Questiolns z0 Tougn z5 ale vased OI le ToNownng miormatiOI, The annual flexible budget below was prepared for use in making decisions relations to Product Х. 100,000 units $ 800,000 200,000 units $1,600,000 150,000 units Sales volume Manufacturing costs: Variable $1,200,000 $450,000 200,000 $650,000 $300,000 $600,000 200,000 $800,000 Fixed 200,000 $500,000 Selling & other expenses Variable $200,000 $300,000 160,000 $460,000 $400,000 160,000 Fixed 160,000 $360,000 $(60,000) The 200,000 unit budget has been adopted and will be used for allocating fixed manufacturing costs to units of Product X. At the end of the first 6 months, the following information is Income (or loss) $560,000 $240,000 $90000 available: Units 120,000 60,000 All fixed costs are budgeted and incurred uniformly throughout the year, and all costs incurred coincide with the budget. Over- and under-applied fixed manufacturing costs are deferred until Production completed Sales year-end. Annual sales have the following seasonal pattern. Portion of Annual Sales First quarter Second quarter Third quarter Fourth quarter 10% 20% 30% 40%
Questiolns z0 Tougn z5 ale vased OI le ToNownng miormatiOI, The annual flexible budget below was prepared for use in making decisions relations to Product Х. 100,000 units $ 800,000 200,000 units $1,600,000 150,000 units Sales volume Manufacturing costs: Variable $1,200,000 $450,000 200,000 $650,000 $300,000 $600,000 200,000 $800,000 Fixed 200,000 $500,000 Selling & other expenses Variable $200,000 $300,000 160,000 $460,000 $400,000 160,000 Fixed 160,000 $360,000 $(60,000) The 200,000 unit budget has been adopted and will be used for allocating fixed manufacturing costs to units of Product X. At the end of the first 6 months, the following information is Income (or loss) $560,000 $240,000 $90000 available: Units 120,000 60,000 All fixed costs are budgeted and incurred uniformly throughout the year, and all costs incurred coincide with the budget. Over- and under-applied fixed manufacturing costs are deferred until Production completed Sales year-end. Annual sales have the following seasonal pattern. Portion of Annual Sales First quarter Second quarter Third quarter Fourth quarter 10% 20% 30% 40%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
1. The amount of fixed
2. Reported net income (or loss) for the first 6 months under absorption costing is?
3. Reported net income (or loss) for the first 6 months under variable costing is?
Transcribed Image Text:...
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Questiolis zu tilrougi z5 ale vased OIl ule TonoWIng IoImatioln.
The annual flexible budget below was prepared for use in making decisions relations to Product
Х.
100,000 units
150,000 units
200,000 units
Sales volume
$ 800,000
$1,200,000
$1,600,000
Manufacturing costs:
Variable
$300,000
200,000
$500,000
$450,000
$600,000
200,000
$800,000
Fixed
200,000
$650,000
Selling & other expenses
Variable
$200,000
$300,000
160,000
$460,000
$400,000
Fixed
160,000
160,000
$360,000
$(60,000)
The 200,000 unit budget has been adopted and will be used for allocating fixed manufacturing
costs to units of Product X. At the end of the first 6 months, the following information is
$560,000
$240,000
Income (or loss)
$90000
available:
Units
Production completed
Sales
120,000
60,000
All fixed costs are budgeted and incurred uniformly throughout the year, and all costs incurred
coincide with the budget. Over- and under-applied fixed manufacturing costs are deferred until
year-end. Annual sales have the following seasonal pattern.
Portion of Annual Sales
First quarter
Second quarter
Third quarter
Fourth quarter
10%
20%
30%
40%
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