Current AtterCrane Company sells its product for $5600 per unit. Variable costs per unit are: manufacturing, $2600, and selling and administrative,$25. Fixed costs are: $18000 manufacturing overhead, and $24000 selling and administrative. There was no beginning inventory at1/1/18. Production was 20 units per year in 2018-2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020. Incomeunder variable costing for 2020 isO $21000.O $29400.O $25650.O $25800.

The variable costs are the costs that change with change in production level. The contribution…

Answered: Crane Company sells its product for…

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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Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Crane Company sells its product for $10500 per unit. Variable costs per unit are: manufacturing, $5800; and selling and administrative, $120. Fixed costs are: $33600 manufacturing overhead, and $43600 selling and administrative. There was no beginning inventory at 1/1/20. Production was 24 units per year in 2020–2022. Sales were 24 units in 2020, 20 units in 2021, and 28 units in 2022. Income under absorption costing for 2022 is $51040. $38560. $45440. $44360.
Jordan Company incurs annual fixed costs of $67,740. Variable costs for Jordan's product are $28.80 per unit, and the sales price is $45.00 per unit. Jordan desires to earn an annual profit of $57,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
Weat
KALIBO CORP. prepared the following absorption-costing income statement for the year ended May 31, 2019 Sales (16,000 units) Cost of goods sold Gross margin Selling and administrative expenses Operating income Additional information follows: Selling and administrative expenses include P1.50 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were P11 per unit. Actual fixed costs were equal to budgeted fixed costs. REQUIREMENT: Prepare a variable-costing income statement for the same period. P 320,000 216.000 P104,000 46.000 P 58,000 Absorption Costing Income Statement (Conversion from Variable Net Income) 4. LEGAZPI COMPANY manufactures and sells premium tomato juice by the gallon. LEGAZPI just finished its first year of operations. The following data relates to this first year:
Which assets depreciate?
Assume that projected revenue for 2018 is 1,058,949. Also assume the following projected 2018 costs in each of the cost categories from question one: Packaged (Cans & Bottles) $140,847 Kegs $65,238 Shrinkage/WIP Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $30,000 Trade Promotion $30,000 Sales Promotion $18,000 Salaries & Benefits $180,000 Given these costs, compute Shannon’s projected contribution in dollars.
BioClinic sells its product for $80 per unit. During 2025, it produced 120,000 units and sold 105,000 units. Costs per unit are: direct materials $25, direct labor $10, variable overhead $5, and variable operating expenses $3. Fixed costs are $840,000 manufacturing overhead, and $75,000 operating expenses. Assuming no variances were reported, no beginning inventory and the company uses absorption costing, what will be reported as gross margin? Question options: a) $3,600,000. b) $3,885,000. c) $2,760,000. d) $3,465,000.
In 2012, Grant Co. sold 160,000 units of its product at a selling price of $40. The variable cost per unit was $30, and Grant reported net income for the year of $200,000. What was the amount of Grant's fixed costs for the year?
Tampico, Inc. sells a single product for $20. Variable costs are $8 per unit and fixed costs total $120,000 at a volume level of 5,000 units. Assuming that fixed costs do not change, Tampico
In the year 2020, kim plastics sold 100,000 units of its product. Selling price per unit was 100. Standard and actual costs per unit based on production of 100,000 units were variable cost=P25, Fixed costs=P50. Find operating income as per direct costing, break even point in value.
Variable and Absorption CostingChandler Company sells its product for $108 per unit. Variable manufacturing costs per unit are $49, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $17 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory for the year. During the year, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company be higher if calculated using variable costing or using absorption costing?Calculate reported income using each method.Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Fixed Costs Answer Less: Ending Inventory Answer Cost of Goods Sold Answer Answer Answer Answer Answer Administrative expense…

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