Account expert solve this Haigwood Company has 120 units in the FinishedGoods Inventory at the beginning of theaccounting period. During the accounting period,Haigwood produced 190 units and sold 310 unitsfor $180 each. All units incurred $90 in variablemanufacturing costs and $16 in fixedmanufacturing costs. Haigwood also incurred$7,400 in Selling and Administrative Costs, allfixed.A. Calculate the operating income for the yearusing absorption costing and variable costing.B. Calculate the total product cost per unitproduced under absorption costing and undervariable costing.

Detailed explanation:A. Absorption Costing and Variable Costing Operating IncomeAbsorption Costing…

Answered: Haigwood Company has 120 units in the…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 1CP

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.
Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for 52 each. The actual unit cost is as follows: The selling expenses consisted of a commission of 1.30 per unit sold and advertising copayments totaling 95,000. Administrative expenses, all fixed, equaled 183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 132,600 for 3,400 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. 2. Prepare a cost of goods sold statement. 3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that 8,500 million of cost of goods sold and 4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Also, assume that 30% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. Round numbers to nearest million.
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
Helza manufacturing provided that for last year, cost of goods sold is 565, 000, factory overhead is applied on the basis of 80% of direct labor cost. Material used during the process is 115,000. The following addition information is as under:Opening Ending Inventory InventoryDirect material 25,000 35,000 Work in Process 30,000 40,000Finished goods 35,000 25,000During the period the following expenses incurred:Depreciation of Plant and Machinery 82,000Security charges of factory 20,000Fuel and power 110,000Charge FoH under or over applied to entire productionRequired: Complete cost of goods sold statement?
Cavy Company completed 7,770 units during the year at a cost of $590,520. The beginning finished goods inventory was 1,710 units valued at $121,410. Assuming a FIFO cost flow, determine the cost of goods sold for 7,020 units.$fill in the blank 1
Cavy Company completed 10,020 units during the year at a cost of $771,540. The beginning finished goods inventory was 2,200 units valued at $158,400. Determine the cost of goods sold for 9,040 units, assuming a FIFO cost flow.
X Inc. is a manufacturing company using the perpetual system. The beginning inventory of materials totaled P 150,000 & all debits to "materials account" amounted to P 400,000. The excess of beginning inventory over its ending inventory is P 60, 000. Conversion cost is 100,000. WIP inventory increased by 5,000 while Finished Goods inventory decreased by 3,000. GP rate is 30% based on cost. Compute the gross profit

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