For the Year Ended December 31, 20Y8 Raw Wool Wool Yarn Rug Yarn Total Company Sales $200,000 $155,000 $167,000 $522,000 Costs of goods sold: Variable costs $(48,000) $(18,600) $(37,170) $(103,770) Fixed costs (32,000) (12,400) (24,780) (69,180) Total cost of goods sold $(80,000) $(31,000) $(61,950) $(172,950) Gross profit $120,000 $124,000 $105,050 $349,050 Operating expenses: Variable expenses $(5,000) $(7,750) $(53,110) $(65,860) Fixed expenses (89,000) (78,000) (106,200) (273,200) Total operating expenses $(94,000) $(85,750) $(159,310) $(339,060) Operating income (loss) $26,000 $38,250 $(54,260) $9,990 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. If required, use a n sign to indicate loss. Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 20Y8 Continue Rug Yarn (Alternative 1) Discontinue Rug Yarn (Alternative 2) Differential Effects (Alternative 2) Revenues Costs: Variable Fixed Profit (loss) $

For the Year Ended December 31, 20Y8 Raw Wool Wool Yarn Rug Yarn Total Company Sales $200,000 $155,000 $167,000 $522,000 Costs of goods sold: Variable costs $(48,000) $(18,600) $(37,170) $(103,770) Fixed costs (32,000) (12,400) (24,780) (69,180) Total cost of goods sold $(80,000) $(31,000) $(61,950) $(172,950) Gross profit $120,000 $124,000 $105,050 $349,050 Operating expenses: Variable expenses $(5,000) $(7,750) $(53,110) $(65,860) Fixed expenses (89,000) (78,000) (106,200) (273,200) Total operating expenses $(94,000) $(85,750) $(159,310) $(339,060) Operating income (loss) $26,000 $38,250 $(54,260) $9,990 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. If required, use a n sign to indicate loss. Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 20Y8 Continue Rug Yarn (Alternative 1) Discontinue Rug Yarn (Alternative 2) Differential Effects (Alternative 2) Revenues Costs: Variable Fixed Profit (loss) $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units Units produced Units sold Sales 0 8,600 5,900 $ 767,000 $ 172,000 $ 86,000 Materials cost Variable conversion cost used Fixed manufacturing cost Indirect operating costs (fixed) $ 946,000 $ 118,000 The difference between the variable costing ending inventory and the absorption costing ending inventory is: Multiple Choice O 2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost 4 2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost plus $111.67 per unit indirect operating c 2,700 units times $105 per unit materials cost
The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000. If the ending inventory of finished goods was $30,000, the beginning inventory of finished goods must have been: a. $20,000 b. $50,000 c. $110,000 d. $150,000
Units in beginning inventory Units produced 18,000 Units sold 15,000 Units in ending inventory 3,000 Variable costs per unit: $ 120 $ 350 Direct materials Direct labor Variable manufacturing overhead $ 47 Variable selling and administrative $ 18 Fixed costs: Fixed manufacturing overhead $ 960,000 Fixed selling and administrative $ 680,000 Unit product cost Under Variable costing???
Sales Cost of goods sold Gross profit Expenses: $186,000,000 (102,000,000) $84,000,000 Selling expenses $16,000,000 Administrative expenses 5,200,000 Total expenses (21,200,000) Operating income $62,800,000 The division of costs between variable and fixed is as follows: Cost of goods sold Selling expenses Administrative expenses Variable Fixed 70% 30% 75% 25% 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $11,160,000 in yearly sales. The expansion will increase fixed costs by $3,000,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs Total fixed costs 86,000,000 ✓ 37,700,000 X 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin 86 V ✓ 100 3. Compute the break-even sales (units) for the…
The following information pertains to Morrow’s Mannequins: Manufacturing Cost $2,170,000 Unites Manufactured 32,000 Unites Sold 28,500 units sold for $90 per unit Beginning inventory 0 units What is the amount of gross margin? $270,000 $2,170,000 $1,995,000 $632,344
For the Year Ended December 31, 20Y8 Raw Wool Wool Yarn Rug Yarn Total Company Sales $210,000 $155,000 $167,000 $532,000 Costs of goods sold: Variable costs $(48,000) $(18,600) $(37,180) $(103,780) Fixed costs (32,000) (12,400) (24,800) (69,200) Total cost of goods sold $(80,000) $(31,000) $(61,980) $(172,980) Gross profit $130,000 $124,000 $105,020 $359,020 Operating expenses: Variable expenses $(5,000) $(7,750) $(53,120) $(65,870) Fixed expenses (89,000) (77,000) (106,200) (272,200) Total operating expenses $(94,000) $(84,750) $(159,320) $(338,070) Operating income (loss) $36,000 $39,250 $(54,300) $20,950 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. If required, use a minus sign to indicate a loss. Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 20Y8 Continue Rug Yarn (Alternative 1) Discontinue Rug Yarn (Alternative 2)…
Hanshaben
Full Ton Company Financial Projection for Product USA For the Year Ended December 31, 20X2 Sales (100 units at $100 a unit)... $10,000 Manufacturing cost of good sold Direct Labor. $1,500 Direct Materials Used.. 1,400 Variable Factory Overhead. Fixed Factory Overhead.. Total Manufacturing cost of goods sold Gross Profit... 1,000 500 4,400 5,600 Selling Expenses: Variable. 600 Fixed 1,000 Administrative Expenses: Variable. 500 Fixed.... 1,000 Total selling and administrative expenses Operating Income.. _3,100 $ 2,500 Required: (1) How many units of Product USA would have to be sold to break even? (2) What would the operating income be if sales increase by 25%? (3) What would be the dollar sales at the breakeven point if fixed factory overhead increases by $1,700? (AICPA adapted)
DO NOT GIVE SOLUTION IN IMAGE
Units in beginning inventory -0-Units produced 8,000Units sold 6,000 Variable costs per unit: Manufacturing $15 Selling and administrative $5 Fixed costs, in total: Manufacturing $24,000 Selling and administrative $16,000 What is the unit product cost under absorption costing?