Ollie's Olive Oil began business in 2010, during which it produced 104,000 quarts of olive oil. In 2010, the company sold 100,000quarts of olive oil. Costs incurred during the year were as follows: Ingredients used Direct labor Variable overhead Fixed overhead Variable selling expenses Fixed selling and administrative expenses Total actual costs $ 2,28,800 1,04,000 1,97,600 98,800 50,000 1,20,000 $ 7,99,200 What was the variable cost of goods sold for 2010 under variable costing?

Ollie's Olive Oil began business in 2010, during which it produced 104,000 quarts of olive oil. In 2010, the company sold 100,000quarts of olive oil. Costs incurred during the year were as follows: Ingredients used Direct labor Variable overhead Fixed overhead Variable selling expenses Fixed selling and administrative expenses Total actual costs $ 2,28,800 1,04,000 1,97,600 98,800 50,000 1,20,000 $ 7,99,200 What was the variable cost of goods sold for 2010 under variable costing?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Last year, Brody completed 100,000 units. Sales revenue equaled 1,200,000, and Brody paid a sales commission of 5 percent of sales. Required: 1. Calculate the direct materials used in production for last year. 2. Calculate total prime cost. 3. Calculate total conversion cost. 4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost. 5. Prepare a cost of goods sold statement for last year. 6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.
JART manufactures and sells underwater markers. Its contribution margin income statement follows. Contribution Margin Income Statement For Year Ended December 31 Per Unit Annual Total Sales (420,000 units) $ 7.00 $ 2,940,000 Variable costs Direct materials 1.46 613,200 Direct labor 0.44 184,800 Variable overhead 0.70 294,000 Contribution margin 4.40 1,848,000 Fixed costs Fixed overhead 0.30 126,000 Fixed general and administrative 0.25 105,000 Income $ 3.85 $ 1,617,000 A potential customer offers to buy 52,000 units for $3.70 each. These sales would not affect the company’s sales through its normal channels. Details about the special offer follow. Direct materials cost per unit and variable overhead cost per unit would not change. Direct labor cost per unit would be $0.62 because the offer would require overtime pay. Accepting the offer would require incremental fixed general and administrative costs of $5,200. Accepting the offer would require no…
Trippett Industries manufactures cleaning products. During the year, the company spent $600,000 on chemicals and $728,000 on conversion costs. Overhead is allocated at a rate of 180% of direct labor costs. How much did the company spend on manufacturing overhead during the year? Multiple Choice $260,000. $404,444. $468,000. $128,000.
Sunland makes Halloween costumes. The company incurred the following total costs to produce 27,900 costumes. Direct materials $250,000 Direct labor 126,000 Variable overhead 22,970 Fixed overhead 125,550 (a) Under the absorption costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 19,400 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.) Average unit product cost $enter a dollar amount rounded to 2 decimal places Product cost $enter a dollar amount rounded to 0 decimal places (b) Under the variable costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 19,400 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.) Average unit product cost…
The company's direct labor costs were $1,353,600 and its total a st of goods manu- percentage of direct labor costs. The ending inventories include the following'costs: Problem 2-5 Detomining Cosł ol Goods Sold factured was $4,820,000 for the year. Manufacturing overhead costs are a constant · materials ($192,200), work in process ($128,000), and finished goods ($236,000). pany's 1990 manufacturing performance. The beginning inventories included raw The treasurer of Halc Company has accumulated cost data concerning the com $1,353,600 and its total a st of goods manu- The company's direct labor costs were Raw Work in Process Finished Materials Goods $176,000 $44,000 44,800 $ 60,000 52,800 79,200 $192,000 Raw materials Direct labor. Manufacturing overhead Tatal ending inventory. $176,000 Required: Prepare a schedule showing the cost of goods sold for 1990.
The Childers Company manufactures widgets. During the fiscal year just ended, the company incurred prime costs of P1,500,000 and conversion costs of P1,800,000. Overhead is applied at the rate of 200% of direct labor cost. How much of the above costs represent material cost?
hh
Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blowers and sold 8,500. At year-end the company reported the following income statement using absorption costing. Sales (8,500 x $45): 382,500 cost of goods sold (8,500 x $20): 170,000 gross margin: $212,500 selling and administrative expenses: 60,000 net income: $152,500 Production costs per leaf blower total $20, which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced). Fifteen percent of total selling and administrative expenses are variable. Compute net income under variable costing. $146,500 $158,500 $237,500 $206,500 $246,500
General Accounting
Edge Manufacturing produces two types of entry doors: Deluxe and Standard. The assignment basis for support costs has been direct labor dollars. For 2009, Edge Manufacturing compiled the following data for the two products: Deluxe Standard Sales units $50,000 $400,000 Sales price per unit $650.00 $475.00 Direct material and labor costs per $180.00 $130.00 unit Manufacturing support costs per unit $ 80.00 $120.00 Last year, Edge Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information for 20X5: Cost Driver Activity Setups Machine- # of machine Cost Total Deluxe Standard # of setups $ 500,000 $44,000,000 | 600,000 300,000 |300,000 500 400 100 related hours Packing # of shipments $ 5,000,000 | 250,000 |50,000 200,000 N.B.: # = number Required:…
Need Answer please