Horizon Enterprises reports the following information for June: Description Amount Sales $1,200,000 Fixed cost of goods sold Variable cost of goods sold Fixed selling and administrative costs $150,000 $360,000 $140,000 Variable selling and administrative costs $180,000 Calculate the operating income for June under absorption costing: a. $650,000 b. $370,000 c. $470,000 d. $520,000

Horizon Enterprises reports the following information for June: Description Amount Sales $1,200,000 Fixed cost of goods sold Variable cost of goods sold Fixed selling and administrative costs $150,000 $360,000 $140,000 Variable selling and administrative costs $180,000 Calculate the operating income for June under absorption costing: a. $650,000 b. $370,000 c. $470,000 d. $520,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

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.
Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.
Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of 3,000,000. The beginning finished goods inventory was 25,000 units at 310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Quality Cost Report Whitley Company had total sales of 1,000,000 for the year ending 20X1. The costs of quality are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.
Morwenna, Inc. reports the following information for August: Sales Revenue Variable Cost of Goods Sold Fixed Cost of Goods Sold Variable Selling and Administrative Costs Fixed Selling and Administrative Costs $900,000 150,000 60,000 100,000 60,000 Calculate the operating income for August using absorption costing. OA. $1,060,000 O B. $370,000 OC. $530,000 D. $250,000
XYZ, Inc. reports the following information for November: Sales Revenue $800,000 Variable Cost of Goods Sold 110,000 Fixed Cost of Goods Sold 45,000 Variable Selling and Administrative Costs 100,000 Fixed Selling and Administrative Costs 70,000 Calculate the gross profit for November using absorption (traditional) costing. Question 18Select one: A. $ 730,000 B. $690,000 C. $700,000 D. $645,000
mpany reports the following information for August: Net Sales Revenue: $835,000 Variable Cost of Goods Sold: 364,000 Fixed Cost of Goods Sold: 188,000 Variable Selling and Administrative Costs 175,000 Fixed Selling and Administrative Costs 82,000 For this company, under absorption costing, Gross Profit is O $296,000 O $253,000 O $317,000 O $283,000 O $471,000
Brush Industries reports the following information for May: Sales Fixed cost of goods sold $9,30,000 $ 1,06,000 Variable cost of goods sold $ 2,56,000 Fixed selling and administrative costs $ 1,06,000 Variable selling and administrative costs $ 1,31,000 Calculate the gross margin for May under absorption costing. a. $674,000 b. $343,000 c. $555,000 d. $568,000
Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units 600 Units produced 2,800 Units sold 2,900 Ending balance, in units 500 Production costs: Variable manufacturing costs per unit $60 Total fixed manufacturing costs $42,000 What is the unit product cost for the year using absorption costing? A. $84 B. $75 C. $130 D. $74
Norwood Company has the following information for September: Sales $490,000 Variable cost of goods sold 225,400 Fixed manufacturing costs 73,500 Variable selling and administrative expenses 53,900 Fixed selling and administrative expenses 29,400 Determine the following for Norwood Company for the month of September: a. Manufacturing margin $ b. Contribution margin $ c. Operating income $
Give true answer the general accounting question