c) Without preparing an income statement, determine the absorption costing net operatingincome for the month. (Hint: Use the reconciliation method)d) Explain how fixed manufacturing overhead cost is shifted from one period to anotherusing absorption costing system. Q1. Zingling Inc produces only product and following information relates to the recent month ofoperation:Selling price|Units in inventoryUnits producedUnits soldUnits in inventory$121000 units4300 units4000 units300 unitsVariable cost per unit:Direct Materials| Direct LaborVariable manufacturing overheadVariable selling and administrative$44$35$7$5Fixed costs:Fixed manufacturing overheadFixed selling and administrative$34400$72000

The income statement is prepared find the net income or loss incurred during the period.

Answered: c) Without preparing an income…

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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Use the information to prepare a schedule of cost of goods manufactured and an income statement. Assume no indirect materials are used and all amounts are shown in millions.
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Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing, Incorporated Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,800 units of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials Direct labor Manufacturing overhead Cost of goods sold $ 1,767,600 1,212,922 554,678 610,000 $ (55,322) 8300 T500 $ 400,300 $ 162,400 $ 120,100. $ 42,400 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other…
Which of the following statements is incorrect? O A. If MOH is overallocated to a job that has been sold, and the company calculates sales price by marking up job costs, the job will likely be underpriced. O B. The formula to arrive at the POHR is total budgeted manufacturing overhead divided by total estimated allocation base. O C. To calculate the increase to WIP for allocated MOH costs, the POHR is multiplied by the actual amount of the allocation based used by the cost object. D. "Number of units" is typically not an appropriate allocation base for MOH because the company's products do not consume equal overhead resources. If the over/underallocated MOH is fairly large and the majority of the units have not been sold, the balance in MOH should be prorated between WIP, FG, and COGS. O E.
Management Accounting Questions MCQ 1. Which of the following statements comparing the weighted-average method with the FIFO method of accounting for cost flows is incorrect? a)Using the FIFO method, the equivalent units are calculated differently from the weighted-average method because the equivalent work done on the opening work-in-progress last period is excluded from the computation. b)The weighted-average method averages the costs associated with the work done in the previous period with the costs incurred in the current period. c)The fact that there are two different methods suggests that it is not possible to state which method provides more accurate results. d) When there are no beginning inventories or ending inventories, both methods will provide identical results. 2. Which of the following statements about a process costing system is incorrect? a) In a process costing system, there is a work-in-progress account for each processing department. b) In a process costing…
(b) Merry Company produces clothes. One of the company's products is KIKILULU Skirts which are sold for RM90 each. The standard cost of producing 100 units of KIKILULU skirt is shown below: RM Direct labour 500 Direct material 2,000 Variable production overhead 1,200 Fixed production overhead 1,800 ТОTAL 5,500 Production and inventory data during the month of October 2021 is given below: Units Unit production 5000 Opening inventory 10,000 Closing inventory 8,000 • The company's normal production is 120,000 units per annum. • Fixed production overhead cost spread evenly over the year. • The fixed selling and distribution cost per year is RM78,000. Variable selling and distribution cost is RM5.00 per unit.
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Need some help making a cheet sheet for an up coming test. please provide examples. The exam covers chapters 1 through 13. Here are some suggested study topics: Cost Classifications - variable, fixed and mixed, period and product, direct and indirect, opportunity, sunk, relevant, traceable, common, etc. Calculate the results of changes to cost assumptions (CVP) Calculate net income based on contribution margin values either dollars or % Application of Manufacturing Overhead - calculate predetermined overhead rate or activity rates applied to a product or job - job order using a predetermined overhead rate or rates and activity-based costing calculate over and underapplied overhead calculate adjusted cost of goods sold Job Costing What is the total cost of the job and average cost per unit. Cost of Goods Manufactured and cost of goods sold Calculate break even and target profit Create a contribution format income statement Gross margin calculations absorption or variable costing…
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When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overheadgenerally done? A. Before the period startsB. NeverC. During the periodD. At the end of the period...

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c) Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method) d) Explain how fixed manufacturing overhead cost is shifted from one period to another using absorption costing system.