Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling priceUnits in beginning inventoryUnits producedUnits soldUnits in ending inventoryVariable costs per-unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrative expenseFixed costs:Fixed manufacturing overheadFixed selling and administrative expense$ 1222906,6006,590300$ 42$ 26$ 2$ 21$ 151,800$ 46,130The company produces the same number of units every month, although the sales in units vary from month to month. Thecompany's variable costs per unit and total fixed costs have been constant from month to month.Required:a. Prepare a contribution format income statement for the month using variable costing.b. Prepare an income statement for the month using absorption costing.

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Answered: Nelter Corporation, which has only one…

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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Jarvix Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $111 Units in beginning inventory Units produced 8,800 Units sold 8,900 Variable costs per unit: Direct materials $34 Direct labour $37 Variable manufacturing overhead $3 Variable selling and administrative $9 Fixed costs: Fixed manufacturing overhead $61,600 Fixed selling and administrative $169,100 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What was the amount of fixed overhead released for the month under absorption cos Multiple Choice $0 $2,100 $2,800 $61,600
Farris 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 $ 172 0 9,700 9,300 400 Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the net operating income (loss) for the month under variable costing? $6,000 $11,600 $17,600 ($40,000) $ 33 $75 $21 $ 25 $ 145,500 $ 10,300
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 $ 90 3,400 Units sold 3,000 Units in ending inventory 400 Variable costs per unit: Direct materials $ 21 Direct labor $38 Variable manufacturing overhead Variable selling and administrative expense $ 6 $ 4 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $54,400 $ 3,000 What is the unit product cost for the month under variable costing?
Data concerning Dakota Enterprises' operations last year appear below: Units in the Beginning Inventory -0- Units Units Produced 4,000 Units Units Sold 3,900 Units Selling Price Per Unit $140 Variable Costs Per Unit: Direct Material $41 Direct Labor 43 Manufacturing Overhead 6 Sellling and Administrative Costs 4 Fixed Costs in Total: Manufacturing Overhead $84,000 Selling and Administrative Costs 39,000 Match each of the following items with the proper amount. Unit Product Cost , Using Absorption Costing Unit Gross Margin…
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: $ 88 Selling price Units in beginning inventory Units produced 5,200 Units sold 4,900 300 Units in ending inventory Variable costs per unit: $ 12 Direct materials $23 Direct labor $ 2 Variable manufacturing overhead Variable selling and administrative expense $ 5 Fixed costs: $161,200 Fixed manufacturing overhead Fixed selling and administrative expense $ 63,700 The total contribution margin for the month under variable costing is: Multiple Choice $225.400
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
Norenberg Corporation manufactures a single product. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year Variable costing net operating income, this year Beginning inventory, last year $ 88,600 $ 96, 100 O units Ending inventory, last year Ending inventory, this year Fixed manufacturing overhead cost per unit this year and last year 3,600 units 1,300 units $ 7 per unit What was the absorption costing net operating income this year? Multiple Choice $100,500 $112,200 $80,000 $108,000
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Krepps Corporation produces a single product. Last year, Krepps manufactured 34,250 units and sold 28,800 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales totaled $1,434,200 for the year, variable selling and administrative expenses totaled $167,560, and fixed selling and administrative expenses totaled $215,775. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be: Multiple Choice O $103,550 lower than under absorption costing. O $111,150 lower than under absorption costing. $103,550 higher than under absorption costing. $ 284,275 $ 140,425 $ 256,875 $ 650,750 $111,150 higher than under absorption costing.
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