Everlasting Co. has the following data pertaining to its 1st quarter of operations: Activity level - units Production Sales January February 10,000 10,000 March 10,000 10,000 7,000 11,000 Costs incurred in the different areas of operation were as follows: Per Per unit month P 20 Direct Materials Direct Labor Variable factory overhead 15 12 Fixed factory overhead Variable selling and administrative P60,000|| 5 Fixed selling and administrative 30,000 Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit.

Everlasting Co. has the following data pertaining to its 1st quarter of operations: Activity level - units Production Sales January February 10,000 10,000 March 10,000 10,000 7,000 11,000 Costs incurred in the different areas of operation were as follows: Per Per unit month P 20 Direct Materials Direct Labor Variable factory overhead 15 12 Fixed factory overhead Variable selling and administrative P60,000|| 5 Fixed selling and administrative 30,000 Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit.

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

[The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ Units produced this year Units sold this year 300 per unit 115,000 units 118,250 units 3,250 units Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $135) Fixed (3,250 units x $80) $ 438,750 260,000 Total $ 698,750 Manufacturing costs this year Direct materials $ Direct labor $ Overhead costs this year Variable overhead $3,000,000 Fixed overhead $7,400,000 es Selling and administrative costs this year Variable $1,300,000 4,400,000 Fixed 1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement 3 4 of 5 H M 2 *********** → Check my w
Please Answer 1-10
Prepare the Income Statement for the month ended 31 December 2021 using the variable costing method.
Income Statements under Absorption Costing and Variable Costing Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (70,400 units) during the first month, creating an ending inventory of 6,400 units. During February, the company produced 64,000 units during the month but sold 70,400 units at $90 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Manufacturing costs in February 1 beginning inventory: Variable Fixed Total Manufacturing costs in February: Variable Fixed Total Selling and administrative expenses in February: Variable Fixed Total Number of Units Cost of goods sold: 6,400 $36.00 6,400 14.00 64,000 64,000 Unit Cost 70,400 70,400 Total Cost $230,400 89,600 $50.00 $320,000 $36.00 $2,304,000 15.40 985,600 $51.40 $3,289,600 $18.20 $1,281,280 7.00 492,800 $25.20 $1,774,080 a. Prepare an income statement according to the absorption…
owe subject-Accounting
(b) Merry Company produces clothes. One of the company's products is KIKILULU Skirts which are sold for RM90 each. The standard cost of producing 100 units of KIKILULU skirt is shown below: RM Direct labour 500 Direct material 2,000 Variable production overhead 1,200 Fixed production overhead 1,800 ТОTAL 5,500 Production and inventory data during the month of October 2021 is given below: Units Unit production 5000 Opening inventory 10,000 Closing inventory 8,000 • The company's normal production is 120,000 units per annum. • Fixed production overhead cost spread evenly over the year. • The fixed selling and distribution cost per year is RM78,000. Variable selling and distribution cost is RM5.00 per unit.
Great Outdoze Company manufactures sleeping bags, which sell for $66.10 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.10 10.30 7.40 k Budgeted fixed overhead in 20x1 was $157,500 and budgeted production was 25,000 sleeping bags. The year's actual production was 25,000 units, of which 21,300 were sold. Variable selling and administrative costs were $1.30 per unit sold; fixed selling and administrative costs were $22,000. at
The inventory cost computed under absorption costing is ____ the inventory cost computed using variable costing. Group of answer choices half of thrice as much equal to greater than
Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.
Over extended periods of time, the net income figures reported under absorption costing will be: a. Equal to net income reported under variable costing b. Higher or lower because no generalization can be made c. Less than net income reported under variable costing d. Greater than net income reported under variable costing
The cost of the ending inventory under absorption costing is higher than the cost of ending inventory under varibale costing by 1. an amount equal to the fixed overhead cost per unit. 2. an amount computed by multiplying the units in the ending inventory by the fixed costs per unit. 3. an amount equal to the difference in the income amounts under both costing methods. 4. the amount equal to the fixed overhead cost charged to expense during the period.
22. Costing is referred to as the techniques and processes of a.Apportion of expenses b.Distribution of labor c.Ascertainment of costs d.Allocation of resource 23. Identify the cost accounting objective that is becoming increasingly important due to growing competition. a.Guide to business policy b.Ascertainment of cost c.Cost control d.Determination of selling price