David Company operating result under absorption costing below: 2019 Sales.. $ 270,000 Cost of goods sold (variable and fixed) 180,000 Gross profit.... $ 90,000 Selling and Administrative expenses (variable and fixed) 38,000 tao Net operating income... $52,000 Production and operating activities shown as follows: 2019 2020 Beginning inventory.. O units Production... 20,000 units 30,000 units Sales. . 18,000 units 23,000 units The company's selling and variable cost per unit remained constant from year to year. The Company has a total fixed manufacturing overhead of $60,000 and fixed selling and administrative expenses of $20,000 per year. Company uses first-in first-out (FIFO) inventory method. Answer the followina from shaDd Answer the following from the David Company financial data given above. (Do NOT use "comma" or "dollar" signs in your answers). Determine the amount of the following for year 2020 Answer 1. Unit product cost under variable costing. ta 2. Unit product cost under absorption costing. o 3. Total cost of goods manufactured under absorption costing
David Company operating result under absorption costing below: 2019 Sales.. $ 270,000 Cost of goods sold (variable and fixed) 180,000 Gross profit.... $ 90,000 Selling and Administrative expenses (variable and fixed) 38,000 tao Net operating income... $52,000 Production and operating activities shown as follows: 2019 2020 Beginning inventory.. O units Production... 20,000 units 30,000 units Sales. . 18,000 units 23,000 units The company's selling and variable cost per unit remained constant from year to year. The Company has a total fixed manufacturing overhead of $60,000 and fixed selling and administrative expenses of $20,000 per year. Company uses first-in first-out (FIFO) inventory method. Answer the followina from shaDd Answer the following from the David Company financial data given above. (Do NOT use "comma" or "dollar" signs in your answers). Determine the amount of the following for year 2020 Answer 1. Unit product cost under variable costing. ta 2. Unit product cost under absorption costing. o 3. Total cost of goods manufactured under absorption costing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:David Company operating result under absorption costing below:
2019
Sales..
$ 270,000
Cost of goods sold (variable and fixed)
180,000
...
Gross profit.
$90,000
Selling and Administrative expenses (variable and
fixed)
38,000
tao
Net operating income...
$52,000
Production and operating activities shown as follows:
2019
2020
Beginning inventory..
O units
?
Production...
20,000 units 30,000 units
Sales..
18,000 units 23,000 units
The company's selling and variable cost per unit remained constant from year to year. The
Company has a total fixed manufacturing overhead of $60,000 and fixed selling and administrative
expenses of $20,000 per year. Company uses first-in first-out (FIFO) inventory method.
Answer the followin fram tha D-id
Answer the following from the David Company financial data given above. (Do NOT use "comma"
or "dollar" signs in your answers).
Determine the amount of the following for year 2020
Answer
1. Unit product cost under variable costing.
tao
2. Unit product cost under absorption costing.
3. Total cost of goods manufactured under absorption costing
4. Total variable cost of goods sold.
5. Variable selling and administrative expenses per unit.
6. Total variable expenses (manufacturing & non-
manufacturing).
7. Cost of beginning finished goods inventory under absorption
costing.
8. Company's net operating income under variable costing.
9. Fixed manufacturing overhead cost deferred in the ending
inventory.
10. Company's net operating income under absorption costing.
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