Produced 50,000 Sold Year ended December 31, Year 1 Year ended December 31, Year 2 40,000 50,000 55,000 Production costs per unit have not changed over the two-year period. Under variable costing, what is the amount of cost of sales relative to the cost of sales shown on the GAAP income statement of the company? Year 1 a. Higher b. Higher c. Lower d. Lower Year 2 Higher Lower Higher Lower

Produced 50,000 Sold Year ended December 31, Year 1 Year ended December 31, Year 2 40,000 50,000 55,000 Production costs per unit have not changed over the two-year period. Under variable costing, what is the amount of cost of sales relative to the cost of sales shown on the GAAP income statement of the company? Year 1 a. Higher b. Higher c. Lower d. Lower Year 2 Higher Lower Higher Lower

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A. What is the net income under variable costing method?B. What is the net income under absorption costing method?
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What is the net income under variable costing method? What is the net income under absorption costing method?
Question: The total fixed costs charged against the current year’s operations assuming that NUBD uses absorption costing is
Compute for the net operating income under variable costing for year 1 Puif Company's absorption costing income statements for the last two years are presented below: Year 1 Year 2 Sales $70,000 $90,000 Less cost of goods sold: Beginning inventory Add cost of goods manufactured 6,000 48,000 48,000 Goods available for sale 48,000 54,000 Less ending inventory | Cost of goods sold Gross margin Less selling & admin. expenses 6,000 42,000 54,000 28,000 36,000 25,000 31,000 |Net operating income $ 3,000 $ 5,000 Data on units produced and sold in each of these years are given below: Year 1 Year 2 Units in beginning inventory Units produced Units sold 1,000 8,000 8,000 7,000 9,000 Fixed factory overhead totaled $16,000 in each year. This overhead was applied to products at a rate of $2 per unit. Variable selling and administrative expenses were $3 per unit sold.
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vj subject-Accounting Hanks recently produced & sold 2777 units. Fixed costs per unit at this level of activity amounted to $8; variable costs per unit were $9. How much total cost would the company anticipate if during the next period it produced & sold 6919 units? Note: assume this level is still within the relevant range Round your final answer to 2 decimal places
5. Calculate the direct material from the following information: Direct expenses RO 90,000, Direct labor RO 20,000, manufacturing overheads RO 30,000 and prime cost RO 170,000. a.RO 21,000 b.RO18,000 c.RO 60,000 d.RO 20,000 6. Which of the following are used for calculating economic order frequency? i. Total annual consumption ii. No of order per year iii. Buying cost per order iv. 365 days a.i and ii b.ii and iv c.iii and iv d.i and iv