Question 1During the most recent year, Jerai Company had the following data associated with theproduct it makes:Units in beginning inventory300Units producedUnits sold (RM300 per unit)15,00012,700Variable costs per unitRMDirect materials20Direct labor60Variable overhead12Fixed costsFixed overhead per unitproducedFixed selling and administrative30140,000Refer to the data above:a) How many units are in ending inventory?b) Using absorption costing and variable costing, calculate the per unit product cost.c) What is the value of ending inventory under absorption costing and variable costing?d) Calculate the cost of goods sold under absorption costing and variable costing.e) Prepare an income statement using absorption costing and variable costing.

"Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Question 1 During the most recent year, Jerai Company had the following data associated with the product it makes: Units in beginning inventory 300 Units produced Units sold (RM300 per unit) Variable costs per unit 15,000 12,700 RM Direct materials 20 Direct labor 60 Variable overhead 12 Fixed costs Fixed overhead per unit produced 30 Fixed selling and administrative 140,000 Refer to the data above: a) How many units are in ending inventory? b) Using absorption costing and variable costing, calculate the per unit product cost. c) What is the value of ending inventory under absorption costing and variable costing? d) Calculate the cost of goods sold under absorption costing and variable costing. e) Prepare an income statement using absorption costing and variable costing.

Question 1 During the most recent year, Jerai Company had the following data associated with the product it makes: Units in beginning inventory 300 Units produced Units sold (RM300 per unit) Variable costs per unit 15,000 12,700 RM Direct materials 20 Direct labor 60 Variable overhead 12 Fixed costs Fixed overhead per unit produced 30 Fixed selling and administrative 140,000 Refer to the data above: a) How many units are in ending inventory? b) Using absorption costing and variable costing, calculate the per unit product cost. c) What is the value of ending inventory under absorption costing and variable costing? d) Calculate the cost of goods sold under absorption costing and variable costing. e) Prepare an income statement using absorption costing and variable costing.

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 manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense 154 2,560 2,230 330 51 24 $. 15 16 $92,160 $11,150 The tegross margin for the month under absorption costing is: Multiple Chotce $62.440 S15.610, K Prev 4: of 10 Next > ere to search
The level of inventory of a manufactured product has increased by 7,949 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $12.00 $5.00 Unit operating expenses of the period 4.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$71,541 decrease b.$39,745 increase c.$39,745 decrease d.$71,541 increase
sasa
Please give me correct answer
need help please. also, please Calculate the total cost of the1,600 units in ending inventory using absorption costing and variable costing
Please help with question is correct answer
V. Prepare a CONTRIBUTION MARGIN (also known as variable costing) income statement given a traditional (also known as absorption costing) income statement Bruno Industries manufactures and sells a single product. The controller has prepared the following income statement for the most recent year: B C D 1 2 3 Bruno Industries Traditional Income Statement (Absorption Costing) For the Year Ended December 31 4 5 Sales revenue 6 Less: Cost of goods sold 7 Gross profit 8 Less: Operating expenses 9 Operating income $ 406,000 329,000 $ 77,000 73,000 $ 4,000 10 The company produced 8,000 units and sold 7,000 units during the year ending December 31. Fixed manufacturing overhead (MOH) for the year was $152,000, while fixed operating expenses were $62,000. The company had no beginning inventory. Requirements 1. Will the company's operating income under variable costing be higher, lower, or the same as its operating income under absorption costing? Why? 2. Prepare a variable costing income…
Provide correct solution
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
The level of inventory of a manufactured product has increased by 7,859 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 2.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $78,590 increase Ob. $62,872 increase Oc. $78,590 decrease Od. $62,872 decrease
Give me correct answer with explanation.j