Man City Enterprises commenced operations on 1 January 2022, and produces a single product that sells for R36 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-inprocess inventory at the end of the year. All costs are presented in the table below: Cost type Direct materials Direct labour Factory overhead Marketing and administrative Fixed R600 000 R300 000 Variable R6.00 per unit produced R4.00 per unit produced R2.00 per unit produced R1.00 per unit sold Required: Prepare the income statement using the Marginal Costing method for the year ended 31 December 2022. 43

Man City Enterprises commenced operations on 1 January 2022, and produces a single product that sells for R36 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-inprocess inventory at the end of the year. All costs are presented in the table below: Cost type Direct materials Direct labour Factory overhead Marketing and administrative Fixed R600 000 R300 000 Variable R6.00 per unit produced R4.00 per unit produced R2.00 per unit produced R1.00 per unit sold Required: Prepare the income statement using the Marginal Costing method for the year ended 31 December 2022. 43

Name: Man City Enterprises commenced operations on 1 January 2022, and prod
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Man City Enterprises commenced operations on 1 January 2022, and produces a single product that sellsfor R36 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 unitswere sold. There was no work-inprocess inventory

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

Ross Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable costs per unit: Direct materials $81 Fixed costs per year Direct labor $1,008,000 Fixed manufacturing overhead $2,520,000 Fixed selling and administrative $1,440,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 36,000 units and sold 30,000 units. There was no ending work-in-process inventory. The company's only product is sold for $251 per unit. 9.1 What is the unit product cost under super-variable costing? 9.2 What is the net operating income under super-variable costing? 9.3 Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced. How much higher or lower is variable costing income compared to that under super-variable costing? 9.4 Assume that the company…
Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has been prepared for its estimated upper and lower levels of activity. Production Category Lower Limit Upper Limit Units of Production 4,000 units 6,000 units Direct Materials $60,000 $90,000 Direct Labor $80,000 $120,000 Manufacturing Overhead: Indirect materials $25,000 $37,500 Indirect labor $40,000 $50,000 Depreciation $20,000 $20,000 Selling and Admin. Expenses: Sales salaries $50,000 $65,000 Office salaries $30,000 $30,000 Advertising $45,000 $45,000 Other $15,000 $20,000 Totals $365,000 $477,500 The only variable expenses for this company are Question 15 options: indirect materials, direct materials, and direct labor. all categories of selling and administrative expenses. indirect materials, indirect labor, direct materials, and direct labor. None of these.
Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 10 9. %24 24 $87,750 $ 315,000 During this year, 29,250 units were produced and 25,250 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $84,000 for the 4,000 unsold units. Required: 1-a. Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing. 1-b. Does it appear that the company is using variable costing or absorption costing to assign costs to the 4,000 units in its Finished Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. a. Is Finished Goods inventory of $84,000 the correct amount to include on the…
Bailey Company manufacturers and sells one product for $39 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Bailey Company produces and sells 24,000 units, its unit costs are as follows: Amount per UnitDirect materials $ 10.00Direct labor $ 6.00Variable manufacturing overhead $ 2.00Fixed manufacturing overhead $ 7.00Fixed selling expense $ 3.75Fixed administrative expense $ 2.25Sales commissions $ 4.50Variable administrative expense $ 1.50 I NEED HELP WITH QUESTIONS 4A-5
Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method. Costa Enterprises commenced operations on 02 January 2022, and produces a single product that sells for R72 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-in-process inventory at the end of the year. Manufacturing costs and marketing and administrative costs for 2022 were as follows: Please avoid solutions in an image format thanku
The normal capacity of an entity is 350 000 units per annum. The raw material cost is R220 per unit and direct labour is R250 per unit. 9. Variable production overheads are R60 per unit and fixed production overheads incurred amounts to R5 250 000. The closing balance of finished goods is 9 500 units (assume there is no opening balance). Which amount is the correct cost of sales figure if the actual production was 280 000 units for the year? 1. R145 000 000 2. R146 500 000 3. R147 422 500 4. R148 472 500
Bailey Company manufacturers and sells one product for $39 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Bailey Company produces and sells 24,000 units, its unit costs are as follows: Amount per UnitDirect materials $ 10.00Direct labor $ 6.00Variable manufacturing overhead $ 2.00Fixed manufacturing overhead $ 7.00Fixed selling expense $ 3.75Fixed administrative expense $ 2.25Sales commissions $ 4.50Variable administrative expense $ 1.50 I NEED HELP WITH QUESTIONS 7B-9
A company manufactures 1000units of outputs using 5000units of materials @ GHC30 each, and pays factory workers, indirect production expenses, and administrative expense of GHC100000, GHC50000, and GHC30000 respectively. If the company sold two-thirds of the goods produced, the total product cost as well as total expenses for the given period is O A. GHC300000 and GHC200000 respectively O B. GHC200000 and GHC30000 respectively OC. GHC230000 and GHC30000 respectively D. GHC300000 and GHC230000 respectively