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Exercise 19-12 Absorption costing and overproduction LO C1 Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead Cost of goods sold: Cost of goods sold per unit Number of units sold Total cost of goods sold $ S $ $ Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) 69,000 units 56.90 per unit 9.90 per unit 7.40 per unit 11.90 per unit $1,014,300 in total Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold: Production volume 69,000 units 98,000 units Jacquie Inc. Income statement through gross margin Sales volume 69,000 units 69,000 units If Jacquie increases its production to 98,000 units, while sales remain at the current 69,000-unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production.

Exercise 19-12 Absorption costing and overproduction LO C1 Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead Cost of goods sold: Cost of goods sold per unit Number of units sold Total cost of goods sold $ S $ $ Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) 69,000 units 56.90 per unit 9.90 per unit 7.40 per unit 11.90 per unit $1,014,300 in total Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold: Production volume 69,000 units 98,000 units Jacquie Inc. Income statement through gross margin Sales volume 69,000 units 69,000 units If Jacquie increases its production to 98,000 units, while sales remain at the current 69,000-unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production.

FINANCIAL ACCOUNTING
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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Exercise 19-12 Absorption costing and overproduction LO C1 Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead Cost of goods sold: Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) Cost of goods sold per unit Number of units sold Total cost of goods sold 69,000 units 56.90 per unit 9.90 per unit 7.40 per unit 11.90 per unit $1,014,300 in total $ S $ $ Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold: Production volume 69,000 units 98,000 units Jacquie Inc. Income statement through gross margin Sales volume 69,000 units 69,000 units If Jacquie increases its production to 98,000 units, while sales remain at the current 69,000-unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production.
Transcribed Image Text:Exercise 19-12 Absorption costing and overproduction LO C1 Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead Cost of goods sold: Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) Cost of goods sold per unit Number of units sold Total cost of goods sold 69,000 units 56.90 per unit 9.90 per unit 7.40 per unit 11.90 per unit $1,014,300 in total $ S $ $ Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold: Production volume 69,000 units 98,000 units Jacquie Inc. Income statement through gross margin Sales volume 69,000 units 69,000 units If Jacquie increases its production to 98,000 units, while sales remain at the current 69,000-unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production.
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