Listed here are three separate series of costs measured at various volume levels.Volume (Units)e3807601,1401,5201,9002,280Series 1503,0406,0809,12012,16015,20018,240Series 1Series 2Senes 3Series 2$450450450450450450450Series 3$ 6006006001,2001,2001,8001,800Examine each series and identify whether it is best described as a fixed, variable, or step-wise cost. Hint: It can help to graph each costseries.

Costs can be of different types.For instance variable costs are those costs that change when the…

Listed here are three separate series of costs measured at various volume levels. Volume (Units) Series 3 Series 2 $ 450 e $ 600 450 600 450 600 450 1,200 450 1,200 450 450 380 760 1,140 1,520 1,900 2,280 Series 1 50 3,040 6,080 9,120 12,160 15,200 18,240 Series 1 Series 2 Series 3 1,800 1,800 Examine each series and identify whether it is best described as a fixed, variable, or step-wise cost. Hint: It can help to graph each cost series.

Listed here are three separate series of costs measured at various volume levels. Volume (Units) Series 3 Series 2 $ 450 e $ 600 450 600 450 600 450 1,200 450 1,200 450 450 380 760 1,140 1,520 1,900 2,280 Series 1 50 3,040 6,080 9,120 12,160 15,200 18,240 Series 1 Series 2 Series 3 1,800 1,800 Examine each series and identify whether it is best described as a fixed, variable, or step-wise cost. Hint: It can help to graph each cost series.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using the following data, apply the high-low method of cost analysis to the three cost data groups: Volume Alpha Beta Gamma 2,000 $6,600 $2,400 $8,000 6,000 $9,800 $7,000 $8,000 13,000 $13,000 $12,000 $8,000 20,000 $21,000 $24,000 $8,000 What cost behavior patterns are apparent for each group? Select one: a. Alpha = Variable, Beta = Mixed, Gamma = Fixed b. Alpha = Mixed, Beta = Fixed, Gamma = Variable c. Alpha = Variable, Beta = Fixed, Gamma = Mixed d. Alpha = Fixed, Beta = Variable, Gamma = Mixed e. Alpha = Mixed, Beta = Variable, Gamma = Fixed
(c2) Estimated daily production costs for April 1 using both the high-low method and the regression model and actual manufacturing costs incurred on April 1 are provided here. Units manufactured Total cost 3,897 $296,512 Estimated cost using high-low method Estimated cost using the regression model Actual cost B $300,486 $296,149 $296,512 Identify which is the most reliable approach to estimating costs and explain why. I U T₁ T' IEEE J E H 3 99 = FEB á
need help please. also, please Calculate the total cost of the1,600 units in ending inventory using absorption costing and variable costing
Your company management wants you to compare the list of materials for HML and ABC analysis. For ABC classification they set the following criteria; Items below SR 100000 annual consumption shall be considered as C-items, items between SR 100000 and SR 150000 shall be considered as B-items, and items above SR 150000 shall be considered as A- items For HML classification they set the following criteria; Items below unit price SR 50 shall be considered as L-items, items between SR 50 and SR 100 unit price shall be considered as M-items, and items above SR 100 unit price shall be considered as H-items. Based upon your analysis suggest which classification shall be better for the company so that inventory can be optimized. Justify your answer. Consumption (Units) Annual Price/unit SR Consumption (SR) Annual Item H/M/L A/B/C A 2000 40 В 3000 65 C 2500 90 D 2400 100 E 2300 85 F 2600 110 G 2700 35 H 2300 105 I 2200 130 J 2500 45
Problem 4-19 (Algo) Variable Costing Income Statement; Reconciliation [LO4-2, LO4-3] 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 (@$35 per unit) Gross margin Selling and administrative expenses* Net operating income $ Units produced Units sold $ *$3 per unit variable; $250,000 fixed each year. The company's $35 unit product cost is computed as follows: Year 1 Year 2 20,000 15,000 Year 1 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,000+ 20,000 units) Absorption costing unit product cost 20,000 25,000 945,000 525,000 420,000 295,000 125,000 Year 2 $ 1,575,000 875,000 700,000 325,000 375,000 $ Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: $…
EXERCISE 1-11 Cost Behavior; Contribution Format Income Statement L01-4, L01-6 Harris Company manufactures and sells a single product. A partially completed schedule of the com- pany's total costs and costs per unit over the relevant range of 30,000 to 50,000 units is given below: Vist Jumsch Total costs: Variable cost. Fixed cost Total cost. Costs per unit: Variable cost. Fixed cost Total cost per unit. Units Produced and Sold 40,000 30,000 $180,000 300,000 $480,000 ? ? ? ? ? ? ? ? ? 50,000 ? ? ? ? ? ? Required: 1. Complete the above schedule of the company's total costs and costs per unit. 2. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribution format income statement for the year. 6 107
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What type of cost is this? Total Costs Units January $100,4881,057 February $100,488880 If it is a mixed cost, enter a 1 for your answer. If it is a variable cost, enter a 2 for your answer. If it is a fixed cost, enter a 3 for your answer.
Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Round your answers to 2 decimal places. g. Variable production cost per unit h. Full cost per unit 500,000 units $ $ S $ 50 1,500,000 4,500,000 600,000 units $ 19.00 17.00 $ 13.00 $ 8 11 9 5 500,000 units 19.00 17.00 14.50
Check my work 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 (@ $35 per unit) Gross margin Selling and administrative expenses* Year 1 $ 1, 008, 00 560, 000 448, 000 295, 000 Year 2 $ 1, 638, 00 910, 000 728, 000 325, 000 Net operating income 153, 000 403, 000 * $3 per unit variable; $247,000 fixed each year. The company's $35 unit product cost is computed as follows: Direct materials $ 5 Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($357, 000 + 21, 000 units) Absorption costing unit productlcost 10 3 17 $ 35 Production and cost data for the first two years of operations are: Year 2 21, 000 Year 1 Units produced Units sold 21, 000 16, 000 26, 000 Required: 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…
Your company management wants you to compare the list of materials for HML and ABC analysis. For ABC classification they set the following criteria; Items below SR 100000 annual consumption shall be considered as C-items, items between SR 100000 and SR 150000 shall be considered as B-items, and items above SR 150000 shall be considered as A- items For HML classification they set the following criteria; Items below unit price SR 50 shall be considered as L-items, items between SR 50 and SR 100 unit price shall be considered as M-items, and items above SR 100 unit price shall be considered as H-items. Based upon your analysis suggest which classification shall be better for the company so that inventory can be optimized. Justify your answer. Item Consumption (Units) Annual Price/unit SR H/M/L Consumption (SR) Annual A/B/C A 2000 40 B 3000 65 C 2500 90…