Foggs Corporation has provided the following data for its two most recent years of operation:Manufacturing costs:Variable manufacturing cost per unit produced:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead per yearSelling and administrative expenses:Variable selling and administrative expense per unit soldFixed selling and administrative expense per yearYear 21,000Year 1Units in beginning inventory 0$21.00$67.00$ 10$6$5$ 520,000$6$ 63,000Units produced during the year 10,00013,000Units sold during the year 9,000 11,000Units in ending inventory 1,000 3,000The unit product cost under absorption costing in Year 2 is closest to:Multiple Choice$40.00

ABSORPTION COSTING Absorption costing considers direct materials, direct labor, variable…

Foggs Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold $6 Fixed selling and administrative expense per year $ 63,000 Year 2 1,000 Year 1 Units in beginning inventory 0 Units produced during the year 10,000 13,000 Units sold during the year 9,000 11,000 Units in ending inventory 1,000 3,000 $ 10 $6 $5 $ 520,000 $21.00 $67.00 The unit product cost under absorption costing in Year 2 is closest to: Multiple Choice $40.00

Foggs Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold $6 Fixed selling and administrative expense per year $ 63,000 Year 2 1,000 Year 1 Units in beginning inventory 0 Units produced during the year 10,000 13,000 Units sold during the year 9,000 11,000 Units in ending inventory 1,000 3,000 $ 10 $6 $5 $ 520,000 $21.00 $67.00 The unit product cost under absorption costing in Year 2 is closest to: Multiple Choice $40.00

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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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.
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. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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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 Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
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Russell Corporation has provided the following data for its two most recent years of operation: Selling price per unit Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory $102,000 $125,000 $86,000 $ $ $ $ $153,000 $ $ Year 1 0 11,000 8,000 3,000 The net operating income (loss) under absorption costing in Year 1'is closest to: 70 14 6 2 264,000 74,000 Year 2 4 3,000 12,000 14,000 1,000