Galino Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price. Units in beginning inventory. Units produced. Units sold. Units in ending inventory. Variable costs per unit: Direct materials. Direct labor........... Variable manufacturing overhead. Variable selling and administrative Fixed costs: Fixed manufacturing overhead. Fixed selling and administrative $99 0 2,900 2,600 300 $27 $11 $6 $7 $104,400 $13,000 109. What is the total period cost for the month under the absorption costing approach? A. $104.400 B. $31,200 C. $13,000 D. $135,600

Galino Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price. Units in beginning inventory. Units produced. Units sold. Units in ending inventory. Variable costs per unit: Direct materials. Direct labor........... Variable manufacturing overhead. Variable selling and administrative Fixed costs: Fixed manufacturing overhead. Fixed selling and administrative $99 0 2,900 2,600 300 $27 $11 $6 $7 $104,400 $13,000 109. What is the total period cost for the month under the absorption costing approach? A. $104.400 B. $31,200 C. $13,000 D. $135,600

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4E: On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and...

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The following information pertains to Vladamir, Inc., for last year: There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is 29. Prepare an income statement using (a) variable costing and (b) absorption costing.
WorrelCorporation manufactures avariety of products. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year............P71,000 Variable costing net operating income, this year............P92,000 Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year..............P2,000 Fixed manufacturing overhead costs released from inventory under absorption costing, this year..............P11,000 Required: a.Determine the absorption costing net operating income last year. b.Determine the absorption costing net operating income this year.
182. Leigh Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory. Units produced. Units sold. Units in ending inventory. Variable costs per unit: Direct materials. Direct labor Variable manufacturing overhead.. Variable selling and administrative.......... Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative.... $100 300 1,200 1,400 100 $17 $59 $4 $8 $9,600 $1,400 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing?
1. Cabaret Corporation produces a single product. Data concerning the company's operations last year appear below: Units in beginning inventory... Units produced. Units sold....... Selling price per unit.. Variable costs per unit: Direct materials. Direct labor. Variable manufacturing overhead.. Variable selling and administrative. Fixed costs in total: Fixed manufacturing overhead... Fixed selling and administrative... Assume direct labor is a variable cost. 10,000 9,000 $60 $15 $5 $2 $4 $200,00 0 $70,000 Required: a. Compute the unit product cost under both absorption and variable costing. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
DeAnne Company produces a single product. The company's variable costing income statement for August appears below: DeAnne Company Income Statement For the month ended August 31 Sales ($15 per unit). Variable expenses: Variable cost of goods sold. Variable selling expense Total variable expenses.. Contribution margin. Fixed expenses: Fixed manufacturing. Fixed selling and administrative. Total fixed expenses....... Net operating income. ****************** $600.000 360,000 80,000 440,000 160,000 105,000 35,000 140,000 $ 20,000 The company produced 35,000 units in August and the beginning inventory consisted of 8,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. 102. The value of the company's inventory on August 31 under the absorption costing method is: A. $27,000 B. $42,000 C. $36.000 D. $47,000
Refer to the data in Exercise 6–1 for Ida Sidha Karya Company. The absorption costing income statement prepared by the company’s accountant for last year appears as shown: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 191,250Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,500Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,750Selling and administrative expense . . . . . . . . . . . . . 24,500Net operating income . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,250 Required:1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company’s inventory at the end of last year?2. Prepare an income statement for last year using variable costing. Explain the difference in net operating income between the two costing methods.
SIM Company has computed the following unit costs for the year just ended: Direct material used Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative cost Fixed selling and administrative cost $10 15 20 29 10 17 What is the unit cost of the company's inventory under variable costing?
Jarvix Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price... $111 Units in beginning inventory Units produced... Units sold. .. Units in ending inventory 400 8,800 8,900 300 Variable costs per unit: Direct materials Direct labor.... Variable manufacturing overhead.... Variable selling and administrative... $34 $37 $3 $9 ...*. ***** Fixed costs: Fixed manufacturing overhead Fixed selling and administrative.... $61,600 $169,100 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. A. What is the net operating income for the month under variable costing? B. What is the net operating income for the month under absorption costing?
You have been provided the following data relating to Milestone Ltd.: Particulars Selling Price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per Unit: Direct Material Direct Labor Variable manufacturing overhead Variable selling and administrative overhead Fixed Costs: Fixed manufacturing overhead Fixed selling and administartive Amount S S S S S S S 195 2,120 1,550 570 250 92 am 35 13 7 29,680 29,450 Calculate the total period cost for the month under variable costing method. a. Total period cost under the variable costing is $62,580 b. Total period cost under the variable costing is $69,980 c. Total period cost under the variable costing is $83,900 d. Total period cost under the variable costing is $50,350
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense The total gross margin for the month under absorption costing is: $ $ $ $ $ 153 0 2,940 2,900 40 49 16 16 17 $97,020 $40,600
Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Multiple Choice Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the unit product cost for the month under variable costing? $104 per unit $79 per unit $ 115 0 $88 per unit 6,600 6,400 200 $95 per unit $26 $46 $ 7 $9 $ 105,600 51,200
Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units Units produced Units sold Ending balance, in units Production costs: Variable manufacturing costs per unit Total fixed manufacturing costs What is the unit product cost for the year using absorption costing? OA. $117 630 1,400 1,500 530 $50 $42,000 W