Last year, Stephen Company had 20,000 units in its ending inventory.During the year, Stephen Company's variable production costs were$12 per unit. The fixed manufacturing overhead cost was $8 per unit inthe beginning inventory. The company's operating income for the yearwas $9,600 higher under variable costing than it was under absorptioncosting. Given these facts, what must have been the number of units ofproduct in the beginning inventory last year?a. 18,800 unitsb. 19,200 unitsc. 19,520 unitsd. 21,200 units

Key InformationOperating income under variable costing was $9,600 higher than under absorption…

Answered: Last year, Stephen Company had 20,000…

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 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...

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Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
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B. Johnson Co. produces a single product. Last year, the firm had 25,000 units in its ending inventory. Johnson's variable production costs were P10 per unit and fixed manufacturing overhead costs were P5 per unit. The company's net operating income last year was $10,000 lower under variable costing than it was under absorption costing. Given these facts, the number of units of product in beginning inventory last year must be: A. 27,000 C. 24,000 B. 24,333 D. 23,000
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pls show solutions Last year, Stephen Company had 20,000 units in its ending inventory. During the year, Stephen's variable production costs were $12 per unit. The fixed manufacturing overhead cost was $8 per unit in the beginninginventory. The company's net income for the year was $9,600 higher under variable costing than it was under absorption costing. Given these facts, the number of units of product in the beginning inventory last year musthave been how much?
In the previous year, a company’s total fixed manufacturing overhead costs were P13,600 and its total variable production costs were P15,000. There were no units in beginning inventory, 10,000 units were produced, and 9,200 units were sold. How much lower is the operating income for the previous year using direct (variable) costing versus absorption costing?
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Chandler Company sells its product for $108 per unit. Variable manufacturing costs per unit are $49, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $17 per unit sold. Fixed administrative expenses total S104,000. Chandler had no beginning inventory for the year. During the year, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company be higher if calculated using variable costing or using absorption costing? Calculate reported income using each method. Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Fixed Costs Answer Less: Ending Inventory Answer Cost of Goods Sold Answer Answer Answer Answer Answer Administrative expense Answer Net Income Answer Variable Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Answer…
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Lover Company produced and sold 70,000 backpacks during the year just ended at an average price of P300 per unit. Variable manufacturing costs were P120 per unit and variable marketing costs were P60 per unit sold. Fixed costs amounted to P5,400,000 for manufacturing and P2,160,000 for marketing. There was no year-end work-in-process inventory. Compute for Lover’s breakeven point in peso sales for the year. Lover’s variable manufacturing costs are expected to increase by 10% in the coming year. Compute the firm’s breakeven point in peso sales for the coming year. If Lover’s variable manufacturing cost do increase by 10%, compute the selling price that would yield the same contribution margin in the coming year.
Alyssa Company produces a single product. Last year, the company had 16,000 units in its beginning inventory. During the year, the company's variable production costs were P6 per unit and its fixed manufacturing overhead costs were P4 per unit. The company's net operating income for the year was P24,000 higher under absorption costing than it was under variable costing. Given these facts, the number of units in the ending inventory must have been: * a. 22,000 unitsb. 10,000 unitsc. 6,000 unitsd. 4,000 units
Bradon Corporation has provided the following data for its two most recent years of operation: Selling price per unit Manufacturing costs: Variable manufacturing cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory $75,000 unit produced: $137,000 $15,000 $7,000 64 64 $ $ $ $ $ 97,000 Year 1 0 87 9,000 7,000 2,000 10 8 6 5 The net operating income (loss) under variable costing in Year 2 is closest to: 76,000 Year 2 2,000 7,000 5,000 4,000

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