Morning Company reports the following information for March:E (Click the icon to view the data.)Read the requirements.Requirement 1. Calculate the gross profit and operating income for March using absorption costing.Morning CompanyIncome Statement (Absorption Costing)For the Month Ended March 31Data TableNet Sales Revenue67,850Variable Cost of Goods Solłd19,300Operating incomeFixed Cost of Goods Sold8,400Variable Selfing and Administrative Costs16,500RequirementsFixed Selling and Administrative Costs3,8001. Calculate the gross profit and operating income for March using absorptioncosting.2. Calculate the contribution margin and operating income for March usingvariable costing.PrintDone

Variable costing Method: In Variable costing Method, it includes only variable costs associated with…

Morning Company reports the following information for March E (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the gross profit and operating income for March using absorption costing. Morning Company Income Statement (Absorption Costing) For the Month Ended March 31 E Data Table Net Sales Revenue 67,850 Variable Cost of Goods Sold 19,300 Operating Income Fixed Cost of Goods Sold 8,400 Variable Selfing and Administrative Costs 16,500 Requirements Fixed Selling and Administrative Costs 3,800 1. Calculate the gross profit and operating income for March using absorption costing 2. Calculate the contribution margin and operating income for March using variable costing Print Done

Morning Company reports the following information for March E (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the gross profit and operating income for March using absorption costing. Morning Company Income Statement (Absorption Costing) For the Month Ended March 31 E Data Table Net Sales Revenue 67,850 Variable Cost of Goods Sold 19,300 Operating Income Fixed Cost of Goods Sold 8,400 Variable Selfing and Administrative Costs 16,500 Requirements Fixed Selling and Administrative Costs 3,800 1. Calculate the gross profit and operating income for March using absorption costing 2. Calculate the contribution margin and operating income for March using variable costing Print Done

