do not give solution in image Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow.Income Statements (Absorption Costing)Sales ($63 per unit)Cost of goods sold ($51 per unit)Year 2$ 4,284,0003,468,000816,000394,000Gross profitSelling and administrative expensesIncome$ 422,000Additional Informationa. Sales and production data for these first two years follow.UnitsUnits producedUnits soldYear 1Direct materials:Direct labori52,00036,000Year 252,00068,000Year 1$ 2,268,0001,836,000432,000298,000$ 134,000b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $51 per unit product cost usingabsorption costing consists of the following.Variable overheadFixed overhead ($520,000/52,000 units)Total product cost per unit$ 1522410$ 51 c. Selling and administrative expenses consist of the following.Selling and Administrative ExpensesVariable selling and administrative ($3 per unit sold)Fixed selling and administrativeTotalSDOWELL CompanyIncome Statements (Variable Costing)ĊYear 1Required:Prepare Income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.)Year 1$ 108,000190,000$ 298,000Year 2Year 2$ 204,000190,000$ 394,000

Variable costing or direct costing method is used for internal decision making. It uses the…

Answered: c. Selling and administrative expenses…

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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QUESTION A. What is the net income for 2020 under the Variable Costing Method? B. What is the net income for 2020 under the Absorption Costing Method? C. What is the net income for 2021 under the Variable Costing Method? D. What is the net income for 2021 under the Absorption Costing Method?
In the cost-volume- profit graph (above), what is represented by the point marked "A"? Question 1 options: Breakeven point Fixed expenses Operating income area Operating loss area
Question 1: Pamlico Manufacturing Ltd has the following information given in the table below. 12.50 Sales per unit Variable production cost per unit Variable administration sales and distribution per 7.50 1.00 unit Fixed production costs 37 500 18 750 Fixed administration sales and distribution Opening inventory in units Units produced 2 500 25 000 At the beginning of December 2018, there were 2 500 units in inventory. Required: Draw up a staement of comprehensiy income according to margial costing principlesor three differenevels of sales, for the moth of December 12 500 units b) 18 750 units c) 25 000 units Question 2 Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensive income using absorption costing principles for the month of December and assume the following: 1. Normal level of activity is 25 000 shirts per month. 2. Fixed production costs were 37 500 for the month.
Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Vanities Total Units 1,000 500 500 2,000 Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Break-even point in unit sales: Percentage sex 25% 25% 100% Break-even point in sales dollars: Total Fixed expenses. Weighted-average CM per unit Sinks 48% Product Mirrors 20% $264,000 100.00% $110,000 100.00% $176,000 100.00% $550,000 100.00% 80,000 30.30% 72,000 65.45% 82,000 46.59% 219,300 39.87% 53.41% 60.13% $184,000 $ 94,000 330,700 69.70% 38,000 34.55% S 76.00 $ 184.00 $ 188.00 Fixed expenses Overall CM ratio $293,300 $158.00 Vanities 32% $293,300 0.60 1,856.33 units Total 100% 293,300 $ 37,400 = $487,798.61 *($184.00 0.50) + ($76.00 x…
In the cost-volume- profit graph (above), what is represented by the point marked "D"? Question 3 options: Operating loss area Operating income area Breakeven point Fixed expenses
D1.
The following information is available for Bramble Corp.: Sales Cost of goods sold $520000 0 0 0 0 300000 Total fixed expenses A CVP income statement would report contribution gross profit of $220000. contribution gross profit of $260000. Total variable expenses margin of $260000. margin of $370000. $150000 260000
II. George Corporation has the following information for the current year: Selling price per unit Variable costs per unit Fixed costs Required: Prepare a cost-volume-profit graph identifying the following items: Total fixed costs line Total variable costs line Total costs line Total revenues line Breakeven point in sales dollars Breakeven point in units A. B. C. D. E. F. G. H. Dollars (S) Profit area Loss area 6,000 5,000 4,000 3,000 2,000 1,000 S 10.00 6.00 S $1,000.00 0 100 200 300 400 Qty (# Units) 500
I NEED HELP WITH QUESTIONS 2 AND 3
Subject: acounting
Blossom Company has the following information available for September 2022. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $400 $320 $24,000 600
Compute for the net operating income under variable costing for year 1 Puif Company's absorption costing income statements for the last two years are presented below: Year 1 Year 2 Sales $70,000 $90,000 Less cost of goods sold: Beginning inventory Add cost of goods manufactured 6,000 48,000 48,000 Goods available for sale 48,000 54,000 Less ending inventory | Cost of goods sold Gross margin Less selling & admin. expenses 6,000 42,000 54,000 28,000 36,000 25,000 31,000 |Net operating income $ 3,000 $ 5,000 Data on units produced and sold in each of these years are given below: Year 1 Year 2 Units in beginning inventory Units produced Units sold 1,000 8,000 8,000 7,000 9,000 Fixed factory overhead totaled $16,000 in each year. This overhead was applied to products at a rate of $2 per unit. Variable selling and administrative expenses were $3 per unit sold.

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