Please provide correct answer this question general accounting McArthur Corp., which began business at the start of the current year, hadthe following data:Planned and actual production: 40,000 unitsSales: 38,000 units at $15 per unitProduction costs:Variable: $5 per unitFixed: $260,000Selling and administrative costs:Variable: $1 per unitFixed: $32,000The gross margin that the company would disclose on an absorption-costingincome statement is:a. $0b. $133,000c. $166,500d. $342,000

Step 1: Define Absorption CostingAbsorption costing is a costing method that generally accepted…

Answered: McArthur Corp., which began business at…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Patchi, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at ₱15 per unit Production costs: Variable: ₱4 per unit Fixed: ₱260,000 Selling and administrative costs: Variable: ₱1 per unit Fixed: ₱32,000 The contribution margin that the company would disclose on an absorption-costing income statement is: A. ₱0 B. ₱147,000 c. ₱166,500 D. ₱370,000
Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year isas follows:TotalSales $11,700,000Total variable cost 8,190,000Contribution margin $ 3,510,000Total fixed cost 2,254,200Operating income $ 1,255,800Required:1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars.2. How many units must be sold to earn operating income of $296,400?3. Compute the additional operating income that Jellico would earn if sales were $50,000 morethan expected.4. For the projected level of sales, compute the margin of safety in units, and then in salesdollars.5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)6. Compute the new operating income if sales are 10% higher than expected.
The following data were taken from the first year absorption based accounting records of Stan Corp.. Total fixed costs incurred, P100,000 Total variable costs incurred, P50,000 Total period costs incurred, P70,000 Total variable period costs incurred, P30,000 Units produced, 20,000 Units sold, 12,000 Unit sales price, P 12.00 If Stan Corp had used variable costing in first year of operations, how much income/loss before tax would it have reported?
The following data relate to Lobo Corporation for the year just ended: Sales revenue $750,000 Cost of goods sold: Variable portion 370,000 Fixed portion 110,000 Variable selling and administrative cost 50,000 Fixed selling and administrative cost 75,000 Which of the following statements is correct? A. Lobo’s variable-costing income statement would reveal a gross margin of $270,000. B. Lobo’s variable costing income statement would reveal a contribution margin of $330,000. C. Lobo’s absorption-costing income statement would reveal a contribution margin of $330,000. D. Lobo’s absorption costing income statement would reveal a gross margin of $330,000. E. Lobo’s absorption-costing income statement would reveal a gross margin of $145,000.
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Company A has the following documents: - Unit production cost 1,000 VND/product (including variable production cost 800 VND/product); - Sales and corporate management expenses are 500 VND/item (in which variable sales and corporate management costs are 120 VND/item); - Production level in the period is 2,000 products; Consumption during the period is 1,500 products. Total fixed costs for the period are (note that production prices are calculated based on production level, selling costs are calculated based on consumption level): a. 970.000₫ b. 870.000 d 1.060.000₫ d. 1.160.000₫
The following information is available from the accounting records of Eva Corporation. Fixed costs per period are $4800. Sales volume for the last period was $19,360, and variable costs were $13,552. Capacity per period is a sales volume of $32,000. Compute the total contribution margin.
KALIBO CORP. prepared the following absorption-costing income statement for the year ended May 31, 2019 Sales (16,000 units) Cost of goods sold Gross margin Selling and administrative expenses Operating income Additional information follows: Selling and administrative expenses include P1.50 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were P11 per unit. Actual fixed costs were equal to budgeted fixed costs. REQUIREMENT: Prepare a variable-costing income statement for the same period. P 320,000 216.000 P104,000 46.000 P 58,000 Absorption Costing Income Statement (Conversion from Variable Net Income) 4. LEGAZPI COMPANY manufactures and sells premium tomato juice by the gallon. LEGAZPI just finished its first year of operations. The following data relates to this first year:
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials $24 Direct labor 16 Factory overhead $365,000 12 Selling expenses: Sales salaries and commissions 75,800 5 Advertising 25,700 Travel 5,700 Miscellaneous selling expense 6,300 4 Administrative expenses: Office and officers' salaries 74,100 Supplies 9,100 2 Miscellaneous administrative expense 8,540 3 Total $570,240 $66 It is…
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials $24 Direct labor 16 Factory overhead $365,000 12 Selling expenses: Sales salaries and commissions 75,800 5 Advertising 25,700 Travel 5,700 Miscellaneous selling expense 6,300 4 Administrative expenses: Office and officers' salaries 74,100 Supplies 9,100 2 Miscellaneous administrative expense 8,540 3 Total $570,240 $66 It is…

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