Solve it in short answer Financial Account. - Craft Company produces a single product. Last year,the company had a net operating income of $100,000 using absorptioncosting and $84,000 using variable costing. The fixed manufacturingoverhead cost was $10 per unit. There were no beginning inventories. If24,800 units were produced last year, then sales last year were:a. 8,800 unitsb. 26,400 unitsc. 23,200 unitsd. 40,800 units

To determine the sales last year, we need to reconcile the difference between absorption costing and…

Answered: Financial Account. - Craft Company…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Similar questions

A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Please
O company produces a single product. Last year, the company had a net operating income of P92,000 using absorption costing and a net operating income of P98,600 using variable costing. If the fixed manufacturing overhead cost was P3.00 per unit for the last two years, and if production was 18,000 units, then sales in units last year were a. 24,600 b. 20,200 c. 15,800 d. 15,000
I want the correct answer with help
Subject :- Accounting
Croft Corporation produces a single product. Last year, the company had a net operating income of $99,000 using absorption costing and $84,300 using variable costing. The fixed manufacturing overhead cost was $10 per unit. There were no beginning inventories. If 22,900 units were produced last year, then sales last year were: Multiple Choice 8.200 units 21.430 units 24,370 units 37,600 units
Po.25.
Assume that Bisque Co. sold 12,000 units of Product A and 18,000 units of Product B in the last year. The unit contribution margins for Products A and B are $10 and $20 respectively. Bisque has fixed costs of $640,000. The break-even point in units is _____. a. 26,000 units b. 16,000 units c. 27,500 units d. 40,000 units
The following information is available for SAN JOSE CORP.'s new product line: Sale price per unit Variable manufacturing cost per unit of production Total annual fixed manufacturing cost Variable administrative cost per unit Total annual fixed administrative expenses There was no inventory at the beginning of the year. Normal capacity is 12,500 units. During the year, 12,000 units were produced and 10,000 units were sold. REQUIREMENTS: (1) 6 P 30 8. 25,000 15,000 What is the cost of ending inventory under direct costing and absorption costing, respectively? (2) What is the net income under direct costing and absorption costing, respectively?

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