 -75 $6.00 $6.75 -75 $7.50 Monthly fixed costs are as follows: Manufacturing Selling and administrative Total $82,500 45,000 $127.500 1. What is the total monthly sales volume in units required to break even when the sales mix in units is 70 percent Product X and 30 percent Product Y? 2. If the sales mix in units is 50 percent Product X and 50 percent Product Y, the monthly break-even total sales dollars is The following data pertain to the three products produced by Beta Corporation: A B C Selling price per unit $6.00 $8.00 $9.00 Variable costs per unit 4.00 Contribution margin per unit $2.00 4.00 $4.00 4.00 $5.00 Fixed costs are $77,000 per month. Twenty percent of all units sold are Product A, fifty-five percent are Product B, and twenty-five percent are Product C. What is the monthly break-even point for total…
Compute for the net operating income under variable costing for year 2
Which of the following statements is not incorrect?
XYZ, Inc. reports the following information for November: Sales Revenue $800,000 Variable Cost of Goods Sold 110,000 Fixed Cost of Goods Sold 45,000 Variable Selling and Administrative Costs 100,000 Fixed Selling and Administrative Costs 70,000 Calculate the gross profit for November using absorption (traditional) costing. Question 18Select one: A. $ 730,000 B. $690,000 C. $700,000 D. $645,000
Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (18,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Multiple Choice O $6,000 profit. Per Unit $ 12.00 $4,000 loss. 1.50 4.00 1.00 5.50 1.00 1.40 $ 3.10 A foreign company offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 28,000 units. If Lattimer accepts this additional business, the special order will yield a: Annual Total $ 216,000 27,000 72,000 18,000 99,000 18,000 25, 200 $ 55,800
Norwood Company has the following information for July: Sales $440,000 Variable cost of goods sold 198,000 Fixed manufacturing costs 70,400 Variable selling and administrative expenses 44,000 Fixed selling and administrative expenses 26,400 Determine the following for Norwood Company for the month of July: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income $fill in the blank 3
Sales Cost of goods sold Gross profit Expenses: $186,000,000 (102,000,000) $84,000,000 Selling expenses $16,000,000 Administrative expenses 5,200,000 Total expenses (21,200,000) Operating income $62,800,000 The division of costs between variable and fixed is as follows: Cost of goods sold Selling expenses Administrative expenses Variable Fixed 70% 30% 75% 25% 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $11,160,000 in yearly sales. The expansion will increase fixed costs by $3,000,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs Total fixed costs 86,000,000 ✓ 37,700,000 X 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin 86 V ✓ 100 3. Compute the break-even sales (units) for the…
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Sales (862 per unit) Year 2 $930,000 $1,550,000 495,000 Cost of goods sold t# $33 per unit) Gross margin 625,000 435,000 725,000 Selling and adninistrative expenses 292.000 322,000 Set operating income $ 143,000 $ 403,000 *$3 per unit variable: $247,000 fixed each year. The company's $33 unit product cost is computed as follows: Dirpet materials Diret labor Variable manufacturing overhead 3 13 Fixed manufacturing overhead (5260,000 20,000 unita) Absorption costing unit product cost Production and cost data for the first two years of operations are Year 1 Year 2 Units produced 20,000 20,000 thits sold 15,000 25,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 27 3. Reconcile the absorption costing and the variable costing net operating income figures…