I need help solving this general accounting question with the proper methodology. PepsiCo Manufacturing provided the followingdata for the year:Beginning Inventory in Units - 0Units produced - 15,000Units Sold - 13,200Sales $480,000. Material Cost (unit level/variable) - $120,000Variable Conversion Cost Used - $75,000Fixed Manufacturing Cost (Facility Level)$70,000-Indirect Operating Cost (fixed) - $90,000What is the ending inventory under variablecosting? Show your complete solution.

Step 1: DefinitionsConcept of Variable Costing:Variable costing is a method of inventory valuation…

Answered: PepsiCo Manufacturing provided the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 3CMA

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Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $50 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.
Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: Product Cost Selling Price Estimated Cost of Disposal A $90,000 $150,000 $20,000 B 110,000 120,000 15,000 C 60,000 70,000 5,000 D 100,000 115,000 5,000
SLR Corporation has 2,500 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Product 1Product 2Cost$80$50Selling price$145$51Costs to sell$11$3 Determine the carrying value of SLR’s inventory (i.e., ending balance) assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products.
Solve this MCQ
The amount of gross profit for the year is?
Given the following information regarding to a recent period's operations: Sales - P? Beginning finished goods inventory - P12,000 Cost of goods manufactured - P36,000 Ending finished goods inventory - P6,000 Cost of goods sold - P? Gross margin - 40% of Sales Administrative and selling expenses_P10,000 Net operating income - P? Determine the following: • cost of goods sold • cost of goods available for sale • net operating income • gross margin • sales
The cost of goods sold is?
The following data were taken from the records of C5 Drinks Company for the years ending Year I and Year 2 Year 1 Year 2 In units 00 Inventory, beginning Production Available for sale 20,000 20,000 13,000 7,000 P260,000 7,000 18,000 25,000 23,000 2,000 P460,000 Units sold Inventory ending Sales (P20 per unit) egtarb won sE Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing costs Selling and administrative (60% fixed, 40% variable) 45,000 150,000 50,000 135,000 54,000 75,000 ani nel Instructions: 1. Determine the net income under absorption costing for Year I and Year 2. 2. Determine the net income under variable costing for Year1 and Year 2. 3. Determine the cause of the difference in the two net incomes in Year 1 and Year 2.sV
The following data relates to Alpha Company. Units in beginning inventory Units produced Units sold ($350 per unit) Variable costs per unit: Direct materials Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced Fixed selling and administrative expenses - 26,000 19,000 $40 60 25 $50 150,000 Determine the value of ending inventory under variable costing. a. $700,000 O b. $1,225,000 C. $805,000 O d. $875,000

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