Please do not give solution in image format thanku Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating toMarch, April and May 2021 are as follows:MonthMarchAprilMay(a)Beginning ProductionInventory0600600Other related actual data:3,0002,6003,300Manufacturing cost per unit producedMarketing cost per unit sold .....REQUIRED:Sales2,4002,6003,450Fixed Manufacturing costs per month .....Fixed Operating & marketing costs per month....Selling price per unit........$550$200The budgeted level of production used to calculate the predetermined fixed manufacturing costper unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change inproduction volume is charged to the cost of goods sold of the month it occurs. Assume there isno other variances related to fixed manufacturing.$320,000$95,000$1,700Prepare income statements for Haitek in March, April and May 2021 under(i) variable costing(ii)absorption costing

S.NoMarginal CostingAbsorption Costing1As the name suggest itself variable cost is considered in…

Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows: Production Month March April May Beginning Inventory 0 Other related actual data: 600 600 Manufacturing cost per unit produced. Marketing cost per unit sold........ REQUIRED: 3,000 2,600 3,300 (i) (ii) Sales 2,400 2,600 3,450 Fixed Manufacturing costs per month $320,000 Fixed Operating & marketing costs per month.... $95,000 Selling price per unit.......... $1,700 $550 $200 The budgeted level of production used to calculate the predetermined fixed manufacturing cost per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in production volume is charged to the cost of goods sold of the month it occurs. Assume there is no other variances related to fixed manufacturing. (a) Prepare income statements for Haitek in March, April and May 2021 under variable costing absorption costing

Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows: Production Month March April May Beginning Inventory 0 Other related actual data: 600 600 Manufacturing cost per unit produced. Marketing cost per unit sold........ REQUIRED: 3,000 2,600 3,300 (i) (ii) Sales 2,400 2,600 3,450 Fixed Manufacturing costs per month $320,000 Fixed Operating & marketing costs per month.... $95,000 Selling price per unit.......... $1,700 $550 $200 The budgeted level of production used to calculate the predetermined fixed manufacturing cost per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in production volume is charged to the cost of goods sold of the month it occurs. Assume there is no other variances related to fixed manufacturing. (a) Prepare income statements for Haitek in March, April and May 2021 under variable costing absorption costing

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

See similar textbooks

Similar questions

Aero Aluminum Inc. uses a process cost system. The records for May show the following information: Using the data in P5-9, draft the journal entries to record: 1. The cost of goods received from Rolling during the month. 2. The production costs incurred in Converting during the month. 3. The cost of goods completed and transferred to finished goods during the month.
Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Last month, 4,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. 2. What is the total product cost for last month? 3. What is the unit product cost for last month?
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Kokomo Kayak Inc. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during the month of March: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 18,000 units finished and transferred to stockroom. Work in process, end of period, 3,000 units, two-thirds completed. Required: Prepare a cost of production summary for March.
On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and sold 12,000 units. The following income statement was prepared, based on the variable costing concept: Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
Absorption and variable costing income statements for two months and analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 6,400 hats, of which 5,200 were sold. Operating data for the month are summarized as follows: During August, Head Gear Inc. manufactured 4,000 hats and sold 5,200 hats. Operating data for August are summarized as follows: Instructions 1. Using the absorption costing concept, prepare income statements for (a) July and (b) August. 2. Using the variable costing concept, prepare income statements for (a) July and (b) August. 3. A. Explain the reason for the differences in the amount of operating income in (1) and (2) for July. B. Explain the reason for the differences in the amount of operating income in (1) and (2) for August. 4. Based on your answers to (1) and (2), did Head Gear Inc. operate more profitably in July or in August? Explain.
Variable costing Marley Company has the following information for March: Determine (A) the manufacturing margin, (B) the contribution margin, and (C) operating income for Marley Company for the month of March.
Men of Culture Company has a process cost system and uses the weighted-average method. The following information is applicable for the month of September. (refer to image) Base on this information, the cost of the units completed is: a. P135,000 b. P113,600 c. P107,800 d. P120,250 e. Some other answer The cost of the ending WIP inventory is a. P27,200 b. P39,200 c. P21,400 d. P32,400 e. Some other answer
Selected cost data for Classic Print Co. are as follows: Estimated manufacturing overhead cost for the year $ 125,000 Estimated direct labor cost for the year 78,125 Actual manufacturing overhead cost for the year 116,000 Actual direct labor cost for the year 67,000 Requirements4 Marks 1.Compute the predetermined overhead allocation rate per direct labor dollar. 2.Prepare the journal entry to allocate overhead costs for the year. 3.Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead. 4.Prepare the journal entry to adjust for the underallocatedor overallocated manufacturing overhead.
Prepare a schedule of cost of goods manufactured for the year ended June 30, 2021, clearly showing total manufacturing cost & total manufacturing costs to account for and Prepare an income statement for Regional Safety Supplies for the year ended June 30, 2021. List the non-manufacturing overheads in order of size starting with the largest. What is the selling price per mask if Regional Safety Supplies manufactured 1,850 masks for the period under review and uses a mark-up of 25% on cost?