FastTrack Inc. manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March are as follows. (Click to view the data.) The selling price per unit is $3,600. Required 1. Present statements of comprehensive income for January, February, and March under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Requirement 1a. Present statements of comprehensive income for January, February, and March unde Complete the top half of the statement of comprehensive income for each month first, and then complet January February Revenue Variable costs: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs www. Less: Ending inventory Variable cost of goods sold Variable operating costs Data table Unit data: Beginning inventory Production Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold $ Print 0 1,000 950 $ 1,200 $ 625 50 925 955 Done 1,200 $ 625 $ Fixed costs: Manufacturing costs 380,000 $ 130,000 380,000 $ 130,000 380,000 130,000 Operating (marketing) costs Note: The budgeted level of production used to calculate the budgeted fixed manufacturing cos per unit is 1,000. 20 1,300 1,220 1,200 625
FastTrack Inc. manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March are as follows. (Click to view the data.) The selling price per unit is $3,600. Required 1. Present statements of comprehensive income for January, February, and March under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Requirement 1a. Present statements of comprehensive income for January, February, and March unde Complete the top half of the statement of comprehensive income for each month first, and then complet January February Revenue Variable costs: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs www. Less: Ending inventory Variable cost of goods sold Variable operating costs Data table Unit data: Beginning inventory Production Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold $ Print 0 1,000 950 $ 1,200 $ 625 50 925 955 Done 1,200 $ 625 $ Fixed costs: Manufacturing costs 380,000 $ 130,000 380,000 $ 130,000 380,000 130,000 Operating (marketing) costs Note: The budgeted level of production used to calculate the budgeted fixed manufacturing cos per unit is 1,000. 20 1,300 1,220 1,200 625
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:FastTrack Inc. manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March are as follows.
(Click to view the data.)
The selling price per unit is $3,600.
Required
1. Present statements of comprehensive income for January, February, and March under (a) variable costing and (b) absorption costing.
2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing.
Requirement 1a. Present statements of comprehensive income for January, February, and March unde
Complete the top half of the statement of comprehensive income for each month first, and then complet
January
February
Revenue
Variable costs:
Beginning inventory
Variable manufacturing costs
Allocated fixed manufacturing costs
Less: Ending inventory
Variable cost of goods sold
Variable operating costs
Data table
Unit data:
Beginning inventory
Production
Sales
Variable costs:
Print
$
0
1,000
950
Manufacturing cost per unit produced
Operating (marketing) cost per unit sold
Fixed costs:
Manufacturing costs
380,000
380,000 $
130,000
380,000 $
130,000
Operating (marketing) costs
130,000
Note: The budgeted level of production used to calculate the budgeted fixed manufacturing cos
per unit is 1,000.
$
1,200 $
625
50
925
955
Done
20
1,300
1,220
1,200 $
625 $
1,200
625
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