E7.3 (LO 2), AN Moonbeam Company manufactures toasters. For the first 8 months of 2022, the company reported the followingoperating results while operating at 75% of plant capacity:Sales (350,000 units)Cost of goods soldGross profitOperating expensesNet incomeCost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.In September, Moonbeam receives a special order for 15,000 toasters at $7.60 each from Luna Company of Ciudad Juarez. Acceptance ofthe order would result in an additional $3,000 of shipping costs but no increase in fixed costs.Instructionsa. Prepare an incremental analysis for the special order.b. Should Moonbeam accept the special order? Why or why not?Use incremental analysis for special order.$4,375,0002,600,0001,775,000840,000$935,000

Special order is generally an order received by a customer for once. Whether to accept or reject an…

Answered: E7.3 (LO 2), AN Moonbeam Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cullumber Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (358,400 units) Cost of goods sold Gross profit Operating expenses Net income (a) Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Cullumber receives a special order for 24.500 toasters at $8.38 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs. Revenues Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cost of goods sold Operating expenses $4,377.000 2,590,720 1,786.280 837.760 Net…
Crane Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (364,000 units) Cost of goods sold Gross profit Operating expenses Net income Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Crane receives a special order for 18,600 toasters at $7.95 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, eg. 15.25 and all other computations and final answers to the nearest whole dollar, eg. 5,725. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg (45)) Revenues Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2…
Questions (d) and (e) are based on the information below. Sanit Ltd is an alcohol sanitizer manufacturing company that produced 175 000 units of 100 ml hand sanitizer bottles during the financial year ended 31 August 2020. The normal capacity is 100 000 units of hand sanitizer 100 ml bottles per year. The total cost per unit, excluding fixed production overheads, amounts to R50 per unit. The fixed production overheads incurred amounts to R700 000 for the year. The closing balance of finished goods is 5 000 units. Assume there is no opening balance. (d) The under / over recovered fixed production overheads that is recognised as an expense (cost of sales) according to IAS 2, Inventories, amounts to: 1) R525 000 over recovery 2) R525 000 under recovery 3) R700 000 over recovery 4) R0 (e) Calculate the cost of sales in the statement of profit or loss and other comprehensive income for the financial year end 31 August 2020 of Sanit Ltd: 1) R9 000 000 2) R9 180 000…
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (341,600 units) $4,375,000 Cost of goods sold 2,610,800 Gross profit 1,764,200 Operating expenses 841,190 Net income $923,010 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.In September, Moonbeam receives a special order for 23,100 toasters at $7.85 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.(a)Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)…
In April of 2021, Best Speaker Company expects to sell 470 bluetooth speaker units. Expenses are as follows: Cost of goods sold is P178 per unit Shipping costs are P31 per unit Miscellaneous costs are P10 per unit Salaries are P80,000 per month Rent is P20,000 per month Utilities are P10,000 per month Calculate the following for April 2021: A. Variable Operating Expense B. Fixed Operating Expense C. Total Operating Expense
Blossom Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Amount Per Unit Sales $5,040,000 $50.00 Cost of goods sold 3,528,000 35.00 Selling and administrative expenses 453,600 4.50 Net income $1,058,400 $10.50 Fixed costs for the period were cost of goods sold of $1,008,000, and selling and administrative expenses of $181,440.In July, normally a slack manufacturing month, Blossom receives a special order for 10,080 basketballs at $32.00each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and…
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000 units) $4,375,000 Cost of goods sold 2,600,000 Gross profit 1,775,000 Operating expenses 840,000 Net income $935,000 Cost of goods sold was 70% variable and 30% fixed. Operating expenses were 80% variable and 20% fixed. Moonbeam receives aspecial order for 15000 toasters at $7.60 each from Luna Company. Acceptance of the order would result in an additional $3000 of shipping cost but no increase in fixed assets. a) Prepare an incremental analysis for the special orderb) Should Moonbeam accept the special order. Why or why not?
Remar, Inc. reported the following results from sales of 5,000 units of Product C for the month of June 2019 (refer to the attached picture): Assume that Remar, Inc. increases the selling price of Product C by 10% on July 1, 2019. How many units of Product C would have to be sold in July 2019 in order to generate an operating income of P20,000? sales 200,000 variable cost 120,000 fixed cost 60,000 operating income 20,000
Carla Vista Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 118,700 units. Sales Cost of goods sold Selling and administrative expenses Net income Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $235,000. In July, normally a slack manufacturing month, Carla Vista receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses. x Your answer is incorrect. Revenues What is the minimum selling price on the special order to produce net income of $5.00 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ Cost of goods sold…
Please Correct answer With Explanation
In 19A, Starborne Inc. produces a machine for $675 and sells for $1,000. Cost of goods sold comprises of 35% of material, 40% of labour and remaining FOH. During this year, 1000 units have been sold. It is expected that next year, cost of material and labour will go up by 20% and 30% respectively. In order to be competitive, company is increasing the sale price per unit only by 10%, due to which it is expected to increase in volume by 15% also. You are required to prepare forecasted Income statement for 19B, if the prime cost is 60% of cost of goods sold.
Stanczyk Inc. started operations in January 2025. The company produces and sells cabinets for $5,200 each. The following information pertains to the cost and sales of the cabinets each year: Variable manufacturing costs $2,300 per unit Variable operating costs $65 per unit Fixed manufacturing costs $25,000 Fixed operating costs $12,000 The company produced 25 units per year for 2025, 2026, and 2027. The company sold 22 units in 2025, 20 units in 2026, and 26 units in 2027. It reported no volume variances for the three-year period. For 2025, Question options: a) the operating income for absorption costing may be greater than, equal to or less than operating income under variable costing. b) the operating income for absorption costing equaled operating income for variable costing. c) variable costing operating income exceeded absorption costing operating income by $3,000.…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS