Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor $25 per unit; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead costs, $10,000; variable selling and administrative cost, $5 per unit; total fixed selling and administrative costs, 7,500. There are no beginning inventories What is the ending balance in finished goods inventory using variable costing if 450 units are sold? $2,750 $5,000 $500 $2,500

Q: Grainger Company produces only one product and sells that product for $90 per unit. Cost information…

A: Absorption Costing:- It includes all direct manufacturing costs which are related to the production…

Q: Stone Industries gathered the following information for the year ended June 30, 20X5         Units…

A:

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A:

Q: ​Circetrax, Inc. has provided the following financial information for the​ year:   Finished Goods​…

A: Under the absorption costing, fixed manufacturing overhead is considered as a product cost and…

Q: Grainger Company produces only one product and sells that product for $100 per unit. Cost…

A: Under variable costing, fixed manufacturing overhead is considered as a period cost and deducted a…

Q: The following data relates to Mandarin Company. Units in beginning inventory — Units produced…

A: Formula: Ending inventory = Units produced - units sold Deduction of units sold from units produced…

Q: ABC Company produced 3,000 units and sold 2,500 units. Total fixed manufacturing overhead cost is…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: Dunn Company incurred the following costs while producing 450 units: direct materials, $6 per unit;…

A: Under variable costing, all variable cost that are incurred for manufacturing and selling the…

Q: A. Compute net income under i. Absorption Costing $ ii. Variable Costing

A: The variable costing method and absorption costing are two methods of costing to find the cost of…

Q: Delilah Incorporated provided the following information regarding its only product: Sale price per…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: nger Company produces only one product and sells that product for $110 per unit. Cost information…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Donovan company Variable Costing Method Particulars Amount in ($) Sales( 500 units *$100)…

Q: During the most recent year, ABC Company reported the following data. During the year 10,000 units…

A: Under absorption costing fixed overhead costs are allocated to each unit of product produced during…

Q: Grainger Company produces only one product and sells that product for $90 per unit. Cost information…

A: Formula: Net income = Revenues - expenses Deduction of expenses from revenues derives the net…

Q: Zeta Inc. had net income of $918,000 based on variable costing. Beginning and ending inventories…

A: Net income as per absorption costing: =Net income under variable costing-(Beginning Inventory-…

Q: Grainger Company produces only one product and sells that product for $110 per unit. Cost…

A: In absorption costing , fixed manufacturing overhead will be included in stock valuation where as in…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: Fixed overhead per unit = total Fixed overhead/units produced = $390000/39000 units = $10 per unit

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Definition:   Variable costing: It refers to the method of product costing in which the price of the…

Q: Findus Foods company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit.…

A: Absorption Costing -Under Absorption Costing method of product cost is calculated by considering…

Q: Cecil Incorporated provided the following information regarding its only product: Sale price per…

A: A special order is a one-time order that is received from not a regular customer. Special order…

Q: Cecil Incorporated provided the following information regarding its only product: Sale price per…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Grainger Company produces only one product and sells that product for $110 per unit. Cost…

A: Solution:- A)i-Calculation of net income under Absorption Costing as follows under:- Note:-…

Q: Panta Corp had net income of P226,000 based on variable costing. Beginning and ending inventories…

A: Absorption costing is one of the method of costing where both direct and indirect cost are included…

Q: A company has a net income of $918,000 based on variable costing method. Beginning and ending…

A: Absorption costing is a kind of costing method. Net income under absorption costing can be found out…

Q: ABC Company produced 3,000 units and sold 2,500 units. Total fixed manufacturing overhead cost is…

A: Under absorption costing, the fixed overheads are consumed for the goods sold during the period.

Q: The Bradley Corporation produces a product with the following costs as of July 1, 20X1: Material…

A: Gross profit means where the cost of goods sold is deducted from net sales. Net profit means where…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: Absorption Costing: Absorption Costing is a costing system that is used in valuing inventory. It not…

Q: Grainger Company produces only one product and sells that product for $110 per unit. Cost…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: Under absorption costing, fixed manufacturing costs are also allocated to the units produced.…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Operating income is computed by subtracting the variable cost and fixed cost from the sales revenue.…

Q: The following data relates to Alpha Company. Units in beginning inventory — Units produced 25,000…

A: Under variable costing, ending inventory is valued at variable costs and fixed cost is considered as…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.