Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price... $92 Units in beginning inventory. 0 Units produced 8,700 Units sold......... 8,300 Units in ending inventory 400 Variable costs per unit: Direct materials Direct labor....... Variable manufacturing overhead.... Variable selling and administrative... $13 $55 $1 $5 Fixed costs: Fixed manufacturing overhead......... Fixed selling and administrative. $130,500 $8,300 What is the net operating income for the month under absorption costing? Select one: O a. $(17,000) O b. $16,600 O c. $6,000 O d. $10,600

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price... $92 Units in beginning inventory. 0 Units produced 8,700 Units sold......... 8,300 Units in ending inventory 400 Variable costs per unit: Direct materials Direct labor....... Variable manufacturing overhead.... Variable selling and administrative... $13 $55 $1 $5 Fixed costs: Fixed manufacturing overhead......... Fixed selling and administrative. $130,500 $8,300 What is the net operating income for the month under absorption costing? Select one: O a. $(17,000) O b. $16,600 O c. $6,000 O d. $10,600

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...

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Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900
Galino Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory. Units produced Units sold.. Units in ending inventory. Variable costs per unit: Direct materials.. Direct labor....... Variable manufacturing overhead.. Variable selling and administrative Fixed costs: Fixed manufacturing overhead............... Fixed selling and administrative $99 B. $31,200 C. $13,000 D. $135,600 0 2,900 2,600 300 $27 $11 $6 $7 $104,400 $13,000 109. What is the total period cost for the month under the absorption costing approach? A. $104.400
Jarvix Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price... $111 Units in beginning inventory Units produced... Units sold. .. Units in ending inventory 400 8,800 8,900 300 Variable costs per unit: Direct materials Direct labor.... Variable manufacturing overhead.... Variable selling and administrative... $34 $37 $3 $9 ...*. ***** Fixed costs: Fixed manufacturing overhead Fixed selling and administrative.... $61,600 $169,100 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. A. What is the net operating income for the month under variable costing? B. What is the net operating income for the month under absorption costing?
WorrelCorporation manufactures avariety of products. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year............P71,000 Variable costing net operating income, this year............P92,000 Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year..............P2,000 Fixed manufacturing overhead costs released from inventory under absorption costing, this year..............P11,000 Required: a.Determine the absorption costing net operating income last year. b.Determine the absorption costing net operating income this year.
1. Cabaret Corporation produces a single product. Data concerning the company's operations last year appear below: Units in beginning inventory... Units produced. Units sold....... Selling price per unit.. Variable costs per unit: Direct materials. Direct labor. Variable manufacturing overhead.. Variable selling and administrative. Fixed costs in total: Fixed manufacturing overhead... Fixed selling and administrative... Assume direct labor is a variable cost. 10,000 9,000 $60 $15 $5 $2 $4 $200,00 0 $70,000 Required: a. Compute the unit product cost under both absorption and variable costing. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
182. Leigh Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory. Units produced. Units sold. Units in ending inventory. Variable costs per unit: Direct materials. Direct labor Variable manufacturing overhead.. Variable selling and administrative.......... Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative.... $100 300 1,200 1,400 100 $17 $59 $4 $8 $9,600 $1,400 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. Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing?
Grace Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $6,400 $18,600 $5,600 SS $(20,400) $ $ $ 95 0 3,500 3,100 400 22 What is the net operating income for the month under absorption costing? 2975 39 55,900 3,000
Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory $ 111 0 7,500 7,200 300 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the net operating income for the month under absorption costing? $24 $ 34 $ 1 $5 $217,500 $115, 200
Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory $ 115 Units produced 6,600 Units sold 6,400 Units in ending inventory 200 Variable costs per unit: Direct materials $ 26 $ 46 $ 7 $ 9 Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: $105,600 Fixed manufacturing overhead Fixed selling and administrative expense $ 51,200 What is the unit product cost for the month under absorption costing? Multiple Choice
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced $ 172 0 9,700 9,300 400 Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the net operating income (loss) for the month under variable costing? $6,000 $11,600 $17,600 ($40,000) $ 33 $75 $21 $ 25 $ 145,500 $ 10,300
Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory $ 145 0 2,500 2,180 320 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense The total gross margin for the month under the absorption costing approach is $ 46 $ 32 $ 6 $ 7 $ 37,500 $ 13,080
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable costs per unit:Manufacturing:Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15Variable manufacturing overhead . . . . . . . . . . . . . . $5Variable selling and administrative . . . . . . . . . . . . . . . $2Fixed costs per year:Fixed manufacturing overhead . . . . . . . . . . . . . . . . . . $250,000Fixed selling and administrative expenses . . . . . . . . $80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $60 per unit.Required:1. Assume the company uses variable costing:a. Compute the unit product cost for Year 1 and Year 2.b. Prepare an income statement…