General Accounting Question Glacier Electronics produces a single product. Variable production costsare $15 per unit, and variable selling and administrative expenses are $5per unit. Fixed manufacturing overhead totals $60,000, and fixed sellingand administration expenses total $55,000. Assuming a beginninginventory of zero, production of 6,000 units, and sales of 5,000 units,what is the dollar value of the ending inventory under variable costing?

Step 1: Definition of Ending Inventory under Variable CostingUnder Variable Costing, only variable…

Answered: Glacier Electronics produces a single…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1PB: When prices are falling (deflation), which costing method would produce the highest gross margin for...

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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.
Grainger Company produces only one product and sells that product for $100 per unit. Cost information for the product is: Selling expenses are $4 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 5,000 units; sold 4,000; and had no beginning inventory. A. Compute net income under absorption costing variable costing B. Reconcile the difference between the income under absorption and variable costing.
When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
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Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.
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The ending inventory under variable costing?
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A company produces a single product. Variable production costs are $13.50 per unit and variable selling and administrative expenses are $4.50 per unit. Fixed manufacturing overhead totals $51,000, and fixed and administrative expenses total $55,000. Assuming a beginning inventory of zero, production of 5,000 units, and sales of 4,350 units, what would be the dollar value of the ending inventory under variable costing?
A company produces a single product. Variable production costs are $13.50 per unit and variable selling and administrative expenses are $4.50 per unit. Fixed manufacturing overhead totals $51,000, and fixed and administrative expenses total $55,000. Assuming a beginning inventory of zero, production of 5,000 units, and sales of 4,350 units, what would be the dollar value of the ending inventory under variable costing?(general account)

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