Chance, Inc. sold 3,000 units of itsproduct at a price of $72 per unit. Totalvariable cost per unit is $51, consistingof $32 in variable production cost and$19 in variable selling andadministrative cost. Compute themanufacturing margin for thecompany under variable costing.A.B.C.D.E.$96,000$63,000$120,000$216,000($90,000)Training

Income statement is a financial statement that shows the profitability, total revenue and total…

Answered: Chance, Inc. sold 3,000 units of its…

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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Accounting.
Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of $800,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit 0.90 The cost per unit for the production of the company's product is Oa. $13.15 Ob. $15.40 Oc. $15.75 Od. $17.22 $82,000 45,000 5.50 7.65 2.25
Puritan Apparels is a clothing retailer. Unit costs associated with one of its products, Product DCF 130, are as follows: Direct materials $110 Direct manufacturing labor Variable manufacturing overhead 20 75 Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries 35 14 28 Total $282 ト What are the indirect nonmanufacturing variable costs per unit associated with Product DCF130? O A. $14 O B. $42 OC. $254 OD. $130
15. Orion Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $23 Variable cost per unit: Direct material $4.00 Direct manufacturing labor $1.60 Variable manufacturing Overhead $0.40 Sales commission $2.10 Annual fixed costs $100,000 The company sells 12,000 units at the end of the year. The contribution per unit is? a. $16.50 b. $14.90 c. $18.60 d. $19.00
Wang Company manufactures and sells a single product that sells for $640 per unit; variable costs are $352 per unit. Annual fixed costs are $985,500. Current sales volume is $4,390,000. Management targets an annual income of $1,315,000. Compute the unit sales to earn the target income. Select one: a. 6.164. Ob. 7,988. O c. 19,383. O d. 3,422. Oe. 4,934.
Last year, Regio Company incurred the following costs: Direct materials 50,000 Direct Labor 20,000 Manufacturing overhead 130,000 Selling expense 40,000 Administrative expense 36,000 Regio produced and sold 10,000 units at a price of 31 each. 1. What is the prime cost per unit? 2. What is the conversion cost per unit? 3. What is the cost of goods sold per unit 4. What is the gross profit per unit? 5. What is the operating income?
Vishnu
What was Ether Corporation's net operating income for the year using variable costing? P181,000 P281,000 P271,000 P371,000
Wilco reports the following data for the most recent period: Variable MOH $40,000 Direct Materials $100,000 Direct Labor $80,000 Fixed MOH $20,000 Variable Admin Costs $20,000 Fixed Admin Costs $4,000 Units Produced 20,000 10,000 Units Sold Wilco's Variable Manufacturing Cost per Unit is what amount? ○ $22 per unit $12 per unit ○ $24 per unit O $11 per unit
Kingston Company sells its product for $300 per unit. The company's accountant provided the following cost information: Manufacturing costs Selling costs Administrative costs $20,300 + 46% of sales $13,100+ 23% of sales $25,400+ 8% of sales. What is Kingston Company's contribution margin ratio?
MAS 1 Company sells 10,000 units of its products to SM Supermarket. Its selling price is P 50 per unit. The details of its costs are as follows: Direct Materials P 6 per unit Direct Labor P 10 per unit Variable Factory Overhead P 4 per unit Fixed Factory Overhead P 150,000 Variable Expenses P 5 per unit Fixed Expenses P 50,000 Assume each questions as independent assumptions: 10. Contribution margin at P100,000 profit 11. Contribution margin at (P50,000) loss 12. Units sold when there is P100,000 profit 13. Units sold when there is (P50,000) loss 14. Fixed costs and expenses at P100,000 profit 15. Fixed costs and expenses at (P50,000) loss
Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 10 9. %24 24 $87,750 $ 315,000 During this year, 29,250 units were produced and 25,250 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $84,000 for the 4,000 unsold units. Required: 1-a. Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing. 1-b. Does it appear that the company is using variable costing or absorption costing to assign costs to the 4,000 units in its Finished Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. a. Is Finished Goods inventory of $84,000 the correct amount to include on the…

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