Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing Sales price Direct materials Direct labor Variable overhead. Fixed overhead $ 56.10 per unit $9.10 per unit $6.60 per unit $ 11.10 per unit $ 750,300 per year 1. Compute gross profit assuming (a) 61,000 units are produced and 61,000 units are sold and (b) 82,000 units are produced and 61,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 21,000 more units than it sells? Complete this question by entering your answers in the tabs below. Required 1 Required 2

Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing Sales price Direct materials Direct labor Variable overhead. Fixed overhead $ 56.10 per unit $9.10 per unit $6.60 per unit $ 11.10 per unit $ 750,300 per year 1. Compute gross profit assuming (a) 61,000 units are produced and 61,000 units are sold and (b) 82,000 units are produced and 61,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 21,000 more units than it sells? Complete this question by entering your answers in the tabs below. Required 1 Required 2

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...

See similar textbooks

Similar questions

What are the total costs to account for if a companys beginning inventory had $231,432 in materials, $186,450 in conversion costs, and added direct material costs ($4,231,392), direct labor ($2,313,392), and manufacturing overhead ($1,156,696)?
To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
Ripley, 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. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
The related data of Mireia Company: Cost of goods sold P1,687,800 Estimated overhead cost 2,000,000 Estimated direct labor hours 100,000 Actual overhead cost 1,789,300 Actual direct labor hours 87,100 Factory overhead is based on direct labor hours. How much is the adjusted cost of goods sold?
Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units Units produced Units sold Ending balance, in units Production costs: Variable manufacturing costs per unit Total fixed manufacturing costs What is the unit product cost for the year using absorption costing? OA. $117 630 1,400 1,500 530 $50 $42,000 W
Please provide answer in text (Without image)
Accounting records for The Ralston Company show the following for the most recent fiscal year. Units produced and sold Total revenues and costs Sales revenue Direct materials costs Direct labor costs Variable manufacturing overhead Fixed manufacturing overhead Variable marketing and administrative costs Fixed marketing and administrative costs Required: a. Prepare a gross margin Income statement. b. Prepare a contribution margin Income statement. Required A Required B Complete this question by entering your answers in the tabs below. Prepare a gross margin income statement. Gross Margin Income Statement 59,500
lomework (i) Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. \table[[Sales price,$56.10 per unit], [ Direct materials, $9.10 per unit], [Direct labor, $6.60 per unit], [Variable overhead,$11.10 per unit], [Fixed overhead,$750,300 per year]] Compute gross profit assuming (a) 61,000 units are produced and 61,000 units are sold and (b)82,000 units are produced and 61,000 units are sold. By how much would the company's gross profit increase or decrease from producing 21,000 more units than it sells?
Galino Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price 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 $99 B. $31,200 C. $13,000 D. $135,600 0 2,900 2,600 300 $27 $11 $6 $7 $104,400 $13,000 109. What is the total period cost for the month under the absorption costing approach? A. $104.400
The cost per unit associated with the production of Xen Merchandising are the following: Direct Materials - P1,000; Direct Wages - P200; Variable Overhead - P1,500; and Fixed Overhead - P2,000. Given the data, what is the product cost?
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed per year 0 31,600 29,600 $ 414 $ 21 $ 621,600 Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year Assume that direct labor is a variable cost. Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing. d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. $ 216 $ 50 $37 $ 379,200
X Company sells one product. The following are the accountant's price and cost estimates for next year: Selling price Direct materials per unit Direct labor per unit [all variable] Variable overhead per unit Variable selling and administration per unit Total fixed overhead Total fixed selling and administration $16.32 3.51 1.61 2.43 2.00 A: $20,980 OB: $24,547 Oc: $28,720 OD: $33,602 OE: $39,315 OF: $45,998 Submit Answer $11,900 10,900 Unit sales this year are expected to be 5,400; next year, they're expected to be 6,000. The accountant is uncertain about her $10,900 total fixed selling and administration estimate. What must total fixed selling and administration be next year in order for X Company to breakeven?