Do fast answer of this accounting questions Maple Chocolates, Inc. is a new company that produces a single product.The company has no beginning inventory. During the year, the companyproduced 15,000 units, out of which 14,000 were sold. Below are Maple'scosts:Variable costs per unit:⚫Production: $6.75⚫ Selling and administrative: $3.50Total fixed costs for the year:⚫ Production: $30,000⚫ Selling and administrative: $105,000a) What is the unit product cost using absorption costing? b) What is the unitproduct cost using variable costing?

Step 1: Definition of Absorption Costing and Variable CostingAbsorption Costing: A costing method…

Answered: Maple Chocolates, Inc. is a new company…

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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Bodega Chocolate, Inc. is a new company that produces a single product. The company has no beginning inventory. During the year, the company produced 10,000 units out of which 9,000 were sold. Below are Bodega's costs: Variable costs per unit: Production $4.00 Selling and administrative $2.50 Total fixed costs for the year: Production $20,700.00 Selling and administrative $85,000 a) What is the unit product using absorption costing? b) What is the unit product cost using variable costing?
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Bodega chocolate, inc. is a new company that produces a single product solve this accounting questions
Pierre Corporation manufactures a single product that it sells for $122 per unit. The company had the following cost structure thsi year: Variable Manufacturing Cost per unit: $27 Variable Selling and Administrative cost per unit: $14 Fixed Manufacturing Cost, Total: $2,713,000 Fixed Selling and Administrative Costs, Total: $1,282,000 There were no units in beginning inventory. During the year, 93,000 units were produced and 86,000 units were sold. Under absorption costing, the unit product cost is: Select one: A. $56.17 B. $87.45 C. $28.91 D. $70.17 E. $55.91
Mobile, Inc. manufactured 700 units of a new product A during the year. The variable cost of product A was $ 5.00 and the fixed cost per unit $ 2.00. The inventory at the end of the year, on December 31, was 100 units. There was no inventory of the product at the beginning of the year. What would be the change in inventory in dollars as of December 31 if we used the variable cost system instead of the absorption cost system?
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…
Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80.000 units. The absorption costing income statement for this year follows. Income Statement (Absorption Costing) Sales (80.000 units $45 per unit) Cost of goods sold Gross profit Selling and administrative expenses Income Additional Information a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $225 per unit in variable selling and administrative expenses. b. The company's product cost of $25 per unit consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($700,000/ 100,000 units) Required: Prepare an income statement for the company under variable costing. Sales Less: Variable expenses TREZ Company Income Statement (Variable Costing) Variable cost of goods sold Variable selling and administrative expenses Less: Fixed expenses Answer is not complete. Loss Fixed overhead Fixed selling and administrative costs $…
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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
Istanbul Company makes special equipment. Each unit sells for $420. Istanbul uses just-in-time inventory procedures; it produces and sells 12,500 units per year. It has provided the following income statement data: Traditional Format Sales revenue Cost of goods sold $5,250,000 3,100,000 Gross profit 2,150,000 Selling & admin. expenses 670,000 Operating income A) increase by $16,940. Contribution Margin Format Sales revenue Variable costs: Manufacturing Selling & admin. $1,480,000 Operating income B) decrease by $22,500. Manufacturing Selling & admin. Contribution margin C) increase by $27,500. Fixed costs: $5,250,000 1,200,000 400,000 3,650,000 A foreign company has offered to buy 110 units for a reduced sales price of $250 per unit. The marketing manager says the sale will have no negative impact the company's regular sales. The sales manager says that this sale will not require any additional selling and administrative costs, as it is a one-time deal. The production manager reports…
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Rick Corporation produces a single product. Variable manufacturing costs is P20 per unit and fixed manufacturing costs is P150,000. Rick Corporation uses a normal activity of 5,000 units to set its standards. Rick Corporation began the year with no inventory, produced 5,500 units, and sold 5,250 units. What is Rick Corporation’s ending inventory cost using absorption costing?

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