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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%

FINANCIAL ACCOUNTING
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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1. The amount of fixed factory costs applied to product during the first 6 months under absorption costing is?

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?

... L 4 | 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%
Transcribed Image Text:... L 4 | 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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