On June 1, Turner Corp. had 1,200 units of Product 33 on hand, at a cost of$12.25 per unit. On June 13, it purchased 3,000 more units at a cost of $12.75each, and on June 22, it purchased 2,800 more units at a cost of $13.00 each.3,600 units were sold during the month of June. Turner uses a last-in, first-outcost flow assumption. What is cost of goods sold for June?$46,600$45,300$42,750O $44,050

LIFO, or Last-In, First-Out, is an inventory valuation method where the last items purchased or…

Answered: On June 1, Turner Corp. had 1,200 units…

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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Evansville Company had the following transactions for the month. Number Cost of Units per Unit Purchase $8,000 Purchase 6 9,000 Purchase 9,500 Calculate the gross margin for each of the following cost allocation methods, assuming Evansville sold just one unit of these goods for $10,000. Round your intermediate calculations and final answers to the nearest dollar amount. Gross Margin A. First-in, First-out (FIFO) B. Last-in, First-out (LIFO) C. Weighted Average (AVG) When prices are rising (inflation), which costing method would produce the highest value for gross margin?
Yellowstone Company began operations on January 1 to produce a hiking poles. It used an absorption costing system with a planned production volume of 104,000 units. During its first year of operations, the planned production volume was achieved, and there were no fixed selling or administrative expenses. Inventory on December 31 was 10,400 units, and operating income for the year was $374,400. Required: 1. If Yellowstone Company had used variable costing, its operating income would have been $332,800. Compute the break-even point in units under variable costing.
Chandler Company sells its product for $108 per unit. Variable manufacturing costs per unit are $49, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $17 per unit sold. Fixed administrative expenses total S104,000. Chandler had no beginning inventory for the year. During the year, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company be higher if calculated using variable costing or using absorption costing? Calculate reported income using each method. Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Fixed Costs Answer Less: Ending Inventory Answer Cost of Goods Sold Answer Answer Answer Answer Answer Administrative expense Answer Net Income Answer Variable Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Answer…
Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current month: Cost Information for Producing 10,000 Units Accounts Amount Direct materials costs $30,000 Direct labor costs $55,000 Variable manufacturing overhead costs $20,000 Fixed manufacturing overhead costs $25,000 Variable Selling and Administrative expenses $15,000 Fixed Selling and Administrative expenses $10,000 The product costs per unit under variable costing would be: Group of answer choices $10.50 per unit $13 per unit $15.50 per unit $12 per unit
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales totaled $1,287,650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice $19.50 per unit $24.20 per unit O $18.40 per unit $288,405 $145,899 $288,405 $542,880 $13.90 per unit
Adams Company makes a single product that it sells for $8.45 per unit. Provided below is information about this product for the past nine months: Month January February March April May June July August September Total Cost Incurred $28,730 $24,580 $30,660 $16,890 $19,120 $20,610 $17,490 $25,380 $15,540 Units Sold 6,400 5,150 6,900 2,950 3,600 4,150 3,350 5,500 2,700 Adams Company expects to sell 4,620 units of this product during October. Using the high-low method, calculate Adams Company's expected margin of safety for October.
During its first year of operation Salon Manufacturing Company sold 1,000 units of inventory. Salon incurred variable product cost of $5.50 per unit and $1,875 of fixed manufacturing overhead costs. The sales price of the products was $7.50 per unit. Salon uses absorption costing. Based on this information Salon will report net income of (Do not round intermediate calculations.) $500 if the company made 1,250 units of product during the year $750 if the company made 1,500 units of product during the year. $1,000 if the company made 1,875 units of product during the year. All of the answers are correct.
In the last reporting period, Harold's Hat Company recorded 100,000 units sold for the first time in the history of the company. The price per unit was $89.99 and variable costs per unit was $36.39. Compute the fixed costs if the operating income is $4,020,000. Do not use units in your final answer (i.e. $ or commas). Answer:
Sheffield Corp. sells its product for $70 per unit. During 2016, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses. The per-unit manufacturing cost under absorption costing is: a. $41 b. $28 c. $40 d. $27
Pena Co. manufactures concert merchandise. During the most productive month of the year, 6,000 hoodies were manufactured at a total cost of $161,600. In its slowest month, the company made 2,800 hoodies at a cost of $104,000. Using the high-low method of cost estimation, total fixed costs are: $53,600 $28,600 $58,000 Cannot be determined from the data given
Mario’s Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company’s first two months in business: (picture chart 1) Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February. Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing Is operating income higher under absorption costing or variable costing in January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing.

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