Gardner company produces plastic that is used for injection solve this question ❓ Gardner Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2013,the first year of operations, Gardner produced 4,000 tons ofplastic and sold 2,500 tons. In 2014, the company produced thesame amount of plastic and sales were 5,500 (the company soldall of its inventory). In each year, the selling price per ton was$2,000, variable manufacturing costs were $400, and variableselling expenses were $600 for each ton of plastic sold. Fixedmanufacturing costs were $2,000,000, and fixed administrativeexpenses were $500,000.What is the unit manufacturing cost under absorption costingin year 2013?

Given: 2013 Production = 4,000 tons2013 Sales = 2,500 tons Calculating the Absorption CostSolving…

Answered: Gardner Company produces plastic that…

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

LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240 hoverboards. During the year, it produced 1,200 boards and sold 1,300 for $800 each. Fixed production costs were $319,000, and variable production costs were $375 per unit. Fixed advertising, marketing, and other general and administrative expenses were $150,000, and variable shipping costs were $20 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost. Q. The company that supplies LLAP with its specialized impact-resistant material has announced a price increase of $20 for each board. What effect would this have on the breakeven points previously calculated in requirement 3?
LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240 hoverboards. During the year, it produced 1,200 boards and sold 1,300 for $800 each. Fixed production costs were $319,000, and variable production costs were $375 per unit. Fixed advertising, marketing, and other general and administrative expenses were $150,000, and variable shipping costs were $20 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost. Q. Compute the breakeven point in units sold assuming LLAP uses the following: a. Variable costing b. Absorption costing (Production = 1,200 boards)
LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240 hoverboards. During the year, it produced 1,200 boards and sold 1,300 for $800 each. Fixed production costs were $319,000, and variable production costs were $375 per unit. Fixed advertising, marketing, and other general and administrative expenses were $150,000, and variable shipping costs were $20 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost. Q. Assume that $44,000 of fixed administrative costs were reclassified as fixed production costs. Would this reclassification affect the breakeven point using variable costing? What if absorption costing were used? Explain
Olson manufactures a single product and sells it for $10 per unit. At the beginning of the year there were 1,000 units in inventory. Upon further investigation, you discover that units produced last year had $3.00 of fixed manufacturing cost and $2.00 of variable manufacturing cost. During the year Olson produced 10,000 units of product. Each unit produced generated $3.00 of variable manufacturing cost. Total fixed manufacturing cost for the current year was $40,000. There were no inventories at the end of the year. This current year Absorption Costing Net Income is Select one: a. $36,000 b. $35,000 c. $37,000 d. $38,000
Jordon Company produced and sold 50,000 units in 2014. The units sold for $140 each. During the period, the following cost were incurred. Variable selling and administrative expenses per unit Variable manufacturing overhead per unit Direct labor per unit $ 15 20 30 Direct materials per unit 25 Fixed selling and administrative expenses $ 5,50,000 Fixed manufacturing overhead 6,50,000 Tax rate is 40%. Calculate the gross margin per unit for Jordon Company.
Jane Company started its operations at the beginning of 2016. The production and sales data of for the year 2016 wvere as follows: Variable costs per unit: • Direct materials: $20 • Direct labor: $10 • Variable manufacturing overhead: $4 Variable selling and administrative expenses: $8 Fixed costs per year: • Fixed manufacturing overhead: $180,000 • Fixed selling and administrative expenses: $600,000 During the year 2016, Jane Company manufactured 30,000 units out of which 22.000 units were sold. What is the cost of goods sold using absorption costing? (DO NOT USE COMMAS OR ANY SYMBOLS)
Cell Peak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $21, direct labor of $10, packaging costs of $7 and variable overheads of $2. Cell Peak has fixed overheads of $259124 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would CellPeak make if the company sold 18,000 shelving units?
Malburn Construction Ltd. Manufactures and distributes window frames. The company uses 600,000metal strips in producing the frames for the year. Each strip cost $15, the storage cost is 10% of the costprice and $180 is required to make an order.(i). Find the order size Malburn Construction needs to minimize its inventory costs. Calculate for the company:(ii). the number of orders placed per year. (iii).the length of the stock cycle in days. (iv). the annual ordering cost (v). the annual holding cost (vi). the total annual cost
Time Again, LLC produces and sells a mantel clock for $100 per unit. In 2017, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:Direct materials $43 per unitDirect manufacturing labor $5 per unitVariable manufacturing costs $3.50 per unitSales commissions $14.50 per partFixed manufacturing costs $65.00 per unitAdministrative expenses, all fixed $37.50 per unitWhat is the inventoriable cost per unit using variable costing? A) $66.00B) $51.50C) $48.00D) $103.50
Jaroni Inc. produces specialty quilts and blankets using a partly manual, partly automated manufacturing process. Total sales for the previous period were $60,000. Wages, materials, and variable manufacturing overhead totaled $10,200. Salaries, depreciation, rent, and other fixed expenses amounted to $14,940. Jaroni charges $500 per customized blanket.What is Jaroni's break-even point in Sales Dollars?
Blossom Motors is a division of Blossom Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 180,000 units for $8.00 per unit. Donna Clark is the division manager. She is considering producing either 180,000 or 280,000 units during the period. Other information is as follows: Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 180,000 units Based on 280,000 units Manufacturing cost per unit Based on 180,000 units (a) Based on 280,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) - Your answer is partially correct. Units produced Units sold (b) Sales Less Prepare an absorption-costing income statement, with one column showing the results if 180,000 units are produced and one column showing…
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball Is manufactured In a small plant that relles heavly on direct labor workers. Thus, varlable expenses are high, totallng $15.00 per ball, of which 60% Is direct labor cost. Last year, the company sold 58,000 of these balls, with the following results: $ 1,450,000 Sales (58,800 balls) variable expenses Contribution margin Fixed expenses 870,000 580,000 374,000 Net operating income 206,000 Required: 1. Compute (a) last year's CM ratio and the break-even polnt in balls, and (b) the degree of operating leverage at last year's sales level. 2. Due to an Increase in labor rates, the company estimates that next year's varlable expenses will Increase by $3.00 per ball. If this change takes place and the selling price per ball remalns constant at $25.00, what will be next year's CM ratio and the break-even polnt in balls? 3. Refer to the data in (2) above. If the expected change in varlable…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS