For the year, the following data are available:Budgeted productionActual production36,000 units30,000 units28,000 unitsP1,000SalesFinished goods inventory, January 1Unfavorable variances from standardvariable manufacturing costsP5,000All variances are written off directly at year-end as an adjustment to Cost ofGoods Sold.Required:1. Prepare the income statement under the direct costing method.2. Prepare the income statement under the absorption costing method. Problem 2The Honey Company is comparing its present absorption costing practiceswith direct costing methods. An examination of its records produced thefollowing information:Maximum plant capacityNormal capacityFixed factory overheadFixed marketing and administrative expenseSales price per unitStandard variable manufacturing cost per unitVariable marketing expense per unit sold40,000 units36,000 unitsP54,000P20,00010P1

Name: For the year, the following data are available:Budgeted productionAct
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: For the year, the following data are available:Budgeted productionActual production36,000 units30,000 units28,000 unitsP1,000SalesFinished goods inventory, January 1Unfavorable variances from standardvariable manufacturing costsP5,000All variances a

Under Direct costing method, the fixed production costs are treated as period cost and not included…

Business

Accounting

For the year, the following data are available: Budgeted production Actual production Sales Finished goods inventory, January 1 Unfavorable variances from standard variable manufacturing costs 36,000 units 30,000 units 28,000 units P1,000 P5,000 All variances are written off directly at year-end as an adjustment to Cost of Goods Sold. Required: 1. Prepare the income statement under the direct costing method. 2. Prepare the income statement under the absorption costing method.

For the year, the following data are available: Budgeted production Actual production Sales Finished goods inventory, January 1 Unfavorable variances from standard variable manufacturing costs 36,000 units 30,000 units 28,000 units P1,000 P5,000 All variances are written off directly at year-end as an adjustment to Cost of Goods Sold. Required: 1. Prepare the income statement under the direct costing method. 2. Prepare the income statement under the absorption costing method.

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

Budget Performance Report Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost per 100 Two-Liter Cost Category Direct labor Direct materials Factory overhead Total At the beginning of March, Salisbury's management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: Actual Cost for the Month Ended March 31 Cost Category Direct labor Direct materials Factory overhead Total Bottles $1.20 6.50 1.80 $9.50 Manufacturing costs: Direct labor Direct materials Factory overhead Total a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. Salisbury Bottle Company Manufacturing Cost Budget For the Month Ended March 31 $6,550 33,800 9,100 $49,450 $ Standard Cost at Planned…
Please do not give solution in image format thanku
Dickinsen Company gathered the following data for December: Planned Actual Sales price per unit Number of units of sales $5.80 x 820,000 $4,756,000 $6.00 x 805,000 $4,830,000 Total sales a. Compute the revenue price variance. b. Compute the revenue volume variance. c. Compute the total revenue variance.
Amada Company's standard cost system reports this information from its December operations. Standard direct materials cost Direct materials quantity variance Direct materials price variance Actual direct labor cost Direct labor efficiency variance Direct labor rate variance Actual overhead cost Volume variance Controllable variance View transaction list Journal entry worksheet 1 Required: 1. Prepare December 31 journal entries to record the company's costs and variances for the month for (a) direct materials, (b) direct labor, and (c) overhead. Ignore the journal entry to close the variances. 2 3 Record direct materials costs and variances. Date December 31 Note: Enter debits before credits. $ 100,000 General Journal 3,000 U 500 F 90,000 7,000 F 1,200 U 375,000 12,000 U 9,000 U Debit Credit >
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,100) Wages and salaries ($2,500 + $0.35q) Shipping ($0.60q) Utilities ($1,210) For the Month Ended August 31 Other ($400 + $0.019) Total expenses Net operating income Actual pounds Revenue The actual results for August were as follows: Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income 7,300 $ 30,295 2,555 3,100 5,055 4,380 1,210 473 16,773 $ 13,522 7,300 $ 26,600 2,725 2,960 5,465 4,110 1,020 1,093 17,373 $ 9,227
Accounting Capstone - Budget Performace Variance Report
Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Direct Materials Price Debit Credit Variance $1,000 Direct Materials Quantity $2,000 Variance $500 Direct Labor Rate Variance $3,000 Direct Labor Efficiency Variance Unadjusted Cost of Goods Sold equals $200,000. Which of the following would be FALSE when the year-end closing entry is made? O The Cost of Goods Sold account will be debited. O Adjusted Cost of Goods Sold will be $198,500. The Direct Labor Rate Variance account will be debited. O The Direct Materials Price Variance account will be credited.
Find the values of the missing items. Assume that the actual sales volume equals actual production volume. (There are no inventory level changes.) (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Sales revenue Variable manufacturing costs Variable marketing and administrative costs Contribution margin Reported Income Statement (2,600 units) $ 132,600 $ 85,000 Manufacturing Variance $ 4,420 F Marketing and Administrative Variance Sales Price Variance Flexible Budget Sales Activity (2,600 Variance units) $ 143,000 1,520 F Master Budget (2,700 units) 16,200
H
ty Variance OF Master Budget (19,200 units) 57,600
Opal Manufacturing Company established the following standard price and cost information: Sales price $70 per unit 52 per unit Variable manufacturing cost Fixed manufacturing cost $ 120,000 total $50,000 total Fixed selling and administrative cost Opal expected to produce and sell 29,000 units. Actual production and sales amounted to 32,500 units. Required: a. and b. Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost, fixed manufacturing cost, and fixed selling and administrative cost. Classify the variances as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "Favorable", "Unfavorable", and "None" for no effect (i.e., zero variance). Units Static Budget Flexible Budget Volume Variance Favorable or Unfavorable
Please help me