What is the ending inventory? PepsiCo Manufacturing provided the followingdata for the year:Beginning Inventory in Units - 0Units produced - 15,000Units Sold - 13,200Sales $480,000Material 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.

Solution: Ending Inventory under Variable CostingStep 1: Determine Unit Cost under Variable…

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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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)
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)
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.
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.
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Specific Identification, FIFO, LIFO, and Weighted-Average Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as follows: Units Unit Price Total Cost October 1, 20-1 Beginning inventory 400 $20 $8,000 October 18 1st purchase 540 20.5 11,070 November 25 2nd purchase 200 21.5 4,300 January 12, 20-2 3rd purchase 300 23 6,900 March 17 4th purchase 890 24 21,360 June 2 5th purchase 780 24.5 19,110 August 21 6th purchase 200 25.5 5,100 September 27 7th purchase 660 26.5 17,490 3,970 $93,330 Use the following information for the specific identification method. There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units: 100 are from October 18, 20-1 1st purchase 200 are from January 12, 20-2 3rd purchase 100 are from March 17 4th purchase 400 are from June 2 5th purchase 200 are from August 21 6th purchase 300 are from September 27 7th purchase…
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 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 level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Fixed Unit manufacturing costs of the period $7.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.920 decrease Ob. 161.928 increase O$54.187 increase d. 554.107 decrease Variable $10.00
SPECIFIC IDENTIFICATION, FIFO, LIFO, AND WEIGHTED-AVERAGE Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as follows: Units Unit Price Total Cost October 1, 20-1 $20.00 $ 8,000 Beginning inventory 1st purchase 2nd purchase 3rd purchase 4th purchase 5th purchase 6th purchase 7th purchase 400 October 18 500 20.50 10,250 November 25 200 21.50 4,300 January 12, 20-2 300 23.00 6,900 22,050 20,000 5,200 March 17 900 24.50 June 2 August 21 September 27 800 25.00 200 26.00 700 18,900 $95,600 27.00 4,000 Use the following information for the specific identification method.
on Given the following data, calculate the cost of goods sold using the FIFO costing method: Jan Beginning inventory 110 units at $30 per unit, Feb 25 Purchased 100 units at $32 per unit; June 15 Purchased 80 units at $33 per unit; Sept 20 Purchased 75 units at $31 per unit; Dec 31 Ending inventory 125 units. It might help to make a table. Select one: O a $11,465 O b. $4,965 Oc: $7,490 Od. $3,975

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