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.
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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
Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 14,500 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018 2019 Units sold 13,000 12,500 Units produced 14,500 13,500 Costs: Variable factory overhead per unit $ 0.15 $ 0.15 Fixed factory overhead $ 2,900 $ 2,700 Variable marketing per unit $ 0.30 $ 0.30 Fixed Selling and Administrative $ 320 $ 320 Full costing operating income for 2019 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.) Multiple Choice $225. $655. $1,555. $2,150. $1,780.
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)
Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,500 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018 2019 Units sold 7,000 6,500 Units produced 8,500 7,500 Costs: Variable factory overhead per unit $ 0.15 $ 0.15 Fixed factory overhead $ 1,700 $ 1,500 Variable marketing per unit $ 0.30 $ 0.30 Fixed Selling and Administrative $ 320 $ 320 Full costing operating income for 2019 is calculated to be:
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Zhender Inc. manufactures hair brushes 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 Full costing operating income for 2018 is calculated to be: