Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for$870. Selected data for the company's operations last year follow:Units in beginning inventoryUnits producedUnits soldUnits in ending inventoryVariable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrativeFixed costs:Fixed manufacturing overheadFixed selling and administrativeSalesCost of goods soldGross marginSelling and administrative expenseNet operating income026023030$ 65,000$ 21,000The absorption costing income statement prepared by the company's accountant for last year appears below:$ 200, 100166, 75033,35024,450$ 8,900$105$325$45$ 15Required:1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of lastyear?2. Prepare an income statement for last year using variable costing. During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Sales (@ $63 per unit)Cost of goods sold (@ $40 per unit)Gross marginSelling and administrative expenses*Net operating income*$3 per unit variable; $251,000 fixed each year.The company's $40 unit product cost is computed as follows:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead ($432,000 ÷ 24,000 units)Absorption costing unit product costProduction and cost data for the first two years of operations are:Units producedUnits soldYear 124,00019,000Year 224,00029,000Year 1Year 2$ 1,197,000 $ 1,827,0001,160,000$711418$ 40760,000437,000308,000$ 129,000667,000338,000$ 329,000Required:1. Using variable costing, what is the unit product cost for both years?2. What is the variable costing net operating income in Year 1 and in Year 2?3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Answered: Image /qna-images/answer/434c387f-887c-49bf-b400-4a2732c3e9d1.jpg

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $870. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 260 230 30 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $105 $325 $45 $15 $ 65,000 $ 21,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 200, 100 166, 750 33,350 24, 450 $ 8,900 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing.

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $870. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 260 230 30 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $105 $325 $45 $15 $ 65,000 $ 21,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 200, 100 166, 750 33,350 24, 450 $ 8,900 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing.

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

ces Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $936. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 1. Absorption costing unit product cost 2. Variable costing unit product cost + 0 19,000 17,000 2,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. $ 200 $ 500 $58 $19 $ 720,000 $920,000
Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company's operations last year follow. Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 250 225 25 $ 100 $ 320 $ 40 $ 20 $ 60,000 $ 20,000 The absorption costing Income statement prepared by the company's accountant for last year appears below. Sales Cost of goods sold Gross margin $ 191,250 157,500 33,750 Selling and administrative expense 24,500 $ 9,250 Net operating income Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's Inventory at the end of last year? 2. Prepare an income statement for last year using variable costing. Complete this…
Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 9,500 8,700 800 2$ 80 20 10 30 Total variable cost per unit $ 140 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 170,000 160,000 $ 330,000 Total fixed costs Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year. 3. What is the company's break-even point in terms of the number of barbecue grills sold? Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 1
Xylo produces xylophones. Each xylophone is sold for $850. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units Produced 250 Units Sold 225 Units in ending inventory 25 Variable Costs per unit: Direct materials $100 Direct labor $320 Variable Mfg Overhead $40 Variable Selling & Admin $20 Fixed Costs: Fixed Mfg Overhead $60,000 Fixed Selling & Admin $20,000 Required: Compute the unit product cost for one xylophone under absorption…
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It d Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $795. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Required: 0 13,000 10,000 3,000 $ 180 $ 390 $ 51 $ 23 $ 700,000 $ 430,000 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. > Answer is complete but not entirely correct. 1.…
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $875. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 13,000 Units sold 10,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 230 Direct labor $ 410 Variable manufacturing overhead $ 55 Variable selling and administrative $ 22 Fixed costs: Fixed manufacturing overhead $ 780,000 Fixed selling and administrative $ 910,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. 1. Absorption costing unit product cost 2. Variable costing unit product cost
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $752. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 15,000 12,000 3,000 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 170 $340 $ 57 $ 20 $ 830,000 $ 970,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
answer in text form please (without image)
The annual data that follow pertain to Carl's Crazy Eyewear, a manufacturer of swimming goggles. (Carl's Crazy Eyewear had no beginning Finished Goods Inventory in January.) (Click the icon to view the data.) Read the requirements. Data table Number of goggles produced Number of goggles sold Sales price per unit Variable manufacturing cost per unit Sales commission cost per unit Fixed manufacturing overhead Fixed selling and administrative costs Print Done $ 235,000 195,000 30 7 3 940,000 230,000 Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Carl's Crazy Eyewear for the year ended December 31. 2. Which statement shows the higher operating income? Why? 3. Carl's Crazy Eyewear's marketing vice president believes a new sales promotion that costs $360,000 would increase sales to 225,000 goggles. Should the company go ahead with the promotion? Give your reasoning. Print Done - X ember 31. (Round intermediary
Hanshaben
Give me correct answer with explanation.
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $917. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 13,000 9,000 4,000 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 210 $ 440 $ 58 $18 $ 770,000 $ 550,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.