Gammaro Company uses standard cost- ing. Tim Sweeney, the new president of Gammaro Company, is presented with the following data for 2017: Home Insert Page Layout Formulas Data Review View Gammaro Company Income Statements for the Year Ended December 31, 2017 Variable Costing $9,350,000 4,695,000 1,350,000 Absorption Costing $9.350,000 5,855,000 5 Revenues 6 Cost of goods sold (at standard costs) 7 Fixed manufacturing overhead (budgeted) 8 Fixed manufacturing overhead variances (all unfavorable): 9 Spending 10 Production volume 11 Total marketing and administrative costs (all fixed) 12 Total costs 13 Operating income 125,000 125,000 405,000 1,570,000 7,955,000 $1,395,000 1,570,000 7.740,000 $1,610,000 14 15 Inventories (at standard costs) 16 December 31, 2016 17 December 31, 2017 $1,345,000 45,000 $1,730,000 215,000

Gammaro Company uses standard cost- ing. Tim Sweeney, the new president of Gammaro Company, is presented with the following data for 2017: Home Insert Page Layout Formulas Data Review View Gammaro Company Income Statements for the Year Ended December 31, 2017 Variable Costing $9,350,000 4,695,000 1,350,000 Absorption Costing $9.350,000 5,855,000 5 Revenues 6 Cost of goods sold (at standard costs) 7 Fixed manufacturing overhead (budgeted) 8 Fixed manufacturing overhead variances (all unfavorable): 9 Spending 10 Production volume 11 Total marketing and administrative costs (all fixed) 12 Total costs 13 Operating income 125,000 125,000 405,000 1,570,000 7,955,000 $1,395,000 1,570,000 7.740,000 $1,610,000 14 15 Inventories (at standard costs) 16 December 31, 2016 17 December 31, 2017 $1,345,000 45,000 $1,730,000 215,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

How much fixed manufacturing overhead was included in the 2016 and the 2017 ending inventory under absorption costing?

Gammaro Company uses standard cost-
ing. Tim Sweeney, the new president of Gammaro Company, is presented with the following data for 2017:
Home
Insert
Page Layout
Formulas
Data
Review
View
Gammaro Company
Income Statements for the Year Ended December 31, 2017
Variable
Costing
$9,350,000
4,695,000
1,350,000
Absorption
Costing
$9.350,000
5,855,000
5 Revenues
6 Cost of goods sold (at standard costs)
7 Fixed manufacturing overhead (budgeted)
8 Fixed manufacturing overhead variances (all unfavorable):
9 Spending
10 Production volume
11 Total marketing and administrative costs (all fixed)
12 Total costs
13 Operating income
125,000
125,000
405,000
1,570,000
7,955,000
$1,395,000
1,570,000
7.740,000
$1,610,000
14
15 Inventories (at standard costs)
16 December 31, 2016
17 December 31, 2017
$1,345,000
45,000
$1,730,000
215,000

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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Complete the information in the cost computations shown here: Raw materials Beginning inventory Purchases Materials available for use Ending inventory Materials used in production Work in process inventory Beginning inventory Materials used in production Direct labor Overhead applied Manufacturing costs incurred Ending inventory Cost of goods manufactured Finished goods inventory Beginning inventory Cost of goods manufactured Goods available for sale Ending inventory Cost of goods sold $341 1,533 323 $931 1,536 $22,450 936 $25,008 $21,792
Ef 13.
e. What was the Work-in-Process f. What was the Work-in-Process Inventory on November 1? Inventory on November 30?
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Justine Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a beginning balance of $17,000 and an ending balance of $12,000. During the year, the company purchased $55,000 of direct materials. Direct labor for the year totaled $121,000, while manufacturing overhead amounted to $151,000. The Work in Process Inventory account had a beginning balance of $22,000 and an ending balance of $21,000. Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. (Hint: The first step is to calculate the direct materials used during the year.) ~