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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Bolka Corporation, a merchandising company, reported the following results for October: Sales $ 418,000 Cost of goods sold (all variable) $ 175,500 Total variable selling expense $ 23,700 Total fixed selling expense $ 21,800 Total variable administrative expense $ 16,200 Total fixed administrative expense $ 34,300 The contribution margin for October is: Multiple Choice $146,500 $361,900 $202,600 $242,500
Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead. Variable selling and administrative expense Multiple Choice Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the unit product cost for the month under variable costing? $110 per unit $137 per unit $143 0 $120 per unit 6,850 6,550 300 $93 per unit $23 $53 $17 $17 $184,950 $ 27,300
Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: May June July Sales in units 4,800 5,000 5,500 Sales $ 168,000 $ 175,000 $ 192,500 Cost of goods sold 86,400 90,000 99,000 Gross margin 81,600 85,000 93,500 Selling and administrative expenses: Advertising 17,000 17,000 17,000 Shipping 16,800 17,500 19,250 Salaries and commissions 29,600 30,000 31,000 Total selling and administrative expenses 63,400 64,500 67,250 Net operating income $ 18,200 $ 20,500 $ 26,250 What is the total estimated selling and administrative expense if the company sells 5,000 units? Garrison 17e Rechecks 2021-10-08
Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($282,960 2,400 units) Total variable selling expenses ($14 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a contribution margin income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Req 2A Reg 2B 2,400 1,500 $ 630.00 65.00 95.00 45.00 117.90 Req 3 Gross Margin Less: Non-Manufacturing Expenses 21,000.00 74,000.00 Complete a full absorption costing income statement for Presidio.…
Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin CompanyAbsorption Costing Income StatementFor the Month Ended April 30 Sales (6,600 units) $178,200 Cost of goods sold: Cost of goods manufactured (7,700 units) $146,300 Inventory, April 30 (1,100 units) (20,900) Total cost of goods sold (125,400) Gross profit $52,800 Selling and administrative expenses (32,280) Operating income $20,520 If the fixed manufacturing costs were $39,501 and the fixed selling and administrative expenses were $15,810, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin CompanyVariable Costing Income StatementFor the Month Ended April 30 $Sales Variable cost of goods sold: $Variable cost of goods manufactured…
Please give me step by step instruction on how to get cost of goods manufactured using the following: Cost of Goods Manufactured, using Variable and Absorption Costing On June 30, the end of the first year of operations, Johnson Industries, Inc., manufactured 6,100 units and sold 5,200 units. The following income statement was prepared, based on the variable costing concept: Johnson Industries, Inc.Variable Costing Income StatementFor the Year Ended June 30, 2016 Sales $1,300,000 Variable cost of goods sold: Variable cost of goods manufactured $732,000 Less inventory, June 30 108,000 Variable cost of goods sold 624,000 Manufacturing margin $676,000 Variable selling and administrative expenses 156,000 Contribution margin $520,000 Fixed costs: Fixed manufacturing costs $335,500 Fixed selling and administrative expenses 104,000 439,500 Income from operations $80,500 Determine the unit cost of goods manufactured,…
FastTrack Inc. manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March are as follows. (Click to view the data.) The selling price per unit is $3,600. Required 1. Present statements of comprehensive income for January, February, and March under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Requirement 1a. Present statements of comprehensive income for January, February, and March unde Complete the top half of the statement of comprehensive income for each month first, and then complet January February Revenue Variable costs: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Less: Ending inventory Variable cost of goods sold Variable operating costs Data table Unit data: Beginning inventory Production Sales Variable costs: Print $ 0 1,000 950 Manufacturing…
On October 31, the end of the first month of operations, Maryville Equipment Company pre- pared the following income statement, based on the variable costing concept: Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (220,000 units).... $ 7,920,000 Variable cost of goods sold: Variable cost of goods manufactured . Inventory, October 31 (45,000 units) .. Total variable cost of goods sold... Manufacturing margin....... Variable selling and administrative expenses $ 6,360,000 (1,080,000) (5,280,000) $ 2,640,000 (330,000) $ 2,310,000 Contribution margin... Fixed costs: Fixed manufacturing costs ... Fixed selling and administrative expenses.. $ 530,000 100,000 Total fixed costs.... (630,000) $ 1,680,000 Operating income... Prepare an income statement under absorption costing.
Variable Costing Income Statement On April 30, the end of the first month of operations, Jopl Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (4,600 units) Cost of goods sold: Cost of goods manufactured (5,200 units) Inventory, April 30 (700 units) Total cost of goods sold Gross profit Selling and administrative expenses Operating income Joplin Company Variable Costing Income Statement For the Month Ended April 30 Variable cost of goods sold: If the fixed manufacturing costs were $29,484 and the fixed selling and administrative expenses were $12,590, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. 1:110 $109,200 (14,700) Fixed costs: $138,000 (94,500) $43,500 (25,700) $17,800
Estimated income statements, using absorption and variable costingPrior to the first month of operations ending October 31, Marshall Inc.estimated the attached operating results: The company is evaluating a proposal to manufacture 50,000 unitsinstead of 40,000 units, thus creating an ending inventory of 10,000 units.Manufacturing the additional units will not change sales, unit variablefactory overhead costs, total fixed factory overhead cost, or total sellingand administrative expenses. a. Prepare an estimated income statement, comparing operatingresults if 40,000 and 50,000 units are manufactured in (1) theabsorption costing format and (2) the variable costing format.b. What is the reason for the difference in operating incomereported for the two levels of production by the absorption costingincome statement?
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $840. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative The absorption costing income statement prepa Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 0 300 275 25 $ 100 $310 $ 30 $ 35 $ 66,000 $ 31,000 by the company's accountant for last year appears below: $ 231,000 181,500 49,500 40,625 $ 8,875 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing.
Philadelphia Company has the following information for March: Sales $484,795 Variable cost of goods sold 205,574 Fixed manufacturing costs 76,273 Variable selling and administrative expenses 52,568 Fixed selling and administrating expenses 35,254 a. Determine the March manufacturing margin.$fill in the blank 1 b. Determine the March contribution margin.$fill in the blank 2 c. Determine the March income from operations for Philadelphia Company.$fill in the blank 3