Pane Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2015 and 2016 was 2,500 units. There was no beginning inventory in 2015. The following data summarized the 2015 and 2016 operations: Year Units sold Units produced Sales price per unit 2015 2016 2,500 3,000 3,000 2,500 $2.60 $2.60 Costs: Direct materials per unit $ 0.10 $ 0.10 Direct labor per unit $ 0.20 $ 0.20 Variable factory overhead per unit $ 0.40 $ 0.40 Fixed factory overhead $ 1,200.00 $ 1,200.00 Variable selling per unit sold $ 0.90 $ 0.90 Fixed administrative $ 650.00 $ 650.00 Compute: 1. Absorption costing operating income for 2015. 2. Variable costing operating income for 2015.

Pane Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2015 and 2016 was 2,500 units. There was no beginning inventory in 2015. The following data summarized the 2015 and 2016 operations: Year Units sold Units produced Sales price per unit 2015 2016 2,500 3,000 3,000 2,500 $2.60 $2.60 Costs: Direct materials per unit $ 0.10 $ 0.10 Direct labor per unit $ 0.20 $ 0.20 Variable factory overhead per unit $ 0.40 $ 0.40 Fixed factory overhead $ 1,200.00 $ 1,200.00 Variable selling per unit sold $ 0.90 $ 0.90 Fixed administrative $ 650.00 $ 650.00 Compute: 1. Absorption costing operating income for 2015. 2. Variable costing operating income for 2015.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 5E: Prepare a cost of goods sold budget for MacLaren Manufacturing Inc. for the year ended December 31,...

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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. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional information follows: Materials used in production: Direct labor hours required in production: Prepare the following: a. A production budget for May. b. A direct materials budget for May. c. A direct labor budget for May.
Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations: 2016 2017 Units sold 2,500 3,200 Units produced 3,000 3,000 Costs: Variable manufacturing costs per unit $0.65 $0.65 Fixed factory overhead $1,290 $1,290 Variable marketing per unit $0.80 $0.80 Fixed Selling and Administrative $650 $650 What is the value of closing inventory in 2016 under absorption costing? Question 9 options: 1) $325 2) $540 3) $195 4) $324 Next Page
HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations: 2016 2017 Units sold 2,500 3,200 Units produced 3,000 3,000 Costs: Variable manufacturing costs per unit $0.65 $0.65 Fixed factory overhead $1,290 $1,290 Variable marketing per unit $0.80 $0.80 Fixed Selling and Administrative $650 $650 Variable costing operating income for 2016 is calculated to be: Question 8 options: 1) $935 2) $1,150 3) $1,200 4) $1,352
HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations: 2016 2017 Units sold 2,500 3,200 Units produced 3,000 3,000 Costs: Variable manufacturing costs per unit $0.65 $0.65 Fixed factory overhead $1,290 $1,290 Variable marketing per unit $0.80 $0.80 Fixed Selling and Administrative $650 $650 Absorption costing operating income for 2016 is calculated to be: Question 9 options: 1) $935 2) $1,150 3) $1,200 4) $1,352
Zhender Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2018 and 2019 was 4,400 units. There was no beginning inventory in 2018.The following data summarized the 2018 and 2019 operations: 2018 2019 Units sold 3,200 4,600 Units produced 4,400 4,400 Costs: Variable factory overhead per unit $0.55 $0.65 Fixed Factory Overhead $1,980 $1,980 Variable Marketing per unit $0.75 $1.00 Fixed Selling and Administrative $650 $650 Full cost operating income for 2018 is calculated to be: (Do not round immediate calculations. Round final answers to whole dollar amounts)
Zhender Inc. manufactures hair brushes that sell at wholesale for $2.50 per unit. Budgeted production in both 2018 and 2019 was 4,600 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018 2019 Units sold 3,300 4,800 Units produced 4,600 4,600 Costs: Variable factory overhead per unit $ 0.65 $ 0.65 Fixed factory overhead $ 1,978 $ 2,070 Variable marketing per unit $ 0.75 $ 0.80 Fixed Selling and Administrative $ 650 $ 650 Variable costing operating income for 2019 is calculated to be: (Do not round intermediate calculations. Round your final answers
Zhender Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2018 and 2019 was 4,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018 2019 Units sold 3,000 4,200 Units produced 4,000 4,000 Costs: Variable factory overhead per unit $ 0.65 $ 0.65 Fixed factory overhead $ 1,800 $ 1,800 Variable marketing per unit $ 0.75 $ 0.80 Fixed Selling and Administrative $ 650 $ 650 Full costing operating income for 2019 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)
Crompton produces a product that sell at wholesale for 2.60 per unit. Budgeted production in both 2018 and 2019 was 3,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018, 2019 Units sold =2,500, 3,200 Units produced 3,000 3,000 Costs: Variable factory overhead per unit 0.65, 0.65 Fixed factory overhead 1,290, 1,290 Variable marketing per unit 0.80, 0.80 Fixed Selling and Administrative 650, 650 Compute variable costing operating income for the 2019.
Alpesh
Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 16,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations: 2021 2022 Units sold 14,500 12,000 Units produced 16,000 13,000 Costs: Variable factory overhead per unit $ 0.15 $ 0.15 Fixed factory overhead $3,200 $ 2,600 Variable marketing per unit $ 0.30 $ 0.30 Fixed Selling and Administrative S 320 S 320 Full costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)