Determine the absorption costing operating income for 2018 Carry Manufacturing Inc. had a variable costingoperating income of $95,200 in 2018. Endinginventory decreased during 2018 from 50,000units to 47,000 units. During both 2017 and2018, fixed manufacturing overhead was$900,000, and 120,000 units were produced.Determine the absorption costing operatingincome for 2018.

Explanation of Absorption Costing:Absorption costing is a costing method that includes all…

Answered: Carry Manufacturing Inc. had a variable…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 4P

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The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that 8,500 million of cost of goods sold and 4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Also, assume that 30% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. Round numbers to nearest million.
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
During 2020, Rafael Corp. produced 48,700 units and sold 34,090 for $14 per unit. Variable manufacturing costs were $7 per unit. Annual fixed manufacturing overhead was $102,270 ($3 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $19,200. Prepare an absorption-costing income statement. Rafael Corp. Income Statement-Absorption Costing Reconcile the difference between the net income under variable costing and the net income under absorption costing. That is, show a calculation that explains what causes the difference in net income between the two approaches. Variable costing net income Fixed manufacturing overhead costs deferred in ending inventory Absorption costing operating income $ $
How do I prepare an income statement based on full absorption costing?
How do I prepare an income statement based on variable costing?
Adelphi Company provides the following information for their first year of operations in 2018: Sales, 8,000 units @ $17 each Total production, 13,000 units Production costs per unit: Direct materials $ 4.00 Direct labor $ 3.00 Variable overhead $ 1.00 Fixed manufacturing overhead $ 9,000 Adelphi Company uses absorption costing. Use this information to determine for Adelphi Company the FY 2018 Cost of Goods Sold.
During 2019, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable manufacturing costs were $4 per unit. Annual fixed manufacturing overhead was $120,000 ($2 per unit). Variable selling and administrative costs were $1 per unit sold, and fixed selling and administrative costs were $30,000. Prepare a variable costing income statement. BASLER MANUFACTURING Income Statement (Variable Costing) $ $ 2:00 PM 11/2/2019
During 2019, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable manufacturing costs were $5 per unit. Annual fixed manufacturing overhead was $120,000 ($2 per unit). Variable selling and administrative costs were $1 per unit sold, and fixed selling and administrative costs were $30,000. Prepare an absorption costing income statement. BASLER MANUFACTURING Income Statement (Absorption Costing) $ $ $ eTextbook and Media 2:01 PM ) 11/2/2019 w
How many units did the company sell in 2018 on this general accounting question?
Calculate Gower’s total manufacturing cost per unit in 2017, and estimate total manufacturing cost per unit in 2018.
Please help me figure a-d
A.Prepare Statement of Income and Expenses with a marginal contribution approach. Empresas La Torre presents the following information for the year ended December 31, 2020: Product Costs: Direct materials (Variables) $ 50.00 per unit Direct Labor (Variable) $ 20.00 per hour Variable Indirect Costs $ 10.00 per hour Total Fixed Indirect Costs $ 250,000 Period Expenses Seller Commissions $ 20.00 per unit Variable Administrative Expenses $ 30.00 per unit Total Fixed Administrative Expenses $ 150,000 The company sells solar batteries at $ 200.00 per unit. Making each battery takes 2 hours of direct labor. The company taxes its income at 40%. If the Company sells 10,000 units, prepare a statement of income and expenses using the marginal contribution approach.

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