esProblem 4-13 (Algo) Cost of goods sold-LIFO and FIFO [LO4-2]At the end of January, Mineral Labs had an inventory of 945 units, which cost $11 per unit to produce. During February the companyproduced 1,750 units at a cost of $15 per unit.a. If the firm sold 2,550 units in February, what was the cost of goods sold? (Assume LIFO inventory accounting.)Cost of goods soldb. If the firm sold 2,550 units in February, what was the cost of goods sold? (Assume FIFO inventory accounting.)Cost of goods sold

FIFO (First In, First Out): Goods purchased or produced first are the ones sold first.LIFO (Last In,…

Answered: es Problem 4-13 (Algo) Cost of goods…

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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Applying Differential Analysis to Profitability Scenarios Assume that Company A and Company B sell a microwave popcorn popper for $20. Although the companies have different cost structures, both companies currently show a profit of $21,000 based on sales of 14,000 units as shown in the following financial statements for the month of June. Both companies hold no inventory and sell contractual orders in the month. For the Month of June Company A Company B Sales ($20) $280,000 $280,000 Variable cost of goods sold ($5.00, 7.50, Company A and B, respectively) 70,000 105,000 Variable selling and administrative costs ($2.00, $4.00, Company A and B, respectively) 28,000 56,000 Contribution margin 182,000 119,000 Fixed cost of goods sold 105,000 70,000 Fixed selling and administrative costs 56,000 28,000 Profits Before-Tax $21,000 $21,000 For each company, determine the impact on monthly profit using differential analysis for each of the following separate scenarios.1.…
R 116 Selling price (per unit) Units in opening inventory 600 Units manufactured 2 550 Units sold 3 050 Units in closing inventory 100 Variable costs per unit: Direct materials R12,00 Direct labour R50,00 Variable manufacturing overhead R6,50 Variable selling and administrative R10,00 Fixed costs: Fixed manufacturing overhead R81 000 Fixed selling and administrative R19 000 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. (where applicable, round off amounts to two decimal places) 2.1 Calculate the unit product cost for the month under marginal costing. 2.2 Calculate the unit product cost for the month under absorption costing 2.3 Prepare an income statement for the month using the absorption costing method. 2.4 Prepare an income statement for the month using the Marginal costing method.
Question 5 In 2019, SixthZ had 75 treehouses in its ending inventory. Variable product costs per treehouse were $450, and fixed manufacturing overhead costs were applied at $75 per treehouse (which was the same as last year). The company's net operating income was $1.250 higher under absorption costing than it was under variable costing. What was the number of units of product in beginning inventory? 72 treehouses O92 treehouses O 58 treehouses 00 treehouses
Question 16 A merchandising company reported the following results for July, shown here $402.800 $169,100 $17.100 $14.200 $7.600 $30,100 Sales Cost of goods sold (all variable)) Total variable selling expense Total fised selling expense Total variable administrative expense Total fixed administrative expense
PROBLEM 4- Betty, Inc., incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses P10 P5 P2 P4 P90,000 P300,000 During the last year, 30,000 units were produced and 25,000 units were sold. The Finished Goods inventory account at the end of the year shows a balance of P85,000 for the 5,000 unsold units. Required: 1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer. 2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders. a. Is the P85,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes? Explain. b. At what dollar amount should the 5,000…
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Problem 13-11 (IAA) Wholesome Company sold merchandise on a consignment basis to dealers. The gross profit was 25% above cost. The dealer is paid a 10% commission of the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment activities occurred during the current year: Manufacturing cost of goods shipped on consignment Sales price of merchandise sold by dealers Payments remitted by dealers after deducting commission 8,800,000 9,600,000 6,300,000 What was the gross profit on 'consignment sales? a. 2,400,000 b. 1,920,000 c. 1,700,000 d. 1,220,000
Question 1Limonade produced 11,000 cases of powdered drink mix and sold 10,000 cases in April 2010.The sale price was $25, variable costs were $10 per case ($8 manufacturing and $2 selling &administrative) and total fixed costs were $75,000 ($55,000 manufacturing and $20,000selling & administrative).The company had no beginning inventory.Required:a) Calculate the following for Limonadei) The total cost per unitii) The value of ending inventories using marginal costingiii) The value of ending inventories using total costingb) Prepare the April income statement using variable costing.
Please help with 6 & 7

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