CABADBARAN CORP., produces non-fat yogurt which it sells to restaurants and ice cream shops. Theproduct is sold in 10-gallon containers, which have the following price and variable costs.Sales priceDirect materialsDirect laborVariable overheadBudgeted fixed overhead in 2019, the company's first year of operations, was P600,000. Actualproduction was 150,000 10-gallon containers, of which 125,000 were sold. CABADBARAN incurred thefollowing selling and administrative expenses.FixedVariableREQUIREMENTS:(a) Compute the unit product cost per container of frozen yogurt under variable costing andabsorption costing, respectively.(b)2.P30104P100,000 for the yearP2 per container soldPrepare the operating income statements for 2019 using absorption costing and variable costing.Reconcile the operating income reported under the two methods.(c)(d)Compute the throughput margin and income under throughput costing.

"Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

CABADBARAN CORP., produces non-fat yogurt which it sells to restaurants and ice cream shops. The product is sold in 10-gallon containers, which have the following price and variable costs. Sales price P30 10 Direct materials Direct labor Variable overhead Budgeted fixed overhead in 2019, the company's first year of operations, was P600,000. Actual procuction was 150,000 10-gallon containers, of which 125,000 were sold. CABADBARAN incurred the following selling and acministrative expenses. Fixed Variable REQUIREMENTS: (a) Compute the unit product cost per container of frozen yogurt under variable costing and absorption costing, respectively. (b) Prepare the operating income statements for 2019 using absorption costing and variable costing. (c) Reconcile the operating income reported under the two methods. 4 P100,000 for the year P2 per container sold 2.

CABADBARAN CORP., produces non-fat yogurt which it sells to restaurants and ice cream shops. The product is sold in 10-gallon containers, which have the following price and variable costs. Sales price P30 10 Direct materials Direct labor Variable overhead Budgeted fixed overhead in 2019, the company's first year of operations, was P600,000. Actual procuction was 150,000 10-gallon containers, of which 125,000 were sold. CABADBARAN incurred the following selling and acministrative expenses. Fixed Variable REQUIREMENTS: (a) Compute the unit product cost per container of frozen yogurt under variable costing and absorption costing, respectively. (b) Prepare the operating income statements for 2019 using absorption costing and variable costing. (c) Reconcile the operating income reported under the two methods. 4 P100,000 for the year P2 per container sold 2.

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

Nore Milling Co. has a plant capacity of 40,000 units per month. Unit cost capacity are: Direct materials Direct labor Variable overhead Fixed overhead Marketing fixed cost Marketing variable cost P100 150 75 75 175 90 Present monthly sales are 39,000 units at P630 each. Josh Corporation contacted Nore about purchasing 1,000 units at P600 each. The present sales would not be affected by the special order. Nore should Accept the special order due to P215,000 incremental income Accept the special order due to P110,000 incremental income Accept the special order due to P185,000 incremental income Accept the special order due to P10,000 incremental income
Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) Production Costs: 4,000 6,000 Direct Materials. $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials.. 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries . Office Salaries 50,000 65,000 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20.000 Total $365.000 $477.500
Lakeside Bakery makes pies. Each pie requires 1/2 of a direct labor hour. The variable overhead rate is S0.50 per direct labor hour. Lakeside's estimated fixed overhead is $425,000. Lakeside budgets pie production at 600,000 pies for the upcoming year. What is Lakeside's total estimated overhead? $625,000 $420,000 $635,000 $425,000 O $845,000
Windmire Company manufactures and sells to local wholesalers approximately 300,000 units per month at a sales price of $4 per unit. Monthly costs for the production and sale of this quantity follow. Direct materials $384,000 Direct labor 96,000 Overhead . 288,000 Selling expenses 120,000 Administrative expenses . 80,000 Total costs and expenses $968,000 A new out-of-state distributor has offered to buy 50,000 units next month for $3.44 each. These units would be marketed in other states and would not affect Windmire’s sales through its normal channels. A study of the costs of this new business reveals the following: ∙ Direct materials costs are 100% variable. ∙ Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 1½ times their normal rate to meet the distributor’s deadline. ∙ Twenty-five percent of normal annual overhead costs are fixed at any production level from 250,000 to 400,000 units. The…
nick limited sells creme, a cream suitable for variety of first aid uses. The company commenced operations earlier this year and expects to sell 100,000 tubes of Super crème. The following Information is available: Selling price per tube 7.00Direct material cost per tube 2.10 Direct labour cost per tube 1.35Variable overhead cost per tube 0.75Total fixed costs for the year. 210,000RequiredWhat is the Break-even point (BEP) in tubes and sales revenue? 4) If the company wanted to earn a profit of UGX 46,200 for the year how many tubes of Super crème must be sold? By what percentage should expected sales revenue fall before NICK Limited starts to make a loss? State the assumptions and limitations of break-even analysis
Brightstone Tire and Rubber Company has capacity to produce 153,000 tires. Brightstone presently produces and sells 117,000 tires for the North American market at a price of $91 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 18,000 tires for $75.15 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $35 Direct labor 13 Factory overhead (60% variable) 21 Selling and administrative expenses (40% variable) 18 Total $87 Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $5 per tire. In addition, Euro has made the order conditional on receiving European safety…
Haresh
Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 19,000 units at a price of $340 each. Product costs include: Direct materials $71.00 Direct labor $41.00 Variable overhead $10.00 Total fixed factory overhead $584,800 Variable selling expense is a commission of 4 percent of price; fixed selling and administrative expenses total $98,600.
Miami Solar...
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.60 Variable overhead 0.80 Fixed overhead 1.90 Total unit cost $4.95 For the coming year, Play-Disc expects to make 330,000 plastic discs, and to sell 311,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of $4.95. (There are no beginning or ending inventories of work in process.) Required: Question Content Area 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs: $- Select - - Select - Overhead: - Select - - Select - Total cost per unit $fill in the blank 04d2fcfb606b005_9 Total ending inventory cost $fill in the blank 04d2fcfb606b005_10 Question Content Area 2. What…
None
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.50 Variable overhead 0.75 Fixed overhead 1.90 Total unit cost $4.80 For the coming year, Play-Disc expects to make 380,000 plastic discs, and to sell 369,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $4.80. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs: Direct materials $______ Direct labor _____ Overhead: _____ Budgeted variable overhead ______ Budgeted fixed overhead ______ Total cost per unit $______ Total ending inventory cost $_____ 2. What if sales increased to 379,000 discs? How would that…