Exercises 1. On December 31, the end of the first year of operations, Frankensteiner Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Frankensteiner Inc. Variable Costing Income Statement For the Year Ended December 31, 2020 Sales 9,600,000 Variable cost of goods sold: Variable cost of goods manufactured $ 5,376,000 Inventory, December 31 Total variable cost of goods sold Manufacturing margin (366,000) 5,010,000 4,590,000 Total variable selling and admin. expenses Contribution margin 1,250,000 3,340,000 Fixed Costs Fixed manufacturing costs $ 1,464,000 Fixed selling and admin. Expenses Total fixed costs | Income from operations 890,000 2,354,000 986,000 Determine the unit cost of goods manufactured, based on (A) the variable costing concept and (B) the absorption costing concept. %24

Exercises 1. On December 31, the end of the first year of operations, Frankensteiner Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Frankensteiner Inc. Variable Costing Income Statement For the Year Ended December 31, 2020 Sales 9,600,000 Variable cost of goods sold: Variable cost of goods manufactured $ 5,376,000 Inventory, December 31 Total variable cost of goods sold Manufacturing margin (366,000) 5,010,000 4,590,000 Total variable selling and admin. expenses Contribution margin 1,250,000 3,340,000 Fixed Costs Fixed manufacturing costs $ 1,464,000 Fixed selling and admin. Expenses Total fixed costs | Income from operations 890,000 2,354,000 986,000 Determine the unit cost of goods manufactured, based on (A) the variable costing concept and (B) the absorption costing concept. %24

Name: Exercises1. On December 31, the end of the first year of operations,
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Exercises1. On December 31, the end of the first year of operations, Frankensteiner Inc. manufactured25,600 units and sold 24,000 units. The following income statement was prepared, based on thevariable costing concept:Frankensteiner Inc.Variable Co

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

Revenue and cost details for a company’s single product are as follows:BWP per unit BWP per unitSales priceVariable costFixed costProfit15827(23)4Fixed costs are absorbed based on the company’s normal activity, which is also the company’s budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400.Required: a. Calculate the breakeven point in units for each period. b. Calculate the number of units to be produced and sold to achieve a profit of P6,600 for the period
Please do not give solution in image format
Absorption Costing Income Statement On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept: Sales (90,000 units) $1,530,000 Variable cost of goods sold: Variable cost of goods manufactured (110,000 units x $12 per unit) $1,320,000 Less ending inventory (20,000 units x $12 per unit) 240,000 Variable cost of goods sold 1,080,000 Manufacturing margin $450,000 Variable selling and administrative expenses 15,000 Contribution margin $435,000 Fixed costs: Fixed manufacturing costs $49,500 Fixed selling and administrative expenses 28,000 77,500 Income from operations $357,500 a. Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Tudor Manufacturing Co. Income Statement-Absorption Costing For the Month Ended June 30 Sales Cost of goods sold: Cost of goods manufactured Less ending inventory…
You have been provided the following data relating to Milestone Ltd.: Particulars Selling Price Amount 195 Units in beginning inventory Units produced 2,120 Units sold 1,550 Units in ending inventory 570 Variable costs per Unit: Direct Material 92 Direct Labor 35 Variable manufacturing overhead Variable selling and administrative overhead 13 7 Fixed Costs: Fixed manufacturing overhead Fixed selling and administartive 29,680 29,450 Calculate the total period cost for the month under variable costing method. a. Total period cost under the variable costing is $62,580 b. Total period cost under the variable costing is $69,980 c. Total period cost under the variable costing is $83,900 d. Total period cost under the variable costing is $50,350 %24
Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 33,900 hats, of which 32,200 vwere sold. Operating data for the month are summarized as follows: Sales $296,240 Manufacturing costs: Direct materials $176,280 Direct labor 47,460 Variable manufacturing cost 20,340 Fixed manufacturing cost 20,340 264/420 Selling and administrative expenses: Variable $16,100 Fixed 11,750 27,850 During August Head Gear Inc, manufectured 30,500 hats and sold 32,200 hats. Operating data for August are summarized as folovsi Sales $296,240 Manufacturing costs: Direct materials $158,600 Direct labor 42.700 Variable manufacturing cost 18,300 20,340 239,940 Fixed manufacturing cost Selling and administrative expenses: $16.100 Variable 11.750 27 850 Fixed Required:
Please help me with show all Calculation thanku
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and sold 12,000 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Sales $2,160,000 Variable cost of goods sold: Variable cost of goods manufactured $1,620,000 Inventory, March 31 (324,000) Total variable cost of goods sold (1,296,000) Manufacturing margin $864,000 Total variable selling and administrative expenses (96,000) Contribution margin $768,000 Fixed costs: Fixed manufacturing costs $210,000 Fixed selling and administrative expenses 45,000 Total fixed costs (255,000) $513,000 Operating income Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,300 units and sold 2,800 units. The following income statement was prepared, based on the variable costing concept: Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, March 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Variable costing Absorption costing $508,200 (77,000) $231,000 72,800 $896,000 (431,200) $464,800 (106,400) $358,400 (303,800) $54,600 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
Please show work.
Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (6, 100 units) $201, 300 Cost of goods sold: Cost of goods manufactured (7, 100 units) $163,300 Inventory, April 30 (1,000 units) (23,000) Total cost of goods sold (140, 300) Gross profit $61,000 Selling and administrative expenses (36,830) Operating income $24, 170 If the fixed manufacturing costs were $ 44,091 and the fixed selling and administrative expenses were $18, 040, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the Month Ended April 30 $Sales Variable cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - $ - Select - Fixed costs: $Variable cost of goods sold Fixed…
The level of inventory of a manufactured product has increased by 7,848 units during a period. The following data are also available Variable Fixed Unit manufacturing costs of the period $11.00 $3.00 Unit operating expenses of the period 2.00 5.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $23,544 increase Ob. $62,784 decrease Oc. $62,784 increase Od. $23,544 decrease