​Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable​ costing, ________.   A. its operating income will be the same as under absorption costing   B. its operating income for the period will be lower than under absorption costing   C. its operating income for the period will be higher than under absorption costing   D. its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing

Q: Which formula reconciles the difference between absorption and variable-costing income?

A: In case of variable costing, only variable cost would be considered as product costs and fixed costs…

Q: The following information are available for X Corp: (The company uses actual costing). What is the…

A: Beginning inventory for 2020 is equal to ending inventory of 2019. Sales = opening inventory +…

Q: Abdulwahab Corporation is estimating the cost function for total cost of production of product A…

A: Variable cost is the cost which changes with change in production volume and fixed cost is the cost…

Q: Assume that the company expects sales of each product to increase to 56,000 units next year with no…

A: Introduction:- CVP analysis is used to identify the changes in costs and volume affect a…

Q: man either find a way to lower costs or deter roduction report will help them see how mu can…

A: A production cost report assigns cost to the units transferred completed and ending inventory. It…

Q: Blueberry Company reports the following information: Direct Materials $10 / unit Direct Labor $20 /…

A: Solution: Computation of Unit Product Cost - Absorption Costing Particulars Per unit Unit…

Q: The Sou ion manufactures a single product and has the following cost Variable costs per unit:…

A: Lets understand the basics.Product cost can be calculated using,(1) Variable costing (2) Absorption…

Q: Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively.…

A: Contribution margin = Selling price per unit - Variable cost per unit. Total contribution margin =…

Q: Gloria’s a food manufacturer is trying to make an assessment of its operations for the past year.…

A: In management accounting, variances can be defined as the difference between the actual amount and…

Q: If a company produces 10,000 units and sells 8,000 units during a period, which method of computing…

A: The method of computing operating income that will result in a higher operating income will depend…

Q: How many units did it produce?

A: Given that: EKP’s unit production cost under variable costing is $5, and $8 under absorption…

Q: X corporation produces a decorative pillow. In 2020, it produced 2,000 units a 1,750 at an average…

A: The income statement can be prepared using various methods as variable costing and absorption…

Q: Kenmore Company manufactures two products. Both products have the same sales​ price, and the volume…

A: (10). Expected decrease in revenue ($75,000) Expected decrease in total variable costs 64,250…

Q: Wildhorse sells two products: Standard and Deluxe. The company had sales of $822000 during the…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Gibson Company produces a product that sells for $29 per unit and has a variable cost of $11 per…

A: Break-even point is the point of sales at which no gain or loss is incurred by the company.

Q: Prepare a variable costing-based income statement for each year. Explain the variation in variable…

A: calculation of contribution margin per unit: Selling price per unit - variable price per unit = 80 -…

Q: Annual Costs of Operating Each Product Line Sales in units Sales in dollars Unit-level costs: Cost…

A: Product-line earnings statement represents a summary of earnings and costs of each product line run…

Q: Riders Company computes net operating income under both the absorption costing approach and the…

A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

Q: Lia Corporation manufactures and sells a spice rack. Shown below are the actual operating results…

A: Net operating income in variable costing is the difference between absorption costing net income and…

Q: Bent Tree incurred the following unit costs during the year: variable manufacturing cost, $27; fixed…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Landow Company uses variable costing for internal purposes and wants to restate income to that of…

A: Income under absorption costing is a method of calculating a company's income or profit that…

Q: facturing costs per unit and administrative expenses per unit turing overhead (in total) nd…

A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…

Q: Freshmart Inc. began operations last year when it produced and sold the same nuber of units. This…

A: Fixed overhead cost for 750 units = ($30,000 / 1,000) x 750 = $22,500

Q: GL produces and sells single product with a standard quality. An analysis of its costing records…

A: Break-even point in units:= Fixed cost / (Selling price per unit - Variable cost per unit)= 120,000…

Q: 2. Using the contribution approach for analyzing segment profitability and assuming all else remains…

A: Given in the question: The west region of the company has been dropped by the company which will…

Q: Edifice Manufacturing Company produces and sells a single product. During the current year,…

A: Absorption and variable costing are two methods that are generally used by an organization to value…

Q: Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: If Lean production has been in use during 2020 and 2021, and the pre-determined overhead absorption…

A: Variable costing is a way of simply allocating variable costs to inventories. All overhead…

Q: Dowell Company produces a single product. Its income statements under absorption costing for its…

A: The income statement can be prepared using different methods as variable and absorption costing.…

Q: Answer the following question(s) using the information below. Jeppson Company manufactures computer…

A: Variable cost is that which vary according to the level of production.

Q: Dambo Limited has prepared the following cost analysis for 6 months of trading. Sales (units) 2 500…

A: As posted multiple sub parts we are answering only first three sub parts  kindly repost the…

Q: Novak Centre Inc. sells Frisbees. In 2022, the company produced 3,070,000 units but sold only…

A: The income statement tells about the profitability of the business for the current period. The…

Q: Rooney Company produces a product that sells for $36 per unit and has a variable cost of $12 per…

A: The break-even sales are calculated as the fixed costs divided by the contribution margin ratio. The…

Q: Blossom Company reports the following operating results for the month of August: sales $300,000…

A: Cost, volume, and, profit analysis:Cost, volume, and, profit analysis (CVP) analysis refers to the…

Q: Calculate the net profit before the introduction of Product C . Calculate the net profit if…

A: Lets understand the basics.Contribution margin is the margin that contributes towards fixed cost and…

Q: Bent Tree incurred the following unit costs during the year: variable manufacturing cost, $27; fixed…

A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

Q: Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the…

A:

Q: Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During…

A: In August (highest level of activity) = 45,500 labor hours and had a total cost of $121,450 In…

Q: The following information is for a company that produced 10,000 units and sold 9,0000 units during…

A: Solution: The difference in variable cost and absorption is that of treatment of fixed manufacturing…

Q: price

A: Fixed Overhead Rate6.35Variable Overhead Rate1.8Total Overhead Rate8.15

Q: Skysong Inc. reports the following pretax income (loss) for both financial reporting purposes and…

A:

Q: 1. What was last year's break-even point and margin of safety in euro and units? 2. Assuming Maximin…

A: Last year’s break-even point and margin of safety in euro and units:For the Max product:Break-even…

Q: Mazoon Company decided to use the high- low cost estimation method to analyze its mixed costs.…

A: Under high low method the highest activity cost and quantity is differentiated with the lowest…

Q: Oriole Industries production division reported a net operating loss of $516000 in 2021. Included in…

A: Division segment margin can be calculated by deducting the net operating loss from the common fixed…

Q: Required: A. Calculate the variable and fixed components of the utilities cost. B. Using the data…

A: Variable costs: Variable costs are those costs which change in proportion to change in the…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.