Need Answer please let me please provide Solutions In 2017, Commodity Inc., processor of whole grain flour, had thecapacity to produce 10,000,000 pounds of product at a conversioncost per pound of $0.20. The conversion cost per pound was $0.15in 2016 (the previous year). The direct material cost per pound forboth years was $0.07 per pound and in 2017, Commodity Inc.produced 9,300,000 pounds while actual production for theprevious year was 8,600,000 pounds.What was the cost of unused capacity in 2017?

Step 1: Define Unused Capacity:The difference between the total capacity available to produce goods…

Answered: In 2017, Commodity Inc., processor of…

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

Savannah, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2017 are projected as follows. Quarter Units First 80,000 Second 150,000 Third 550,000 Fourth 120,000 Annual total 900,000 Savannah incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Savannah will incur fixed manufacturing costs of $720,000 and fixed nonmanufacturing costs of $1,080,000. Savannah will sell its product for $4.00 per unit.AccountingDetermine the amount of net income Savannah will report in each of the four quarters of 2017, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach.AnalysisCompute Savannah’s profit margin on sales for each of the four quarters of 2017 under both the integral and discrete approaches. Discuss the effects of employing the integral and…
In 2012, Grant Co. sold 160,000 units of its product at a selling price of $40. The variable cost per unit was $30, and Grant reported net income for the year of $200,000. What was the amount of Grant's fixed costs for the year?
please see image.
During 2017, Thornton Manufacturing Company incurred $70,000,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in 2017. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $52 per unit. Packaging, shipping, and sales commissions are expected to be $10 per unit. Thornton expects to sell 1,400,000 batteries before new research renders the battery design technologically obsolete. During 2017, Thornton made 449,000 batteries and sold 392,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the 2017 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Thornton desires to earn a profit margin that is equal to 20 percent of the total cost of developing, making, and…
Stanczyk Inc. started operations in January 2025. The company produces and sells cabinets for $5,200 each. The following information pertains to the cost and sales of the cabinets each year: Variable manufacturing costs $2,300 per unit Variable operating costs $65 per unit Fixed manufacturing costs $25,000 Fixed operating costs $12,000 The company produced 25 units per year for 2025, 2026, and 2027. The company sold 22 units in 2025, 20 units in 2026, and 26 units in 2027. It reported no volume variances for the three-year period. For 2025, Question options: a) the operating income for absorption costing may be greater than, equal to or less than operating income under variable costing. b) the operating income for absorption costing equaled operating income for variable costing. c) variable costing operating income exceeded absorption costing operating income by $3,000.…
(CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit. Q. Miami’s 2017 operating income using variable costing is (a) $1,100,000, (b) $600,000, (c) $360,000, (d) $780,000, or (e) none of these. Show supporting calculations.
Lighter Incorporated planned and manufactured 440,000 units of its single product in 2022, its first year of operations. Variable manufacturing costs were $58 per unit of production. Planned and fixed manufacturing costs were $840,000. Marketing and administrative costs (all fixed) were $640,000 in 2022. Lighter Incorporated sold 203,000 units of product in 2022 at $73 per unit. Sales for 2022 are calculated to be:
Questions (d) and (e) are based on the information below. Sanit Ltd is an alcohol sanitizer manufacturing company that produced 175 000 units of 100 ml hand sanitizer bottles during the financial year ended 31 August 2020. The normal capacity is 100 000 units of hand sanitizer 100 ml bottles per year. The total cost per unit, excluding fixed production overheads, amounts to R50 per unit. The fixed production overheads incurred amounts to R700 000 for the year. The closing balance of finished goods is 5 000 units. Assume there is no opening balance. (d) The under / over recovered fixed production overheads that is recognised as an expense (cost of sales) according to IAS 2, Inventories, amounts to: 1) R525 000 over recovery 2) R525 000 under recovery 3) R700 000 over recovery 4) R0 (e) Calculate the cost of sales in the statement of profit or loss and other comprehensive income for the financial year end 31 August 2020 of Sanit Ltd: 1) R9 000 000 2) R9 180 000…
Cullumber Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (358,400 units) Cost of goods sold Gross profit Operating expenses Net income (a) Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Cullumber receives a special order for 24.500 toasters at $8.38 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs. Revenues Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cost of goods sold Operating expenses $4,377.000 2,590,720 1,786.280 837.760 Net…
Boston, Inc., planned and actually manufactured 200,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $11 per unit sold. Planned and actual fixed manufacturing costs were $1,000,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $370,000. Boston sold 140,000 units of product at $46 per unit. Read the requirements LOADING... . Requirement 1. Boston's 2017 operating income using absorption costing is (a) $1,030,000, (b) $730,000, (c) $1,100,000, (d) $1,400,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.)…
On January 1, 2021, Petersen Enterprises purchased natural resources for $1,800,000. The company expects the resources to produce 12,000,000 units of product. What is the depletion cost per unit? (Round answer to 2 decimal places, e.g. 52.75.) Depletion cost per unit $ eTextbook and Media If the company mined and sold 20,000 units in January, what is depletion expense for the month? Depletion expense for January $ eTextbook and Media
please see image.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS