general account Octagonal Company has the following information for 2018:Selling priceVariable production costs$150 per unit$40 per unit producedVariable selling and admin. expenses$16 per unit soldFixed production costs$ 2,00,000Fixed selling and admin. expenses$ 1,40,000Units produced10,000 unitsUnits sold8,000 unitsThere were no beginning inventories. What is the cost ofending inventory for Octagonal using the variable costingmethod?

First, determine the number of units left Ending inventory (units) = units produced - units sold=…

Answered: Octagonal Company has the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1PA: When prices are rising (inflation), which costing method would produce the highest value for gross...

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Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
What is the value of ending inventory using the variable costing method?
Stiles Corporation uses the LIFO cost flow assumption and is in the process of applying the LCM rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Product A Product B Historical cost $80 $96 Replacement cost 70 98 Estimated cost of disposal 32 30 Estimated selling price 150 120 Required: 1. What is the correct inventory value for each product? Product A $fill in the blank 1 per unit Product B $fill in the blank 2 per unit 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations? For Product A, For Product B,
Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Product A Product B Historical cost $80 $96 Replacement cost 71 98 Estimated cost of disposal 32 28 Estimated selling price 150 120 Required: What is the correct inventory value for each product? Product A $ per unit Product B $ per unit
1. In presenting inventory on balance sheet December 31, 2021, the unit cost under absorption costing is? 2. What is the net income for 2021 under variable costing?
1. What is the value of ending inventory using the variable costing method?
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By using the information given below calculate the net income under the traditional costing method. Show your calculations. (No beginning finished goods inventory.) Variable cost of goods sold per unit Fixed cost of goods sold per unit Variable operating expenses per unit Fixed operating expenses per unit Selling price Number of units sold Number of units produced 18,000 20,000 $4.00 $ 3.00 $1.50 $1.25 $12.00
Assume the following data about actual prices, costs, and volume for Balmoral, Inc. for 2019: Selling price Variable manufacturing costs Fixed manufacturing costs Marketing and administrative costs (fixed and variable combined) $5 per unit $3 per unit $100,000 for 2019 $30,000 for 2019 Sales volume 100,000 units for 2019 120,000 units for 2019 Production volume There were no beginning inventories. What is the inventory cost at the end of 2019 under: (1) absorption costing $_ (2) variable costing S
1. In presenting inventory on the balance sheet December 31, 2021, the unit cost under absorption costing is? 2. What is the net income for 2021 under variable costing?
1. Under the absorption costing method, NUBD’s operating income for 2021 would be 2. What would be NUBD’s finished inventory cost at December 31, 2021 under the variable costing method?

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