Required:Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certainto enter "O" wherever required.)Dowell CompanyConvert Variable Costing Income to Absorption Costing IncomeYear 1Year 2Variable costing income$46,000$640,000Absorption costing income Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow.Variable Costing IncomeYear 1Year 2Income$ 46,000$ 640,000Additional Informationa. Sales and production data for these first two years follow.UnitsUnits producedYear 1Year 247,60036,00047,60059,200Units soldb. The company's $38 per unit product cost (for both years) using absorption costing consists of the following.Direct materials$ 8Direct laborVariable overhead119Fixed overhead ($460,000/46,000 units)10Total product cost per unit$ 38Required:Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certainto enter "O" wherever required.)

Lets understand the basis. There are two type of costing system are followed by the entity which…

Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Year 1 Year 2 $ 46,000 $ 640,000 Income Additional Information a. Sales and production data for these first two years follow. Units Year 1 Year 2 Units produced Units sold 47,600 36,000 47,600 59,200 b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor 11 Variable overhead Fixed overhead ($460,000/46,000 units) 10 Total product cost per unit $ 38 Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "0" wherever required.)

Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Year 1 Year 2 $ 46,000 $ 640,000 Income Additional Information a. Sales and production data for these first two years follow. Units Year 1 Year 2 Units produced Units sold 47,600 36,000 47,600 59,200 b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor 11 Variable overhead Fixed overhead ($460,000/46,000 units) 10 Total product cost per unit $ 38 Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "0" wherever required.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A 1 Chapter 7: Applying Excel 2 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 7 8 Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead 9 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year 14 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 25 Units in beginning inventory 26 Units produced during the year 27 Units sold during the year 28 Units in ending inventory 29 30 Compute the Absorption Costing Unit Product Cost 31 32 Direct materials 33 Direct labor 34 Variable manufacturing overhead 35 Fixed manufacturing overhead 36 Absorption costing unit product cost 37 19 20 Enter a formula into each of the cells marked with a ? below 21 Review Problem 1: Contrasting Variable and Absorption Costing 22 23 Compute the Ending Inventory 24 46 Compute the Variable Costing Unit Product Cost 47 48 Direct materials 49 Direct labor…
Question Two Pass-Well Company Limited produces a product that passes through two processes, Process 1 and Process 2. Details of activities for the month of December, 2020 is as follows; Process 1 @GH₵200.00 200hrs 3,500units GH₵20 per unit Process 2 GH₵25,000.00 600hrs 3,150units GH₵40 per unit a. You are required to prepare the relevant accounts b. You are required to prepare the relevant Accounts With practical example, differentiate between cost assignment and cost apportionment; product cost and period costs; direct Material introduced (4,000 units) Material added Labour Costs (@GH₵400 per hour) Output in units Scrap value of normal loss Note; i. Overhead is absorbed at 80% of labour costs. ii. Normal loss is estimated at 10% for both process. iii. No opening and closing stocks cost and indirect cost
Dowell Company produces a single product. Its Income under variable costing for its first two years of operation follow. Variable Costing Income Income Units Units produced Units sold Additional Information a. Sales and production data for these first two years follow. Year 1 $ 43,000 Year 1 44,300 33,000 Direct materials Direct labor Variable overhead Fixed overhead ($430,000/43,000 units) Total product cost per unit Variable costing income Year 2 b. The company's $32 per unit product cost (for both years) using absorption costing consists of the following. Absorption costing income 44,300 55,600 Year 2 $ 610,000 Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "0" wherever required.) $6 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $ 9 7 10 $32 43,000 $ Year 2 610,000
Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. c. Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1%
Exercise 7-14 Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis [LO7-1, LO7-2] Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials 9,500 8,700 800 24 80 20 10 30 Direct labor Variable manufacturing overhead Variable selling and administrative 2$ Total variable cost per unit 140 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 170,000 160,000 $ 330,000 Total fixed costs Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year. 3. What is the company's break-even point in terms of the number of barbecue grills sold? Complete this question by entering…
Exercise 18-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $87 per unit. The company's annual fixed costs are $916,400. Management targets an annual income of $1,450,000. (1) Compute the unit sales to earn the target income. Numerator: 1 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = || = = || Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0
ussions Question 10 --/1 erences View Policies aborations Current Attempt in Progress eyPLUS Support Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $18, direct labor $14, variable manufacturing overhead $9, fixed manufacturing overhead $11, variable selling and administrative expenses $6, and fixed selling and administrative expenses $12. Using a 35% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e g. 10.50.) Central ce 365 dges zza Target selling price $ 845 PM 11/18/2019 hp foll ins prt sc n2 home delete end 144 + num backspace lock P 7 home
EXERCISE 1-7 Direct and Indirect Costs L01-1 2.000.81 10 Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Juris Required: 1. 2. 3. 4. a. b. a. b. the Untus ha babubong asin Direct materials.. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense.. Sales commissions...... Variable administrative expense. b. Average Cost per Unit $7.00 $4.00 $1.50 $5.00 $3.50 $2.50 $1.00 $0.50 Assume the cost object is units of production: What is the total direct manufacturing cost incurred to make 20,000 units? What is the total indirect manufacturing cost incurred to make 20,000 units? Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. How much total manufacturing cost is directly traceable to the Manufacturing Department? How much total manufacturing cost is an indirect cost that…
High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $219,590 2,710 units February 168,480 1,680 March 262,080 4,080 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $ b. Total fixed cost
High-Low Method The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Total Costs Production January $75,240 855 units February 86,530 1,700 March 117,040 2,755 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2
Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information a. Sales and production data for these first two years follow. Unite Units produced Units sold Direct materials Direct labor Year 1. Year 2 $ 47,000 $ 650,000 Year 1 48,700 37,000 b. The company's $37 per unit product cost (for both years) using absorption costing consists of the following. Year 2 48,700 60,400 Variable overhead Fixed overhead ($470,000/47,000 units) Total product cost per unit Variable costing income Absorption costing income $7 11 9 Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "0" wherever required.) 10 $ 37 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $ 47,000…
Chapter 6: A Closer Look on Cost Accounting The company makes 2,350 units of product X a year, requiring a total os 3.300 machine hours, 250 orders and 200 inspection hours per year. The product's direct material cost is P201.50 and its direct labor cost in P211.11 per unit. The product sells for P590 per unit. According to the activity-based costing system, the gross margin for product X is? 423,087.50 b. 350,435.50 c. 416,890 d. None of the choice a. 56. The following information is available for Mary Corp. Activity Pool Setups Quality Inspections Assembly (direct labor hour) What is the activity rate for setups? Activity Base 50,000 120,000 400,000 Budgeted Amount 300,000 600,000 2,000,000 a. P5.09 c. РО.75 d. P58.00 b. Рб.00 The activity rate for quality inspection is: с. Рб.00 d. P5.09 a. P5.29 b. P5.00