Q.3) The following data are available for 2016 from the accounting records of Orient Company: Units in beginning inventory Units produced Units in ending inventory Selling price per unit Manufacturing costs Direct materials (per unit) Direct labor (per unit) Variable overhead (per unit) Fixed overhead (total) Selling and Administrative expenses Variable (per unit) Fixed (total) 20,000 4,000 $20 $4 $2 $1 $60,000 $3 $40,000 Required: a) Compute the per unit using absorption costing and variable costing. b) Prepare an income statement under (i) absorption costing and (ii) variable costing.

Q.3) The following data are available for 2016 from the accounting records of Orient Company: Units in beginning inventory Units produced Units in ending inventory Selling price per unit Manufacturing costs Direct materials (per unit) Direct labor (per unit) Variable overhead (per unit) Fixed overhead (total) Selling and Administrative expenses Variable (per unit) Fixed (total) 20,000 4,000 $20 $4 $2 $1 $60,000 $3 $40,000 Required: a) Compute the per unit using absorption costing and variable costing. b) Prepare an income statement under (i) absorption costing and (ii) variable costing.

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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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
74. Subject :- Accounting
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Prepare the Income Statement for the year ended 31 December 2022 using the Marginal costing and Absorption costing methods. Opening inventory Nil Number of units manufactured 5 000 Number of units sold 4 500 Selling price per unit R200 Direct material cost per unit R14 Direct labour cost per unit R23 Variable manufacturing overheads cost per unit R12 Variable selling and administrative cost per unit sold R3 Fixed manufacturing overhead cost R200 000 Fixed selling and administrative costs R400 000
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
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