Course Content / Chapter 17 Chapter 17 Homework Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter. The following data are available for the third quarter of the year. Total fixed manufacturing overhead Fixed selling and administrative Sales price per case Direct materials per case Direct labor per case Variable manufacturing overhead per case Variable $0 Required a. Compute the cost per case under both absorption costing and variable costing. Absorption $ 0 A X Sales Cost of goods sold Gross profit x Manufacturing overhead Net income b. Compute net income under both absorption costing and variable costing. Do not use a negative sign with your answers. SMUCKERS Absorption Costing Income Statement For the Third Quarter $60,000 20,000 $ ✔ ✓ 30 14 5 3 ♦ x $ Chapter 17 Homework 0x 0x 0x 0x 0x

Course Content / Chapter 17 Chapter 17 Homework Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter. The following data are available for the third quarter of the year. Total fixed manufacturing overhead Fixed selling and administrative Sales price per case Direct materials per case Direct labor per case Variable manufacturing overhead per case Variable $0 Required a. Compute the cost per case under both absorption costing and variable costing. Absorption $ 0 A X Sales Cost of goods sold Gross profit x Manufacturing overhead Net income b. Compute net income under both absorption costing and variable costing. Do not use a negative sign with your answers. SMUCKERS Absorption Costing Income Statement For the Third Quarter $60,000 20,000 $ ✔ ✓ 30 14 5 3 ♦ x $ Chapter 17 Homework 0x 0x 0x 0x 0x

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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eBook Question Content Area Income Statements and Firm Performance: Variable and Absorption Costing Jellison Company had the following operating data for its first two years of operations: Variable costs per unit: Direct materials 4.00 Direct labor $2.90 Variable overhead 1.50 Fixed costs per year: Overhead 180,000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing. Required: Question Content Area 1. Prepare income statements for both years using absorption costing. If an amount is zero, enter "0". Jellison CompanyAbsorption-Costing Income StatementFor Years 1 and 2 Year 1 Year 2 Gross profit Operating income Cost of goods sold:…
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all Youlube Maps GE News G Translate Q Moral Choices Tes... CengageNOWv2 .. Bb Home Page- PSY... 8.5" x 14" Tri eBook Variable Costing Income Statement On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (96,000 units) $4,440,000 Cost of goods sold: Cost of goods manufactured $3,120,000 Less ending inventory (24,000 units) 624,000 Cost of goods sold 2,496,000 Gross profit $1,944,000 Selling and administrative expenses 288,000 Income from operations $1,656,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $132,000 and the variable selling and administrative expenses were $115,200. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Rhys Company Income Statement-Variable Costing For the Month Ended July 31 Sales V Variable cost of goods sold: Variable cost of goods manufactured…
QUESTION 1.3 HOW MANY CAKES TO GENERATE $1,100 PROFIT Please explain how many cakes would need to be sold to generage a profit of $1,100 based on the information below. Price per cake $14.71 Variable Costs Ingredients $2.25 Direct Labor $1.02 Overhead $.2 Fixed Cost per month $4,476
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order Processing Costs 1 3,000 $49,620 2 1,500 30,225 4,400 72,420 2.800 49,140 2.300 41,865 25,860 37,500 3 4 S 6 7 1,200 2,000 NOTE: Round variable cost per unit answers to two decimal places, if appropriate. (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 15:400 +5 24.26 * 8400 + M.SS* Correct (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly production costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter Diagram $ 15,622 X+$ 23.93 XX
Question 5.1 Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month. Selling price Units in beginning inventory $105 110 Units produced 6,400 Units sold 6,100 Units in ending inventory Variable costs per unit: 410 Direct materials $62 Direct labour $48 Variable manufacturing overhead Variable selling and administrative Fixed costs: $3 $7 Fixed manufacturing overhead Fixed selling and administrative $64,000 $35,600 Submission Instructions: 1. Under variable costing, identify the unit product cost for the month. 2. What is the unit product cost for the month under absorption costing? 3. Prepare an income statement for the month using the contribution format and the variable costing method. 4. Prepare an income statement for the month using the absorption costing method.
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SEARCH ASK CHAT MATH SOLVER Question Diego Company manufactures one product that is sold for $77 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 59,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 10 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,298,000 Fixed selling and administrative expense $ 662,000 The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing…
Exercise 6-7B. +Exercise 6-9B Using the contribution margin approach for a special order decision Benton Company produces and sells a food processor that it prices at a 32 percent markup on total cost. Based on data pertaining to producing and selling 50,000 food processors, Benton computes the sales price per food processor as follows. Unit-level costs $ 750,000 Fixed costs 500,000 $1,250,000 Total cost (a) Markup (a x 0.32) 400,000 Total sales revenue (b) $1,650,000 Sales price per unit (b 50,000) 2$ 33.00 Required Benton receives a special order for 7,000 food processors for $20 each. Benton has excess capacity. Calculate the contribution margin per unit for the special order. Based on the contribution margin per unit, should Benton accept the special order? a. b. Support your answer by preparing a contribution margin income statement for the special order. Exercise 6-10B Making an outsourcing decision Swartz Boats Company currently produces a battery used in manufacturing its…